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What the standard for property condition assessments means, what it covers, and how every Propertyexam commercial report follows it.
ASTM E2018 is the Standard Guide for Property Condition Assessments. It defines good commercial and customary practice in the United States for assessing the condition of a commercial building.
In plain terms, it sets the baseline for how an inspector surveys a commercial property, what research goes with that survey, and what the final report should tell you. Lenders, buyers and owners rely on it because every report built on it covers the same ground in the same way.
Standard
ASTM E2018, Standard Guide for Property Condition Assessments
Assessment
Property Condition Assessment (PCA)
Method
Walk-through survey, plus document review and interviews
Report
Property Condition Report (PCR)
Includes
Opinions of probable cost for suggested remedies
The guide combines what the inspector sees on site with what the records and people can tell, then turns it into one report.
1
The inspector walks the property and observes its systems, components and equipment to find material physical deficiencies. The guide recommends which items should be observed and reported.
In our reports: every commercial inspection starts here, scoped to your property.
2
Records, research and conversations with knowledgeable sources fill in what a visual survey can’t show, giving a fuller understanding of the property.
In our reports: plans, permits and service records are reviewed when available.
3
The PCR brings the survey, review and interviews together, and includes opinions of probable costs for suggested remedies of each physical deficiency found.
In our reports: costs are grouped by priority, with a five-year outlook. See samples
The goal of a PCA is to find and communicate physical deficiencies. The guide is specific about what that does and doesn’t include.
Conspicuous defects in the property’s material systems, components or equipment
Material deferred maintenance of those systems, components or equipment
Anything observed during the walk-through survey
Items fixed with routine maintenance or normal operating maintenance
Miscellaneous minor repairs
De minimis conditions that aren’t material deficiencies
Tap each example to see the answer.
✓ Counts. This is material deferred maintenance of a building system.
✗ Doesn’t count. Fixed with routine maintenance.
✓ Counts. Deferred maintenance that can let water into the building envelope.
✗ Doesn’t count. A de minimis condition, not a material deficiency.
Why ASTM E2018 exists, in the order the guide lists them.
01
Define good commercial and customary practice for assessing commercial real estate.
02
Make the content of Property Condition Reports consistent and relevant.
03
Set practical expectations for site observations, document reviews and research.
04
Establish reasonable expectations for what a report contains.
05
Help build an industry baseline standard of care for observations and research.
06
Communicate observations, opinions and recommendations in a way that’s meaningful to you.
When a property has several buildings, the guide intends for a single Property Condition Report to cover all of them. That’s how we report on multi-building sites too.
About the source
This page summarizes ASTM E2018 in plain language. For the full standard, contact ASTM International, 100 Barr Harbor Drive, West Conshohocken, PA 19428-2959.
Get a written scope of work and price before any work begins.
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