Table of Contents

1.1  The purpose of this document is to define good practice and to establish a reasonable approach for the performance of an inspection of a commercial property.

2.1  Core definitions

2.1.1  Commercial Property -  A commercial property is defined as the building structures and improvements located on a parcel of commercial real estate.  These may include structures such as buildings with residential units operated for profit, mixed use buildings, strip malls, motels, factories, storage facilities, restaurants, and office buildings.

2.1.2  Inspection - The inspection is defined as the process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector.  A commercial inspection requires the inspector to make observations, conduct research, and report findings.

2.1.2.1  Observations - Observations are defined as those potential items of interest noted by the inspector during the walk-through survey portion of the inspection.

 

2.1.2.2  Research - Research is defined as the process of gathering information through document review and interview to augment the observations made during the walk-through portion of the inspection.  This research may include reviewing readily available documents such as previous inspection reports, building permits, code violation notices and environmental studies. This research may also include interviews with readily available personnel such as building managers, tenants and owners.

 

2.1.2.3  Report - An inspection report is defined as a written communication describing the issues discovered from observations made and research conducted by the inspector that are, in the inspector's opinion, are likely to be of interest to his/her client.  A report may contain photographs of observations made during the walk-through survey portion of the inspection and/or copies of documents reviewed during the research portion of the inspection.

2.2  Terminology commonly found in commercial property inspection reports.

• Accessible: Can be approached or entered by the inspector safely, without difficulty, fear or danger.
• Accessibility: Level of access a building offers people with disabilities.
• Activate: To turn on, supply power, or enable systems, equipment, or devices to become active by normal operating controls. Examples include turning on the gas or water supply valves to fixtures and appliances or activating electrical breakers or fuses.
• Actual Knowledge: The knowledge possessed by an individual as opposed to that discovered through document review.
• Adverse Conditions: Conditions that may be dangerous for the inspector and may limit the walk-through survey portion of the inspection.
• Adversely Affect: To constitute, or potentially constitute, a negative or destructive impact.
• Alarm System: Warning devices, installed or free-standing, including but not limited to: carbon monoxide detectors, flue gas and other spillage detectors, security equipment, ejector pumps and smoke alarms.
• Approved: Acceptable to the authority having jurisdiction.
• Appliance: Utilization equipment, generally other than industrial, that is installed or connected as a unit to perform one or more functions.
• Arc-Fault Circuit Interrupter: A device intended to provide protection from the effects of arc faults by recognizing characteristics unique to arcing and by functioning to de-energize the circuit when an arc fault is detected.
• Authority Having Jurisdiction (AHJ): An organization, office, or individual responsible for enforcing the requirements of a code or standard, or for approving equipment, materials, an installation, or a procedure.   The AHJ is often the building owner, health department, insurance agent, or fire marshall.
• Bonding: The permanent joining of metallic parts to form an electrically conductive path that ensures electrical continuity and the capacity to conduct safely any fault current likely to be imposed.
• Branch Circuit: The circuit conductors between the final overcurrent device protecting the circuit and the outlet(s).
• Building Code: Rules and regulations adopted by the governmental authority having jurisdiction over the construction and/or  remodeling of the commercial property.
• Building Department: Local authority having jurisdiction over the construction, alteration, and use of a property.
• Building Envelope: The enclosure that defines the heated/cooled area of a building, namely the exterior walls and roof.
• Building systems: Components, assemblies and systems which are a part of the overall building and property such as pavement, flatwork, structural components, roofing, exterior walls, plumbing, HVAC, electrical components, fire prevention, etc.
• Client: The party that retains the inspector and pays for the inspection.
• Commercial Property: The building structures and improvements located on a parcel of commercial real estate.  These may include structures such as buildings with residential units operated for profit, mixed use buildings, strip malls, motels, factories, storage facilities, restaurants, and office buildings.
• Component: A permanently installed or attached fixture, element or part of a system.
• Concealed: Rendered inaccessible by the structure or finish of the building.  Wires in concealed raceways are considered concealed, even though they may become accessible by withdrawing them.
• Condition: The visible and conspicuous state of being of an object.
• Consultant: A person with particular expertise in a subject who assists the inspector with portions of the inspection.
• Crawlspace: The area within the confines of the foundation and between the ground and the underside of the lowest floor structural component.
• Decorative: Ornamental; not required for the operation of essential systems and components of a building.
• Deferred Maintenance Items: Deficient items that cannot be remedied with routine maintenance, generally caused by neglect.
• Describe: To report in writing a system or component by its type, or other observed characteristics, to distinguish it from other components used for the same purpose.
• Determine: To arrive at an opinion or conclusion pursuant to examination.
• Dismantle: To open, take apart or remove any component, device or piece that would not typically be opened, taken apart or removed by an ordinary occupant.
• Due Diligence: A level of care in the inspection process which varies depending upon the scope of work agreed upon by the inspector and his/her client.
• Easily Visible: Describes systems, items, and components that are both conspicuous and in plain sight, absent of the need for intrusive inspection techniques, probing, disassembly or the use of special equipment.
• Engineering Service: Any professional service or creative work requiring engineering education, training, and experience and the application of special knowledge of the mathematical, physical and engineering sciences to such professional service or creative work as consultation, investigation, evaluation, planning, design and/or supervision of construction for the purpose of assuring compliance with the specifications and design, in conjunction with structures, buildings, machines, equipment, works or processes.
• Enter: To go into an area to observe visible components.
• Evaluate: To assess the systems, structures or components of a building.
• Examine: To visually examine. See Inspect.
• Exposed: Capable of being inadvertently touched by a person because it is not suitably guarded, isolated, or insulated.
• Foundation: The base upon which the structure or wall rests; usually masonry, concrete, or stone, and generally partially underground.
• Function: The action for which an item, component, or system is specially fitted or used or for which an item, component or system exists; to be in action or perform a task.
• Functional: Performing, or able to perform, a function.
• Grounded: Connected to earth or to some conducting body that serves in place of the earth.
• Grounded, Effectively: Intentionally connected to earth through a ground connection or connections of sufficiently low impedance and having sufficient current carrying capacity to prevent the buildup of voltages that might otherwise result in undue hazards to connected equipment or to persons.
• Ground-Fault Circuit Interrupter (GFCI): A device intended for the protection of personnel that functions to deenergize a circuit.
• Grounding Electrode: A device that establishes an electrical connection to the earth.
• Immediate Cost: Estimated cost of remedying an existing safety hazard or repairing a system or component that will likely fail within a year.
• Inspected Property: The readily accessible areas of the buildings, site, items, components, and systems included in the inspection.
• Inspection: The process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector.  A commercial inspection requires the inspector to make observations, conduct research, and report findings.
• Inspector: One who performs the commercial property inspection.
• Installed: Attached or connected such that the installed item requires tool for removal.
• Interview: To discuss with those who have knowledge about the subject property.
• Normal Operating Controls: Devices such as thermostats that would be operated by ordinary occupants which require no specialized skill or knowledge.
• Life Expectancy: Average function time in years assuming regular maintenance.
• Listed: Equipment, materials, or services included in a list published by an organization that is acceptable to the authority having jurisdiction and concerned with evaluation of products or services, that maintains periodic inspection of production of listed equipment or materials or periodic evaluation of services, and whose listing states the either the equipment, material, or service meets appropriate designated standards or has been tested and found suitable for a specified purpose.
• Material: Having significant importance as in material defect.  This term is reserved for describing things of significant importance.
• Material Defect: A condition of a commercial property or any portion of it that would have a significan adverse impact on the value of the real property or that involves unreasonable risk to people on the property.  The fact that a structural element, system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system of subsystem is not by itself a material defect.
• Observations: Those potential items of interest noted by the inspector during the walk-through survey portion of the inspection.
• Observe: To see through visually directed attention.
• Obvious: A condition or fact not likely to be ignored or overlooked.
• Operate: To cause systems to function or turn on with normal operating controls.
• Panelboard: A panel including buses and automatic overcurrent devices designed to be placed in a cabinet accessible only from the front.
• Physical Deficiency: A major defect, a significant deferred maintenance item, a component or system that has exhausted most or all of its remaining useful life (regardless of its actual life expectancy), a safety concern, or anything that could potentially cause the need for an expensive repair.
• Publicly Available Information: Information that is accessible or available to anyone upon request.
• Raceway:  An enclosed channel or conduit designed expressly for holding wires or cables.
• Readily Accessible: Describes the area of the subject property that has been made available to the inspector at the time of the walk-through survey portion of the inspection, and/or an item or component if, in the judgment of the inspector, it is capable of being safely observed without the removal of obstacles, detachment or disengagement of connecting or securing devices, or other unsafe or difficult procedures to gain access and/or a document that has been made available to the inspector for use in the research portion of the inspection.
• Readily Ascertainable: Describes information that is available to the inspector within reasonable time at a nominal cost so that it can be practically reviewable during the research portion of the inspection.
• Readily Available: Describes the information, personnel, and documents that are made available quickly to the inspector.
• Receptacle:  A contact device installed at the outlet for the connection of an attachment plug. 
• Recreational Facilities: Spas, saunas, steam baths, swimming pools, tennis courts, playground equipment, and other exercise, entertainment or athletic facilities.
• Remaining Useful Life: A subjective estimate or guess made by the inspector based upon his observations and experience as to the number of remaining years that a component will be functional before needing replacement.
• Report: The written communication describing the issues discovered from observations made and research conducted by the inspector and which, in the inspector's opinion, are likely to be of interest to his/her client.  A report may contain photographs or digital images of observations made during the walk-through survey portion of the inspection and/or copies of documents reviewed during the research portion of the inspection.
• Representative Number: A sufficient number to serve as a typical or characteristic example of the item(s) inspected.
• Research: The process of gathering information through the review of documents and interviews to augment the observations made during the walk-through portion of the inspection.  This research may include reviewing readily available documents such as previous inspection reports, building permits, code violation notices and environmental studies.  This research may also include interviews with readily available personnel such as building managers, tenants and owners.
• Scope of Work: Work that deviates from this standard depending on budget, time constraints, purpose of the inspection, age of the subject property, and risk tolerance of the client which the inspector and client have agreed to.
• Short Term Cost: Estimated cost of repairs which may not require immediate attention, but which should not be delayed for more than 2 years.
• Shut Down: Turned off, unplugged, inactive, not in service, or not operational.
• Special Consultant: A person with particular expertise in a subject who assists the inspector with portions of the inspection.
• Standard: Often used to mean InterNACHI' Standards of Practice for Inspecting Commercial Properties.
• Structural Component: A component which supports the building's dead and live loads.
• Subject Property: The commercial property that is the subject of the inspection.
• Suggested Remedy: An opinion offered as to a course of action to repair a deficiency.  Suggested remedies are outside the scope of a commercial inspection.
• System: An assembly of various components which function as a whole.
• Technically Exhaustive: A comprehensive and detailed examination beyond the scope of a commercial property inspection which might involve, special equipment, meters, scaffolding, dismantling, probing, testing, or troubleshooting.
• Timely Access: Access to the subject property and documentation required by the inspector to perform the inspection.
• Unsafe: A condition of an area, system, component, or procedure which, in the inspector’s opinion, poses a significant risk to the personal safety of either the occupants and/or him/herself. The danger to the occupants may be due to damage, deterioration, improper installation, a change in accepted standards, etc. The danger to the inspector may be due to electrical, fuel, height, sewage, water, debris, weather or other environmental conditions, and may restrict his/her access and limit or prevent the inspection. 
• Verify: To confirm or substantiate.
• Visible: That which may be easily observed during the walk-through survey portion of the inspection.
• Walk-Through Survey: That portion of the inspection where the inspector makes non-intrusive, visual observations of readily accessible areas of the subject property.

2.3  Common abbreviations and acronyms used in commercial property inspection reports.

• ADA: Americans with Disabilities Act (US).
• AHJ: Authority having jurisdiction.
• BUR: Built-up roofing.
• CMI: Certified Master Inspector.
• CO: Certificate of occupancy.
• COMSOP: Commercial Standards of Practice.
• CSA: Canadian Standards Association.
• EIFS: Exterior insulation and finish system.
• EPA: Environmental Protection Agency (US).
• HVAC: Heating, ventilation and air conditioning.
• IAC2: International Association of Certified Indoor Air Consultants.
• IAQ: Indoor air quality.
• InterNACHI: International Association of Certified Home Inspectors.
• ICC: International Code Council.
• IR: Infrared.
• MICB: Master Inspector Certification Board.
• NEC: National Electric Code (UK).
• NFPA: National Fire Protection Association.
• PE: Professional Engineer.
• RICS: Royal Institute of Chartered Surveyors (UK).
• RUL: Remaining useful life.

2.4  Other inspection related terms

Other inspection related terms can be found by visiting InterNACHI's searchable online Glossary at www.nachi.org/glossary.htm

3.1  Royalty-free use

Although this standard is protected by copyright and other laws, the International Association of Certified Home Inspectors (InterNACHI) hereby grants non-exclusive, royalty-free license to all members of InterNACHI and their clients and all public authorities, government agencies and government employees throughout the world to use this code as desired including making copies, posting, transmitting, and incorporating into reporting software, free of charge, without the need for pre-approval, provided that each use is clearly attributed to InterNACHI. 

Acceptable examples of attribution include "performed in accordance with InterNACHI's Commercial SOP," "based on InterNACHIcomsop-2008" or "see www.internachi.org/comsop." 

Nothing in this license shall preclude InterNACHI from modifying this standard and users should regularly check for the latest revision at www.nachi.org/comsop.htm which supersedes earlier versions.

3.2  Disclaimer of liability

InterNACHI administers the process in the development of its standards.  InterNACHI does not independently test, evaluate, or verify the accuracy of any information or the soundness of any judgments contained in its standards.  InterNACHI disclaims liability for any personal injury, property or other damages of any nature whatsoever, whether special, indirect, consequential or compensatory, directly or indirectly resulting from the publication, use of, or reliance on this document.  InterNACHI also makes no guaranty or warranty as to the accuracy or completeness of any information published herein.

Anyone using this document should rely on his or her own independent judgment or, as appropriate, see the advice of a competent professional in determining the exercise of reasonable care in any given circumstances.

4.1  Objective

The objective of an inspection is to provide written communication describing the issues discovered from observations made and research conducted by the inspector and that, in the inspector's opinion, are likely to be of interest to his/her client.

4.2  Who may perform the inspection. 

Any portion of the inspection including the walk-through survey, research, and report generation may be performed by the inspector, his/her staff, or any consultant hired by the inspector.  This standard recognizes that for the majority of commercial inspections, the inspector is likely an individual with a general, well rounded knowledge of commercial properties and that the inspector or client may want to augment the inspector's skills with specialty consultants who have particular expertise in certain areas.  The decision to hire specialty consultants will of course rely on budget and time constraints as well as the risk tolerance of the client. 

4.3  Varying levels of due diligence

This standard is designed as a baseline from which the inspector and client can develop and agree to a scope of work that may deviate from this standard depending on budget, time constraints, purpose of the inspection, age of the subject property, and risk tolerance of the client.  The level of due diligence should be set where the cost, in time and money, of acquiring information about the subject property will not likely exceed the value of that information.   Therefore an inspection performed in accordance with this standard will not be technically exhaustive. 

 

4.3.1  Sample language for use when defining the scope of work

"The inspection will be performed in accordance with InterNACHIcomsop-2008 except that... "

4.3.2  Representative observations

In recognizing that the client likely has the goal of acquiring information about the subject property at a cost, in time and money, that does not exceed the value of that information, representative observations are not just permitted by this standard, but recommended as well.

4.4  Uncertainty

The client should understand that no inspection report is completely accurate.  A report is only the written communication of the observations made and research conducted by the inspector.  The report contains those items which in the inspector's opinion are likely to be of interest to his/her client. 

4.5  Subjectivity

The client should understand that the inspection report is, to a large degree, the subjective opinions of the inspector based on his/her observations and research within the limits of access, time, and budget and without the aid of special equipment or meters and without  dismantling, probing, testing, or troubleshooting and without detailed knowledge of the commercial property, its components or its systems.  The inspection report is not much more than a subjective professional opinion. 

4.6  Not an architectural or engineering service

An inspector performing a commercial inspection in accordance with this standard is not practicing architecture or engineering.   

4.7  Not a warranty, guarantee or insurance policy

The inspection is not a warranty and the inspection report is merely the written communication of the inspector's subjective opinion on the condition of the subject property.

5.1  Objective

The objective of performing research  including the review of documents and interviews is to augment the information obtained in walk-through survey and to provide supporting documentation to the inspection report. 

5.2  Document procurement

It is the client's responsibility to obtain copies of all documents and provide them for the inspector.  These documents are most often obtained from the seller or from local government offices.  The inspector is not responsible for gathering or paying for copies of appropriate documents to be reviewed unless these tasks are specifically assigned to the inspector in the scope of work agreement.

5.3  Documents to be reviewed and included in the inspection report

The inspector should review all documents provided by the client and owner.  The inspector should also make an inquiry and review of any other documents can be reasonably ascertained on-site or from the building owner or manager such as certificates of occupancy, building code violation notices, repair invoices, and warranties.  The inspector is not