What is a PCA?

A property condition assessment (PCA) is the process of observing a subject property, holding interviews and reviewing the documents at hand, to form an opinion and write a property condition report (PCR) (E2018-24, 3.2.44). ASTM E2018-24 gives a framework for doing it at commercial real estate: a walk-through survey of the primary improvements, backed by research (E2018-24, 1.1). The goal of its baseline process is to find material physical deficiencies and tell the user about them (E2018-24, 1.1.1). The PCR draws together what the survey found and what the documents and interviews showed, and it carries opinions of cost for suggested remedies of the physical deficiencies observed (E2018-24, 1.1.4).

What it looks at

Primary improvements. The structures, site work, building systems and components that matter most to the subject property, leaving out support buildings such as maintenance sheds, guard booths and pool equipment houses (E2018-24, 3.2.43).
Commercial real estate. Improved property in commercial use, such as industrial, retail, office, hospitality, medical or educational property, and residential property with more than four units or run for profit, but not four or fewer units used only as homes (E2018-24, 3.2.12).
One parcel, one moment. The PCA is about the condition of the primary improvements on one particular parcel, so it leaves aside economic obsolescence, buying a business entity, and deficiencies tied to conditions off the site (E2018-24, 4.2.2). A user should rely on the PCR only for the time its observations and research were made (E2018-24, 4.2.1).
The objective. The user should set out what the PCA is for and agree with the consultant how to shape the scope to it; unless the PCR notes otherwise, the objective is taken to be finding physical deficiencies in support of carrying on the current use, with no plans to rehabilitate the property, change its use or otherwise alter it (E2018-24, 5.1).

The baseline and its four components

The baseline is the least amount of observation, due diligence, research, document review and cost opinion that the guide recommends to meet its intent (E2018-24, 3.2.6). The guide recommends four components (E2018-24, 6.2):

Document review and interviews (E2018-24, 8).
A walk-through survey: nonintrusive observation of improvements that are readily accessible and observable (E2018-24, 3.2.65). The guide does not expect more than one site visit (E2018-24, 9.2).
Opinions of cost to remedy physical deficiencies (E2018-24, 10).
The PCR (E2018-24, 11).

What one component turns up may call for more from another, or change the opinions of cost (E2018-24, 6.3.1). Representative observations cover repeated items such as HVAC units, windows and toilet rooms; surveying each one is not expected (E2018-24, 6.4.4).

Who does the work

User: the person or organization that hires the consultant (E2018-24, 3.2.64).
Consultant: the entity or individual the user contracts with, responsible for completing the guide's tasks (E2018-24, 3.2.14). If the consultant or its people are employees or a subsidiary of the user, the guide recommends saying so in the PCR's Executive Summary (E2018-24, 7.3).
Field observer: the individual who does the walk-through survey (E2018-24, 3.2.25). For most commercial real estate, the guide expects one person with a broad, general knowledge of the relevant systems and components; adding specialists is for the user and consultant to decide together before the engagement (E2018-24, 7.2).
PCR reviewer: the individual who has responsible control of the field observer and checks the PCR before the user receives it (E2018-24, 3.2.38). One person may fill both roles, and should then say so and sign the PCR as having done both (E2018-24, 7.6).

Parts of the work may fall to the consultant's staff or to outside contractors it engages (E2018-24, 6.4.1). The guide says the field observer's and PCR reviewer's qualifications are critical, and recommends that each PCR carry a statement of both people's qualifications as an exhibit (E2018-24, 7.1, 11.9). Its nonmandatory appendix recommends the user look for a PCR reviewer with an architecture or engineering designation, or with fitting construction experience or certifications (E2018-24, X1.1.2.2). Neither the survey nor the review of the PCR is meant to be the practice of architecture or engineering, and an architect or engineer in either role is not meant to have to sign or seal the PCR as such (E2018-24, 7.7).

What a PCR is

A PCR is a written report, prepared along the guide's recommendations, that records the findings and opinions reached in the PCA (E2018-24, 3.2.45). The guide sets no particular format; the user and consultant settle it (E2018-24, 11.1).

Voluntary, and not free of uncertainty

The guide sets out a reasonable baseline process meant for voluntary use, and does not imply that a PCA must follow it to have been done in a commercially prudent and reasonable way (E2018-24, 4.1). As an ASTM guide it presents options and prescribes neither the scope nor a course of action (E2018-24, 3.2.27, 4.1). Users differ in objectives, risk tolerance, schedule and budget, so a broader or narrower assessment may suit them (E2018-24, 4.1). The purpose, the property type, the age of the improvements, the user's expertise and risk tolerance, and the time available all bear on how much assessment a property warrants (E2018-24, 4.3.5).

The guide says its baseline process carries a moderate level of uncertainty (E2018-24, 4.1). No PCA removes all uncertainty about physical deficiencies or how systems will perform; a PCR is meant to reduce it, and opinions on workmanship, installation quality and remaining useful life are subjective by nature (E2018-24, 4.3.1). The PCA is not technically exhaustive, because past some point more information costs more time and money than it is worth (E2018-24, 4.3.3). The consultant offers an opinion only; the PCA is no warranty or guarantee of the property's condition now or later (E2018-24, 12.2). PCAs are typically done for the use of the contracting parties, who may extend use or reliance to others by mutual agreement (E2018-24, 4.2.4).

This page is general reference. It does not assess any property. ASTM E2018-24 is the standard and is not reproduced here; the judgment of the consultant on the facts governs.