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BY RITCHIE LIPSON, SENIOR COUNSEL, KASDAN LIPPSMITH WEBER TURNER LLP

Property Condition Assessments – Protecting the Biggest Assets

School projects are valuable resources and a significant
investment for any district and the community and taxpayers.
Construction defects in buildings, particularly enclosure
defects, such as roo ng, waterproo ng, fenestration, and cladding,
can reduce the value of a building, shorten its service life and limit
its ability to house intended functions.
A property condition assessment (PCA) is a useful tool to
understand defects and damage that can threaten a building’s
utility. Working with knowledgeable attorneys and consultants in
procuring and using a PCA is a useful way to preserve districts’
rights in protecting and, if necessary, remediating defects in an
existing facility.
is overview of PCAs should provide AASBO members with
the following:
• The range of scope for enclosure property condition
assessments (PCAs).
• An understanding of the typical information provided in
a PCA and the general
limitations of PCA reports. • A review of the site, structural frame and enclosure, roo ng,
• An overview of the Arizona Statute plumbing, HVAC, electrical, vertical transport, re and life safety
rights and recourse in of Limitations plus ADA/access.
the context of defects and If warranted by the ndings, a more detailed forensic
damage found in a PCA. and Repose investigation may be appropriate to invasively test and
• e ability to identify identify what construction standards have been violated and
ways to effectively NEGLIGENCE — 2 years to determine proper repairs. Standards include the building
and efficiently employ code, contracts, general conditions, speci cations, drawings,
THE JOURNEY CONTINUES attorneys and consultants BREACH OF CONTRACT — 6 years and referenced standards of the National Roo ng Contractors
to maximize the value of a
Association, Sheet Metal and Air Conditioning Contractors’
PCA. STATUTE OF REPOSE — 8 Years National Association, and Tile Council of North America.
With ASBAIT, Arizona school employees and their families can rely on the best A PCA is a review from substantial completion It is always important to conduct PCAs at the direction of
healthcare at affordable prices—for 37 years and counting! of the general overall counsel, as PCAs completed at the direction of the law rm
condition of the building, as well as any relevant construction are protected by the attorney-client privilege.
ASBAIT—raising the bar in 2018. documents and includes a sampling of interior and exterior Most important is to set up a regular investigative process
observations by the expert, a list of general property conditions, to protect the long-term value of assets, avoid unwanted
speci c repair and maintenance items, as well as an opinion of financial surprises, and pursue responsible parties for
probable cost. damages instead of at taxpayer expense.
Introducing the Banner|Aetna Joint Venture contractor, but other disciplines may be involved depending on the limited by statutes of limitations that depend on the type of
e PCA is generally completed by a forensic architect or general
e deadline to bring a claim for faulty construction is
ASBAIT members from schools within Maricopa and Pinal counties are now eligible complexity and issues faced by the building. PCAs should always claim. Many districts receive an express warranty in their
be completed to ASTM standards. ASTM standards, developed construction contract, which is usually limited to one or two
to be part of an exclusive, patient-focused healthcare program—the Banner|Aetna by the American Society for Testing and Materials International, years. However, there may be longer time frames in which
Joint Venture. This new care model empowers doctors and providers in your area, are documents developed through a structured consensus process to hold the builder accountable for faulty construction.
and provides greater effi ciency and affordability with each visit. It allows members that establish criteria for products, services, materials and systems e statute of limitations typically begins to run from the
discovery of the defect. Arizona also provides an outside
across 15 industries.
to build a deeper relationship with providers in the Banner Health Network system, ASTM standards require the expert to include: deadline date based on substantial completion called a statute
and puts the focus on the patient. ASBAIT members can experience medical care • A de nition of observed conditions – good, fair, poor. of repose.
that is proactive, not reactive. The Banner|Aetna Joint Venture focuses on wellness • A summary of the observed issues, but not technically.
• A review of the construction documents, certi cates of Richie Lipson can be reached at: rlipson@kasdancdlaw.com or
and managed chronic conditions before more serious issues can develop. occupancy, and any reported code violations. (866) 578-3328, ext: 317.

To learn more, visit www.asbait.org 33