Potential Savings From an Energy Audit

Efficient use of resource reap big returns. Assessments like building condition surveys, ESA and physical needs assessments guard for the future and tell a business owner how to make his or her building run more efficiently.

The same goes for energy. By taking efforts to reduce energy use, you can save at least hundreds of dollars a year. After an energy audit, businesses often save anywhere from 15 to 40 percent on energy costs. That's a lot of money to be saving every year. On top of the savings you'll naturally get from performing an energy audit, you can also save money on the actual repairs.

With President Obama's recently approved American Recovery and Reinvestment Act of 2009, you can be reimbursed up to $6,500 for efficiency repairs. On top of that you can get an energy audit done on the cheap with a tax credit.

What Is an Energy Audit

Smart use of energy is a hot topic right now. Everyone from car producers to big-time companies have invested in using energy more efficiently. Have you? Taking small steps can help bring you closer to efficient energy use, and a good place to start is with an energy audit. An energy audit can tell you how you're using energy and how you can do it more efficiently. You can't start remedying the problem unless you know what it is. Services included in an energy audit often include an evaluation of all mechanical, electric and fuel-powered equipment.

The scope of the evaluation depends on not only the size of your property, but the depth you are looking for and the money you are willing to pay. It can take anywhere from one day to a month to complete an evaluation and write up a report on your energy use. Most evaluations include a walkthrough and an in-depth report on how you can save money by tweaking your equipment and how you use it.

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Why Evaluate Your Building?

When looking to purchase a commercial property, there are a lot of things to keep in mind. The safety of the people inside, costs and how efficient your building runs are just a few. All of these are important issues. But sometimes they are abstract, and it can be difficult to pinpoint how you, as a property owner, are doing in regards to these issues. A good way to help quantify where you're at in the process of safety, cost and efficiency is through evaluation.

Evaluations take many many forms. It can be through a building condition survey, physical needs assessment, Environmental Safety Assessment and more. Though it may not be required to complete all of the possible inspections and assessments out there, it's recommended that a potential commercial property owner take due diligence and make sure his or her building is in tip-top shape a) before he or she purchases it and more importantly b)before anyone steps inside.

Due Diligence and How It Relates To You

Buying and readying property can be a headache. There seems to be an endless checklist of to-dos: building condition surveys, ESAs, inspections, etc. and not very much time to actually do them. The precautionary steps that a business owner takes before and after purchasing a property often fall under the broad term of due diligence. This is a phrase often tossed around in the inspection world that means before you buy you should strive to confirm all facts before you invest.

Often encompassed under due diligence are environmental assessments. Due diligence is not just a concept that will ensure a purchaser a peaceful mind, it is also becoming more demanded by the people who dole out the money: banks. Banks want to see that you used a reputable firm when undergoing assessments, such as an ESA. If their prospective client is not fulfilling the necessary due diligence, they most likely will not invest in the company in the form of a loan.

Environmental Site Assessment

Along with a building condition survey, an Environmental Site Assessments is another step that you potentially have to undertake when purchasing real estate. Like other types of surveys and assessments, an ESA is a part of a buyer's responsibility to respect environmental due diligence. An ESA is typically conducted prior to purchasing or financing and determines potential or existing environmental liabilities. By conducting this assessment, the buyer can reduce his or her liability. An ESA can encompass one or two phases. The first phase focuses on the land and potential environmental issues. It can examine the potential for soil contamination, groundwater quality, surface water quality, inventory of hazardous materials kept on site, assessment of mold and mildew, etc. It never includes the collection of sample nor chemical analysis. If during the assessment an environmental issue arises, the company may have to continue onto phase two or three.

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Physical Needs Assesment

Like a building condition survey, getting a physical needs assessment is a wise move for any commercial building owner. Just like other property services, a PNA is another way to ensure that your property is up to date and in shape. A PNA will help building owners improve an existing property's aesthetics and building-code agreement. It can shed light on potential issues that might end up causing trouble in the long run. Depending on the type of PNA requested, a professional can just evaluate the exterior or common areas, or he or she could evaluate building components, deficiencies, regulations, structural systems, appliances and more. The process can include interviews, research, site investigation analysis and an in-depth report on the findings. The form a PNA takes can vary significantly from property to property, but the goal of of a PNA is to evaluate a property's physical condition and what it might need in the future.

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When Should You Get a Condition Survey?

A building condition survey can be useful at multiple steps in the ownership of a commercial space. If you're looking to buy a building, getting an assessment of the space prior to signing can give you a clear view of how much work and money will go into repairing and getting things up to code. It's always a good idea to have someone check it out before the defects liability period (DLP) expires. This is typically within 18 months of vacancy for residential and 12 months from the date of possession of commercial buildings. By doing it early on, your liability for repairs is lessened.

If you already own a building and are thinking about getting a condition survey, take a look around your space. Are there any defects like cracks, water seepage, issues with the foundation? Even small problems are worth checking out. Those often times are only the tip of the iceberg.

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