Technical Due Diligence Audit: Building Audit

AUST – HENDRY building surveyors were engaged by a major institutional building owner to provide a technical due diligence audit encompassing a building audit. The technical due diligence audit covered regulatory issues such as the Building Code of Australia (BCA), Essential Safety Measures, Accessibility Audit (DDA), Risk and OH&S.

The following is a part extract of a very extensive due diligence audit (Volumes 1, 2 and 3). Building owners and managers can view the Table of Contents and Preamble for the building audit. This will provide you with a broad description of the depth that a BCA Building Audit can encompass for the scope of work specified.

Building Audit
Due Diligence Audit

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DUE DILIGENCE AUDIT TABLE OF CONTENTS

 

1 HENDRY GROUP VERIFICATION – DUE DILIGENCE AUDIT ………….4

2 DUE DILIGENCE EXECUTIVE SUMMARY ……………………………………………5

2.1 OVERVIEW OF DUE DILIGENCE AUDIT …………………………………………………..5
2.2 REGULATORY ISSUES ……………………………………………………………………………….6
2.3 ESSENTIAL SAFETY MEASURES ………………………………………………………………..6
2.4 ACCESSIBILITY AUDIT – BCA/DISABILITY DISCRIMINATION ACT (DDA)..6
2.5 RISK AND OHS …………………………………………………………………………………………..6
2.6 REPORTING ………………………………………………………………………………………………7
2.7 RECOMMENDED WORKS SUMMARY ……………………………………………………….7

3 INTRODUCTION ………………………………………………………………………………………X

3.1 PURPOSE OF DUE DILIGENCE AUDIT ……………………………………………………..X
3.2 DUE DILIGENCE AUDIT/ REPORT METHODOLOGY ………………………………X
3.3 DUE DILIGENCE AUDIT LIMITATIONS ……………………………………………………X
3.4 APPLICABLE LEGISLATION, DOCUMENTS & RESOURCES FOR DUE DILIGENCE AUDIT..X
3.5 SOURCE OF DATA AND LIMITATIONS …………………………………………………….X

4 BUILDING LIFE SAFETY ASSESSMENT – BCA AUDIT ……………………..X

4.1 BCA VERSION …………………………………………………………………………………………..X
4.2 BUILDING DESCRIPTION X
4.3 BCA COMPLIANCE – SITE ISSUES AND GENERAL BUILDING ISSUES ….X
4.3.1 Building Roof Area …………………………………………………………………………………..X
4.3.2 Building Basement Area……………………………………………………………………………X
4.4 BCA COMPLIANCE – XXX OCCUPIED LEVELS ……………………………………….X
4.4.1 Part B – Structure ……………………………………………………………………………………X
4.4.2 Part C – Fire Resistance……………………………………………………………………………X
4.4.3 Part D – Access and Egress ………………………………………………………………………X
4.4.4 Services and Equipment……………………………………………………………………………X
4.4.5 Part F – Health and Amenity…………………………………………………………………….X
4.4.6 Supporting Photos…………………………………………………………………………………….X

5 ESSENTIAL SAFETY MEASURES MAINTENANCE AUDIT……………….. X

5.1 ESSENTIAL SAFETY MEASURES LEGISLATION ………………………………………X
5.1.1 Fire XXXXXt ……………………………………………………………………………………………X
5.1.2 Building XXXXXXXXX ……………………………………………………………………………X
5.2 MAINTENANCE ISSUES …………………………………………………………………………..X
5.2.1 Adequacy of Maintenance………………………………………………………………………… X
5.2.2 Audit and Inspection Deficiencies ……………………………………………………………..X
5.3 LOGBOOK AUDITS …………………………………………………………………………………..X
5.3.1 Adequacy of Record Keeping……………………………………………………………………. X
5.4 FIRE DOOR COMPLIANCE ISSUES ………………………………………………………….X
5.4.1 Fire Door Compliance Deficiencies …………………………………………………………….X
5.4.2 Supporting Photos – Essential Safety Measures…………………………………………. X

6 BUILDING SERVICES, PLANT AND EQUIPMENT DUE DILIGENCE AUDIT ASSESSMENT ……….X

6.1 MECHANICAL …………………………………………………………………………………………..X
6.1.1 Description of Existing Services…………………………………………………………………. X
6.1.2 Heating and Cooling Systems …………………………………………………………………….X
6.1.3 Ventilation ……………………………………………………………………………………………….X
6.2 HYDRAULIC SERVICES …………………………………………………………………………….X
6.2.1 Water Supplies (General) ………………………………………………………………………….X
6.2.2 Domestic Water Supplies …………………………………………………………………………..X
6.2.3 Sanitary Plumbing and Sewer Drainage ……………………………………………………..X
6.2.4 Fire Hydrant and Hose Reel Installation/ Water Supply ……………………………..X
6.2.5 Gas Service ………………………………………………………………………………………………X
6.2.6 Supporting Photos – Fire hydrant services ………………………………………………….X
6.3 FIRE SPRINKLERS/ESSENTIAL SAFETY MEASURES………………………………. X
6.3.1 General …………………………………………………………………………………………………….X
6.3.2 Fire Sprinkler Installation ………………………………………………………………………….X
6.3.3 Supporting Photos – Fire /Essential Safety Measures …………………………………..X
6.4 FIRE SAFETY MEASURES AUDIT………………………………………………………………X
6.4.1 Fire Detection Equipment…………………………………………………………………………. X
6.4.2 Emergency Lighting………………………………………………………………………………… X
6.4.3 Warning Systems ……………………………………………………………………………………..X
6.4.4 Supporting Photos – Fire/ Essential Safety Measures…………………………………. X
6.5 ELECTRICAL ……………………………………………………………………………………………..X
6.5.1 General Observations ………………………………………………………………………………..X

7 DISABILITY DISCRIMINATION ACT (DDA) – DUE DILIGENCE AUDIT ……….X

7.1 ACCESSIBILITY AUDIT…………………………………………………………………………… X
7.1.1 General Observations/ Summary of findings ……………………………………………..X
7.1.2 Volume 3 – Accessibility Report Guideline………………………………………………… X

8 BUILT ENVIRONMENT RISKS – DUE DILIGENCE AUDIT ………………X

8.1 SITE ISSUES ………………………………………………………………………………………………X
8.1.1 Trips, Slips and Falls ………………………………………………………………………………….X
8.1.2 Emergency Procedures ……………………………………………………………………………..X
8.2 WORKPLACE ISSUES ………………………………………………………………………………..X
8.2.1 Built Environment for the General Workplace …………………………………………….X
8.3 HAZARDOUS SUBSTANCES ……………………………………………………………………….X
8.3.1 Storage………………………………………………………………………………………………………X
8.3.2 Supporting Photos – Built environment risks ………………………………………………X

APPENDIX A – DUE DILIGENCE AUDIT COMPLIANCE ……………………….X

APPENDIX B – MECHANICAL SERVICES ………………………………………………..X

APPENDIX C- ELECTRICAL SERVICES ……………………………………………………X

DUE DILIGENCE AUDIT VOLUME 2 …………………………………………………………X

DUE DILIGENCE AUDIT VOLUME 3 …………………………………………………………X


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1 HENDRY GROUP VERIFICATION – DUE DILIGENCE AUDIT

Document Issue: Building Compliance Assessment – Building Audit

Authorisation by:

Verification by:

Document Reference: XXXXXXXXX

Document: Building Compliance Due Diligence audit – Volume 1

Software: Microsoft Windows XP Professional

First Issue: XXXXXXXXX
This Issue: XXXXXXXXX
Revision: Rev X
Client: XXXXXXXXX

Project Co-ordinator: XXXXXXXXX
Editor: XXXXXXXXX

CONFIDENTIAL

This due diligence audit contains confidential material solely for XXXXXXXXX. All reasonable precautionary methods in handling the due diligence audit documentation and the information contained herein should be taken to prevent any third party from obtaining access. No responsibility is taken by Hendry Group for the use of this due diligence audit by any third party.

DISCLAIMER

The information contained in this due diligence audit is given in good faith, based on due diligence audit and site surveys and information provided to Hendry Group (XXX) Pty Ltd by site representatives. However, Hendry Group (XXX) Pty Ltd, their directors and/ or employees do not give any warranty for the reliability or accuracy of this information or accept any responsibility for errors or omissions in this due diligence audit, whether by negligence or otherwise.


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2 EXECUTIVE SUMMARY

2.1 Overview

Hendry Group (XXX) Pty Ltd has been engaged by XXXXXXXXX to provide a technical due diligence audit-building audit on numerous buildings located throughout Australia…

The following report covers an inspection carried out at the XXXXX in XXXXX. The due diligence audit inspection and documents reviewed on the site determine the buildings characteristics including the Building Code of Australia xxxx (BCA) compliance with regard to fire safety provisions, access and egress and health and safety. The report also covers essential safety measures, their maintenance and record keeping. Professional judgement has been used during our site inspection and in the formation of this report.

Individual plant and services including mechanical, hydraulic, electrical and fire safety systems in the due diligence audit have been inspected and visible important factors indicated. The due diligence audit also encompasses the Disability Discrimination Act (DDA) and Occupational Health and Safety (OHS) with regard to the built environment only and matters that include dangerous goods storage; and identifies within the building any hazards requiring additional fire safety precautions and investigations.

Review (due diligence audit) of the existing essential safety measures including provision of logbooks and maintenance carried out to determine current adequacy of fire safety installations maintenance. Several maintenance service records were available for inspection.

The due diligence audit provides an assessment of the building’s extent of compliance with the major deemed to satisfy clauses of the BCA, identifies significant departures and provides recommendations/ strategies which are considered appropriate. Additional investigations where warranted are also noted.

As a result of due diligence audit inspections and document review, the due diligence audit identified the following site wide issues that should be implemented:
• Disabled Access
• Lack of provision of maintenance schedules and programmes including also limited availability of services drawings.
• A system to ensure that fire doors are maintained and operational
• A system for housekeeping to ensure paths of travel are maintained.

A Due Diligence Audit Inspection of the site and review of documentation and logbooks show that the existing fire protection systems within the building as a whole appear to be of a reasonable standard.

All recommendations are detailed within the due diligence audit report, appendices and contained in the recommendation table which provides a summary of the principal aspects of BCA compliance, DDA and OHS issues. Details within the table highlight works for the building and recommended actions and include capital expenditure and operational expenditure and also highlight responsibilities. For a detailed explanation of these recommendations refer to the main body of the report.


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2.2 Regulatory Issues

This due diligence audit includes regulatory issues with regard to compliance with the BCA include items such as fire resistance levels within the fire stair and corridor areas, available egress at all times and compliant access for persons with a disability (reference to Section 7 and Volume 3 is essential for accessibility audit). It is important to note that obtaining evidence of approvals for the building is imperative to determine if existing non compliance issues form part of these approvals.

2.3 Essential Safety Measures

The due diligence audit reveals that the building appears to undergo regular levels of essential safety measures maintenance. The XXXXXXXX requires the XXXXX of the building to maintain all the essential safety measures and to record this maintenance for the annual fire safety statement. The annual statement was not viewed for this site. Assessment of logbooks indicates maintenance may not yet be certified to AS1851 – 2005 Maintenance of fire protection systems and equipment. The XXXXX have indicated that since the introduction of XXXXX, all buildings should be in a position to carry out maintenance contracts in accordance with the new standard by XXXXX.

2.4 Accessibility Audit – BCA/Disability Discrimination Act (DDA)

An obligation exists in all building to effect greater accessibility. The fact that previous works may have been carried out in compliance with Codes and Standards at the time of construction or fit out does not absolve building owners/operators from obligations under the DDA and current codes and standards.

As a result of the above, a due diligence audit of the disability access and facilities to and within the building was inspected at a number of varying levels based on risk. The accessibility due diligence audit can be reviewed in section 7 and Volume 3 of this report. A summary of findings is below.

What may be characterized in the due diligence audit as the most prominent deficiencies are:
1. Deficient wheelchair access to the main entry because of the outdoor eating area and the threshold step at the main doorway.
2. Doors to fire escape stairs that require too much force to open and that have no delayed closing action.
3. Absence of Braille and tactile signage throughout the XXXXX floors.
4. Kerb crossings at the street that prevent or impede wheelchair access.

2.5 Risk and OHS

A due diligence audit must allow for awareness with regard to changes to legislation relating to the safety of building occupants and visitors is essential. Owing to fire, asbestos contamination, storage and handling of dangerous goods, falling from heights and general occupational health and safety hazards, the building owner is required to take preventative measures to ensure an acceptable level of safety is maintained. The building owner needs to ensure the health, safety and amenity of relevant parties is not compromised.

It is noted in the due diligence audit that there were various chemicals and paints stored in the riser cupboards on each level. These should be removed and placed in a dedicated maintenance storage cupboard with appropriate Material safety data sheets.

All laboratories throughout the XXX Levels are computer laboratories and no hazardous substances were observed. An asbestos register for the building was not observed during the due diligence audit inspection. It is recommended that owner and occupier of the building comply with the requirements of the XXXXXXXXX by provision of a suitable asbestos register on site including procedure and policy for treatment of asbestos during any maintenance works.


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2.6 Reporting

The reports that form part of this entire due diligence audit report are:
Volume 1 – BCA Compliance Audit
Volume 2 – Essential Safety Measures Logbook
Volume 3 – Accessibility Audit – Due Diligence Audit

Each report contains associated appendices with photographic evidence and records

2.7 Recommended Works Summary

The following tables in the due diligence audit indicate the recommended works and associated costings as a result due diligence audit of the fire safety audit and risk assessment report. These recommendations in our due diligence audit report are separated into corresponding priorities that distinguish between mandatory and discretionary requirements. All mandatory recommended works must be implemented to achieve an acceptable standard of compliance.

In order to allocate priorities in a due diligence audit it is essential to consider the legislative requirements for the building. The regulations applicable to the building at the time of construction, governed the safety measures to be incorporated in the building. With the passage of time, the Building Regulations have substantially upgraded “active” requirements for new buildings of the same height and volume. It is paramount that an owner (in a due diligence audit) is aware of any difference between the existing situations and with the current BCA requirements. The XXXXX allows the XXXXX to inspect a building’s compliance and maintenance of fire safety systems at any time. Compliance with all of the current BCA requirements may be sought but rarely enforced, a compromise is usually agreed which offers a reasonable degree of safety for the occupants.

Alterations to the building also require careful analysis, as changes to the building’s classification and occupancy require certain deemed to satisfy standards to be implemented.

The items classified as mandatory in the due diligence audit recommendation table are mandatory in that current legislation would require these items to be included. If the municipal building surveyor for the local council was to perform a due diligence audit on the building these are the items that they would require to be brought into compliance. It would also be advisable for XXXXX to investigate if these items are required to be upgraded for insurance purposes.

The levels of priority in the due diligence audit for each recommendation are as follows:

Priority 1 Highest priority – includes mandatory items only - Within 1 year
Priority 2 Medium priority – includes discretionary items considered a higher risk - Within 2 years
Priority 3 Lowest priority – includes discretionary items considered a lower risk - From 2 to 5 years

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