Due diligence has been defined as “an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations.”
In terms of commercial property, due diligence could be applied prior to commencing building works, prior to signing a tenancy agreement, or prior to lodging a town planning application or building permit application.
A Due Diligence Report prepared by MAA could avoid an unnecessary situation that could result in loss of income, unexpected upgrade costs, or negative media attention.
Examples could include:
- Taking out a lease on a building, only to find that a passenger lift is required as part of the fit-out works.
- Applying for a building permit on a Class 2 residential apartment building, only to find that after two years in design and with town planning approval, that the design doesn’t comply with the BCA access provisions and needs an amendment to the planning approval.
- Opening a rooming house without the necessary Occupancy Permit, and being served a Building Notice by Council requiring disability access provided to and within the existing building.
These are all real-world examples, that could have been addressed very early had someone suggested a design review by an Accredited Access Consultant from MAA.