What is Technical Due Diligence (TDD)?
TDD is the process of analyzing the technical value of any service, product, process, idea, or architecture. In real estate, it revolves around the built environment. Acquisitions in real estate are generally transactions of high stakes, which necessitate a disciplined TDD. A decent TDD aids investors outline critical issues in a project and help in diligent scrutiny. As a risk assessment tool, a TDD guides an investor on liabilities, obligations, contracts, and any other issues good/bad of a project—a well-reasoned TDD highlight both the positive and negative aspects of a project non judgementally.
My experience
Recently our experts got a chance to be a part of a TDD exercise done by our organization. The time frame was stringent, and the quantum of work was massive. We planned the TDD framework meticulously, as the project of this magnitude required us to be exceptionally precise. We left no stone unturned to get all the information available for evaluating and analyzing the technical aspects of these properties.
Under the guidance of Jatin Shah, Managing Director, TDD (India), and Jayant Vaitha, head of design services at Colliers, we managed to pull off the whole project and submitted the comprehensive reports within the given time frame. Not only did we conduct thorough research, but we ensured their confidentiality. Our team of experts was available at all times to support stakeholders throughout the process.
My experience on this project was unique. As a designer, I have always designed spaces for the human experience. My goal has been functionality and aesthetical design, but this was the first time I experienced what it requires for a building to run and function successfully. During site visits, I got a chance to audit all the services with our MEP experts. We did a thorough check on all the MEP-related equipment and machinery, façade, architecture, and structure. We also studied if the building followed all the fire norms at the time of construction and still holds 100% fire safety standards as per the current bylaws. The facility management team of the building from the client-side was accommodating during the whole exercise. They were present with us while we surveyed the building and patiently responded to all our queries by providing us with the necessary technical details. I also understood the nuances of legal documentation, including the pre and post approvals. While going through all the approvals, I noticed that even a tiny deviation in the areas, number of rooms, or floors across the documents could be a severe issue in the future, requiring legal corrections. Thankfully the stakeholders were very supportive of our TDD assessments.
In one of the first meetings when our directors were assigning us on this project, we were constantly reminded about this project's confidentiality. Time and again, the Non-Disclosure Agreement (NDA) clauses were reiterated.
The whole process started with a simple risk assessment checklist of required information and documentation. The document list was exhaustive, consisting of pre and post-approvals, DBRs, AutoCAD drawings, survey maps, area diagrams, etc. We deep-dived into details which led to a complex and careful understanding of the asset. We analysed these documents to check the property life cycle, acquisitions, occupancy, practical limitations, the extent of liability, to name a few. This was an enriching experience since a lot of information has to be literally dug up.
We were preparing reports based on internal discussions and review meetings by assessing the properties from the initial site visits. Some of the sessions were off the clock, but it was all required to achieve exemplary TDD of this project's scale. As and when needed, we were present with all the information at the client office or online meetings. Seeing my seniors handling the task and giving spontaneous resolution to specific issues during the TDD was commendable. I admire the depth of knowledge related to architecture and advisory services that they possess.
Our role was not only limited to audit but also to investigate the prospects of the property and its growth and submit solutions to stakeholders. This kind of assessment helps the client understand the USP of the property. Our team presented the findings in a detailed manner, including documentation, architectural charts, scalability, performance indicators, etc. Based on results and stakeholder's responses, I can proudly say that our team has done a great job. We worked together as a team, and the brainstorming sessions left us craving for more.
With this, I would sincerely like to thank my whole team for providing the opportunity to work on this specific and wonderful project.
How to do a TDD?
Connect with our TDD experts who collaborate, invest in relationships, and always do what's right for our clients.
About me
Puneet Sharma is a senior architect with the Design Services team of Colliers. An experienced architect with over 12 years of work experience in the commercial and residential industry. Speak to me today to see what could be.
