Often misunderstood or overlooked, compliance and safety technical due diligence is critical when acquiring a commercial property asset.
Fully understanding the asset, you are taking on can help you make an informed decision, add leverage during negotiations and minimise exposure to risk. It can save time and money, highlight compliance gaps, and prevent future fines or legal implications. Technical due diligence can also identify required remedial works and associated costs so these can be appropriately planned and budgeted for.
Here are five key focus areas, and what commonly gets missed.
Fire safety
Fire safety remains a major concern, particularly with recent changes to the Building Safety Act. Issues around compartmentation, fire doors and construction quality can pose significant risks. Buyers should be aware that even newer buildings may have compliance failures or construction defects that require costly upgrades. Acquiring a non compliant asset means inheriting all associated risks and remedial obligations.
Materials hazardous to health
Technical due diligence will highlight hazardous materials such as asbestos, lead, Reinforced Autoclaved Aerated Concrete (RAAC) and high alumina cement. These materials can present structural concerns or health risks if disturbed. Industrial buildings may still have asbestos roofing, while some older buildings that have never been refurbished may retain lead-based materials. RAAC, widely discussed since 2018, can weaken over time, particularly in ceilings, increasing the risk of collapse.
Health and safety in use
Surveys help identify hazards such as unsafe access, trip risks, structural voids and general site safety concerns. Although not a full accessibility audit, technical due diligence should also flag issues relating to disabled access and compliance with the Equality Act. Understanding these deficiencies early allows for planned upgrades and cost forecasting.
Historic alterations and building works
Where buildings have been extended or altered, compliance checks are essential. The survey will identify:
- whether works complied with building regulations
- whether approval was granted
- if planning permission was required and obtained
- any unauthorised or unsafe alterations
Failure to assess historic works can lead to major safety issues and unexpected costs.
Environmental risks
Environmental factors such as flooding, ground stability and land contamination present risks both to occupants and the building itself. Standing water, rivers, coastal proximity or historic land uses can all influence the building’s long term safety and suitability. Understanding environmental conditions supports informed decision-making and reduces unexpected remediation exposure.
In conclusion, comprehensive technical due diligence goes far beyond assessing building condition. It helps prospective buyers understand the asset in the context of intended use, compliance obligations, occupant safety and long-term operational risk. With a structured approach, it provides confidence in the investment and helps unlock the full potential of the property asset.