Why we use the ASTM E2018 Standards of Practice

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Why we use the ASTM E2018 Standards of Practice


As a California Realtor, you know there is no licensing required to be a property inspector. This can create uncertainty and open the door to non-uniform assessments and unrealistic expectations from those who are not familiar with the process.

Due to this, we always adhere to the Standards of Practice of the American Society for Testing and Materials (ASTM SOP) and recommend to prospective clients that they choose an inspector who follows these standards.

Below is Part I of their Standards of Practice. This should provide your clients with a better understanding of what a Property Condition Assessment will include.
Standard Guide for
Property Condition Assessments: Baseline Property
Condition Assessment Process1
1. Scope
1.1 Purpose—The purpose of this guide is to define good commercial and customary practice in the United States of America for conducting a baseline property condition assessment (PCA) of the improvements located on a parcel of commercial real estate by performing a walk-through survey and conducting research as outlined within this guide.
1.1.1 Physical Deficiencies—In defining good  commercial and customary practice for conducting a baseline PCA, the goal is to identify and communicate physical deficiencies to a user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property’s material systems, components, or equipment as observed during the field observer’s walk-through survey. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not present material physical deficiencies of the subject property.
1.1.2 Walk-Through Survey—This guide outlines procedures for conducting a walk-through survey to identify the subject property’s material physical deficiencies, and recommends various systems, components, and equipment that should be observed by the field observer and reported in the property condition report (PCR).
1.1.3 Document Reviews and Interviews—The scope of this guide includes document reviews, research, and interviews to augment the walk-through survey so as to assist the consultant’s understanding of the subject property and identification of physical deficiencies.
1.1.4 Property Condition Report—The work product resulting from completing a PCA in accordance with this guide is a PCR. The PCR incorporates the information obtained during the Walk-Through Survey, the Document Review and Interviews sections of this guide, and includes opinions of probable costs for suggested remedies of the physical deficiencies identified.
1.2 Objectives—Objectives in the development of this guide are: (1) define good commercial and customary practice for the PCA of primary commercial real estate improvements;
(2) facilitate consistent and pertinent content in PCRs; (3) develop practical and reasonable recommendations and expectations for site observations, document reviews and research associated with conducting PCAs and preparing PCRs;(4) establish reasonable expectations for PCRs; (5) assist in developing an industry baseline standard of care for appropriate observations and research; and (6) recommend protocols for consultants for communicating observations, opinions, and recommendations in a manner meaningful to the user.
1.3 Considerations Beyond Scope—The use of this guide is strictly limited to the scope set forth in this section. Section 11 and Appendix X1 of this guide identify, for informational purposes, certain physical conditions that may exist on the subject property, and certain activities or procedures (not an all inclusive list) that are beyond the scope of this guide but may warrant consideration by parties to a commercial real estate transaction.
1.4 Organization of This Guide—This guide consists of several sections, an Annex and two Appendixes. Section 1 is the Scope. Section 2 on Terminology contains definitions ofterms both unique to this guide and not unique to this guide, and acronyms. Section 3 sets out the Significance and Use of this guide, and Section 4 describes the User’s Responsibilities. Sections 5 through 10 provide guidelines for the main body of the PCA, including the scope of the Walk-Through Survey, preparation of the Opinions of Probable Costs to Remedy Physical Deficiencies, and preparation of the PCR. Section 11 provides additional information regarding out of scope considerations (see1.3). Annex A1 provides requirements relating to specific asset types, and where applicable, such requirements are to be considered as if integral to this guide. Appendix X1 provides the user with additional PCA scope considerations, whereby a user may increase this guide’s baseline scope of due diligence to be exercised by the consultant. Appendix X2 outlines the ADA Accessibility Survey.
1.5 Multiple Buildings—Should the subject property consist of multiple buildings, it is the intent of this guide that only a single PCR be produced by the consultant to report on all of the buildings on the subject property.

FAQs:Q: Does the inspector provide a thorough inspection?

A: Our emphasis is on the 5 major systems – the foundation, roof, plumbing, electrical and heating/air systems. We’ll also inspect the interiors, exteriors, grounds, parking area and provide a Cost to Cure. On structures over 10,000 square feet, we also include a 5-year cost analysis. So, while “thorough” is a relative term, our report is detailed and follows the ASTM SOP to a T.

Q: Why not hire all the specialists and skip the generalist?

A: There are many, many different types of specialists and they usually aren’t all necessary. A property condition assessment will uncover defects and provide recommendations on which specialists are needed for each individual property.

Q: What is excluded from a property condition assessment?

A: The assessment does not include the examination of sewer line/septic, testing for mold/moisture or other environmental inspections that require specific licensing, certification and/or specialized equipment. Also, we don’t operate valves or any other components that require specialized tools and we don’t move or dismantle systems in order to view the components.

If you are interested in learning more about the American Society of Testing and Materials (ASTM), please visit their website: https://www.astm.org/

Love,
Your Alliance Team
Posted in Qualified RE Inspectors.