Engineering Report (ER)

We prepare engineering reports required for real-estate transactions.

In real estate transactions, the procedures to make a proper evaluation of real estate property is called due diligence, and the report that summarizes the investigation results of its physical situation, among others, is the engineering report.
The purpose of ER is to understand the risks that might have adverse effects on cash flow, and ER is becoming more and more important in asset securitization market in Japan. By making excellent use of the data and knowhow accumulated in building management and operation, we provide realistic and highly objective ERs to our clients.

Nippon Kanzai’s ER

  • Engineers with expertise are in charge of examination and analysis.
  • Building condition survey, building environmental risk assessment, seismic risk assessment, and soil pollution risk assessment are available.
  • As we pick out architectural assets and equipment to link with a repair plan, observation comments and attach pictures for each item, we can provide practical reports that can be used for future maintenance and management.
  • We also verify objectivity and validity of the developed repair plan with our database.
  • Promptly respond to any kind of the buildings (e.g. office building, condominium, commercial building, hotel, complex building), of any scale, location, and whether it is completed or being developed.

Main items on engineering reports

①Visual inspection of buildings and equipment for deterioration and defect (inspection of as-built drawings, site investigation)
②Repair and refurbishment cost (calculation of urgent/short-term repair cost and long-term repair cost)
  • Planned periods for repairs are mostly around 12 years.
③Assessment of seismic risk
  • Level 1 to Level 3 (judgement on earthquake resistance and calculation of PML value, etc.)
④Examination of compliance (e.g. compliance with laws and regulations)
  • Check the construction background based on the written application for confirmation and inspection certificate.
  • Check the consistency with the site situation using drawings attached to the written application for confirmation and the completion drawing.
  • Check whether legal inspections are implemented or not
⑤Calculation of current replacement cost (construction cost required if it is rebuilt today)

Environmental examination

①Inspection for asbestos (inspection for toxic substances and PCB, etc.)
②Contamination survey of soil and underground water (survey of contamination by heavy metal and chlorinated organic compound)
  • Phase 1 (geography and history survey)
  • Phase 2 (sampling survey)
  • Phase 3 (boring exploration)