What is the best report writer for the commercial inspections. Currently I am using 3D for residential.
I just got a call on a 63 unit apartment building in Fresno Ca. This is part of a real estate sale and they are requesting an inspection. I have done small commercial buildings, but nothing this big. Any suggestions on price quote by the square foot?
I bid on 81 blgs last week and got lowballed big time.
I would be around $7,500.00 but would scope out the work to not include the sprinkler, generator, and ADA. If I was to add those as well we would be closer to $9,700.00. One day job with report presented within 48 hours. Two men plus contractors for Sprinkler and Generator. Labor rate of 37%. I would be looking for about $4,500.00 profit.
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$400 base fee, plus 5 times what my system/component experts (roofer, electrician) charge me, plus my expenses…
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Do they want every unit checked or just a random few? I charge $75.00 per unit inspected. For the common areas it is $150.00 per floor. As for the heating and cooling it really depends what is there. My guess would be a central boiler and unit A/C. Chiller on the roof for the commons. Price accordingly or call in the professionals.
In the scenario Ben described, I would call in the professionals (HVAC, Electrical and fire suppression) to give an estimate on the inspection. I would double whatever they told me for cost. I would inspect the overall building envelope and structure. Cost would be $.05 a SQ/FT.
Everyone has to remember that we are generalists. Something like this takes a lot of time and knowledge to pull off. Lets the professionals do their job and you do yours. Your clients deserve it.
Ben …
Since Dec 29th of 2015 to Today we’ve done 41 Commercial Inspections, and lost about 18 that I know of cause their REA found them a newer home inspector with no commercial experience to do the job at maybe 40% less than the 2-3 experienced inspectors bidding it would charge. Commercial Inspections are NOT for a new inspector with no experience on BIG stuff (chillers, cooling towers, over 20 ton RTU’s; 3-phase electric out over 400amp with switch over generators, etc.
I do not count duplexes, 4-plexes, etc as commercial jobs. They have been your typical type commercial jobs … 3 auto dealerships; a glass manufacturing company; a Petco store; several restaurants; a couple of larger shopping centers (with 18-23 tenant businesses); funeral home; several light industrial manufacturing businesses; several hotels / motels; an airplane service center; a 5 bldg railroad car facility; a few out of business K-Mart or Sears stores; about 3 large church complexes; 2 schools; various 2-3 story office buildings; 3 older inner city small strip centers with 4-5 businesses down and apts on 2nd floor; two sets of 3 bldg / 8-plexes; commercial job types all across the board
The smallest job has been an out of business TGI Fridays. The largest combined job was … 3 attached buildings / 85-95 years old that were 41,000sf, 68,000sf and 84,000sf = 193,000sf of inspection.
My most complicated job in 2016 was a 76,000sf / 3-story / 12 yr old bldg used by a west coast based national testing service that had typical systems you’d expect for the size and age… 3 elevators / back-up generator with 700 gallon diesel twin tanks / 3-phase, 3,000amp, 480volt main electrical service … pad mounted transformer 750kva - 480 / 277volts; 3 cabinet switch-gear panels and 18 other panels throughout; Trane Rooftop Pkg Units (2-90 Ton & 1-40 Ton VAV-RTU Units with 1 Liebert 10 Ton Condensing Unit for the various Computer Rooms in the building; 2 Daiken Ductless 1.5 Ton Split System Heat Pumps for server rooms and elevator rooms … 8 restrooms (1 public, 1 CEO & 3 ea for men / women - multiple stalls, etc); 2 commercial kitchens; 5 different roof elevations and types; etc, etc.
My most complicated commercial job so far this year was a lakeside marina and UPSCALE restaurant that was in a resort type community built in the 1930’s with what we call RELAXED codes (if any) about 9,500sf. It had 9 different roofing types and materials; 3 commercial kitchens; 8 different HVAC types (Pkg RTU’s and split systems); 3 walk-in cooler or freezer condensors; back-up generator with 3 phase / 130kw / 120-208volts with change over panel; main service panel was 400amps / 240volt / 3-phase and we found at least 7 sub-panels AND saw 2 more we could not access due to storage racks in front of them. Many hoists, lifts, docks. fuel storage tanks; more extension cords inside and outside used for permanent wiring than I’ve ever seen anywhere. **Over 200’ of CSST outside run across roof-tops to get to HVAC Pkg units, etc MOST of which had the insulation worn off. **Two 100 gallon gas water heaters on floor in small rooms with no C/A right NEXT to spark ignitor **gas fired appliances. Many other specialized systems.
**The Marina I charged 22.5 cents p/sf.
The 3-story Bldg I charged 13.5 cents p/sf
I’ve used between 2 and 6 inspectors on each job
On the 3-story bldg … I used 5 inspectors + a commercial mechanical contractor + a commercial master electrician. We went in the front door at 8:30am and were done at about 1:20pm. Spent about 6.5 hrs on the report.
On the marina / restaurant I used 4 inspectors. All systems were done in-house. We started at 9:15am and were done by 12:50pm. Spent 8 hrs on the report
It sounds like pricing for commercial inspection does require a pre-walkthrough before you can give the client a fair quote which means costs involved that you won’t recover if your quote is not accepted. Commercial inspection sound a bit risky to me! Is it really worth the effort?
Never done a “Pre-Walkthru” with a customer. No time for that.
I tell them what we typically do … They say thats OK or NOT with them.
Then we get online and look at bldg with Google Earth; Realtors Brochure; etc
Then send a QUOTE that is a Range … At Least $$$$$, BUT not more than $$$
The bid range can be as little as $500 apart OR as much as $1,800 apart
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I am an experiences RHI, with a couple of years experience under my belt. I’m an industrial Electrician by trade, with 25 years heating and air conditioning on the side. So I’m far from blind walking into the commercial side of things.
I have a client with a single level shop, 5000 sq ft. maintenance facility, slab floor construction in a tin sided metal pre-fab building. Some small office space, mostly shop/wear house floor with some show room area. (typical kitchenette, and employee washrooms attached)
Where do I start with pricing? Just by the sq/ft ?
CCPIA has a Commercial Property Inspection Fee Calculator to help inspectors bid on jobs more accurately and efficiently. Here are instructions to help you get started:
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So, using Ben’s subject property in this thread, what “Bid” do you come up with for the job he posted??
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Light office: 16 to 20 cents a square foot depending on how much trouble it seems to be.
I find commercial clients looking to improve their properties to be wonderful clients. They care, and actually fix 80-90% of the stuff I call out.
We do commercial jobs, any where from 5000 sqft to 25000 sqft. That size i do myself. For 25000 sqft i charge like $2500 to $3000.
So much that is in commercial properties is from the individuals renting the property so investors not necessarily are looking at or care about all of it.
I’ve done many commercial inspections and the investors they’re all worried about the profit they can make.
In my reports I do go over all of the systems in the building how everything is broken up with utilities so who pays what. How well the buildings have been maintained so the investor knows how much money they have to put in right away.
I focus on the structure, exterior, roof, electrical, plumbing and HVAC systems.
My selling point to potential clients is that with my report they Will most likely get a credit that will cover my inspection fee. The highest credit I’ve gotten clients was close to $100,000!
Good to know the tenants are or were “Tripple Net” lease or not.
Triple Net Lease (NNN) renters pay for everything, and the chance of cheap disaster level repairs is far greater. Double the inspection cost for a NNN lease commercial building, or at least up it by 50%.
Bryce, how do you find out what repairs your commercial clients have made? I typically don’t even know if my clients went through with the purchase of the property afterwards.
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I signed an NDA and can’t talk details (even though the deal was eventually made), but I once saved a client round about a half a billion dollars, and the sellers absolutely lost their ----ing minds over it. Screaming over the phone - until they were hoarse - in a foreign language. Mad as all hell. My shining moment.
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It is a really good feeling.
I love hearing from my clients that the sellers were shocked and very impressed at the depth of my report.
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