What's in a Technical Due Diligence Report? Sections, Ratings & CAPEX
You’ve commissioned a technical due diligence survey — or one’s just landed on your desk — and now there are 40-odd pages of surveyor findings to turn into a decision.
So what’s actually in a TDD report, how do the ratings and costs work, and how do you know yours is any good?
Here it is, section by section, with a checklist of what yours should cover.
Key takeaways
- A TDD report is the deliverable from a technical due diligence survey — a structured assessment of a commercial building’s condition, risks and future costs.
- It follows the RICS TDD standard and uses a traffic-light (RAG) rating so risks are visible at a glance.
- The two parts buyers use most: the executive summary and the CAPEX schedule (costed short/medium/long-term spend).
- Scope runs from structure and M&E to fire safety, asbestos, and energy (EPC/MEES) compliance.
- Use the checklist below to see what a thorough TDD should gather and inspect.
What is a technical due diligence report?
A technical due diligence report is the written output of a technical due diligence survey — a chartered building surveyor’s structured assessment of a commercial property’s condition, risks, compliance and likely future costs, prepared so a buyer, occupier or lender can make an informed decision before committing.
It’s not a pass/fail certificate. It’s a risk document: it tells you what state the building is in, what could cost you money, and what to do about it — written to the RICS professional standard on technical due diligence.
What’s in a TDD report — section by section
A TDD report works from a high-level summary down into each building element and its risks, then out to costs and conclusions. The typical structure looks like this:
| Section | What it covers |
|---|---|
| Introduction & scope | Reason for the survey, address, instructing party, documents reviewed, and the limitations and assumptions. |
| Executive summary | The headline findings and RAG ratings — the part most people read first. |
| Property description | Location, type, construction, use class and layout, element by element. |
| Structure & fabric | Condition of walls, roofs, floors and load-bearing elements, with a risk rating. |
| Building services (M&E) | Heating, ventilation, electrics and lifts — condition and remaining life. |
| Health, safety & statutory compliance | Fire safety, Building Regulations, access and CDM matters. |
| Energy & sustainability | EPC rating and MEES compliance — a lettability risk if poor. |
| Deleterious & hazardous materials | Asbestos and other materials of concern. |
| Legal & title interface | Technical issues touching title, boundaries or third-party rights. |
| Recommendations & further investigation | Where intrusive checks or specialist input are advised. |
| Estimated costs (CAPEX) | Costed short, medium and long-term expenditure for your model. |
| Conclusion & suitability | The surveyor’s overall opinion for your purpose. |
| Appendices | Photographs, plans, EPCs and supporting documents. |
How the traffic-light (RAG) ratings work
The RICS standard uses a traffic-light (RAG) system so you can gauge the relative importance of issues at a glance — before reading a word of the detail.
Red
A significant issue — urgent, costly, or a barrier to the deal. Needs action, a price adjustment or specialist input before you commit.
Amber
A moderate issue to monitor — not critical today, but plan and budget for it over your hold period.
Green
Satisfactory — in reasonable condition for its age and use, with no immediate concern.
The CAPEX schedule — the number that matters
If the RAG ratings tell you what’s wrong, the CAPEX (capital expenditure) schedule tells you what it costs. A good TDD sets out expected spend across short, medium and long term — so you can see not just today’s repairs but the roof, plant or cladding replacement waiting three, five or ten years out.
This is the part buyers lean on most: it turns ‘the building needs work’ into a number you can drop into your financial model, use to renegotiate the price, or budget for after completion.
How to read (and use) your TDD report
You don’t have to read a TDD cover to cover to get the value from it. Work it like this:
• Start with the executive summary and the reds. They’re the deal-shaping items.
• Check the assumptions and limitations. What couldn’t be inspected, and what’s assumed rather than confirmed?
• Action the ‘further investigation’ items early. Intrusive checks take time you may not have before exchange.
• Take the CAPEX into your negotiation. Costed defects are your evidence for a price reduction or a seller-funded fix.
Your technical due diligence checklist
Whether you’re commissioning a TDD or sense-checking one you’ve received, this is what a thorough survey should gather and inspect.
Documents to gather
- Planning permissions & building control / completion certificates
- As-built drawings & specifications
- Warranties & guarantees (roof, cladding, recent works)
- Service & maintenance records
- Asbestos register & survey
- EPC(s) & any MEES documentation
- Fire risk assessment
- Health & safety file / CDM information
- Previous survey reports; lease & title information
What should be inspected
- Structure & fabric
- Roof & rainwater goods
- Building envelope (cladding, glazing, weathering)
- M&E services (heating, ventilation, electrics, lifts)
- Fire safety & means of escape
- Access & Equality Act considerations
- Environmental & deleterious materials
- External areas & boundaries
Remember the technical survey runs alongside your solicitor’s legal and financial due diligence — between them they cover the whole risk picture. For the bigger picture on what TDD is and when you need it, see our guide to commercial surveys & technical due diligence.
Frequently asked questions
It’s the written output of a technical due diligence survey — a chartered building surveyor’s structured assessment of a commercial building’s condition, risks, compliance and future costs, prepared so a buyer, occupier or lender can make an informed decision before committing.
Typically: an introduction and scope, an executive summary with traffic-light (RAG) ratings, a property description, condition assessments of structure/fabric and M&E, health & safety and statutory compliance, energy/EPC and MEES, deleterious materials (asbestos), any legal/title interface, recommendations for further investigation, an estimated CAPEX schedule, a conclusion on suitability, and appendices.
A good report is concise and usable: clear RAG ratings, plain-English findings, a costed CAPEX schedule you can drop into your model, and honest limitations (what couldn’t be inspected). It should answer ‘what’s the risk, what will it cost, and what should I do?’ — not just describe the building.
From roughly a couple of weeks for a single straightforward building to several weeks or more for large or complex assets and portfolios, depending on the depth of review and how quickly documents and access are available.
The RICS TDD standard sets out the expected structure, and most surveyors follow it, so reports are broadly consistent. Rather than a generic template, ask your surveyor for a redacted sample so you can see how they present RAG ratings and CAPEX — that’s what varies in quality.
An RICS-regulated chartered building surveyor, often drawing on M&E, fire and environmental specialists for the relevant sections. Using an independent surveyor with no interest in the transaction keeps the assessment objective.
Need a technical due diligence report you can act on?
Blackacre’s RICS-regulated building surveyors deliver clear TDD reports across London, Surrey and Sussex — RAG ratings, a costed CAPEX schedule and plain-English recommendations, not just a description of the building.
Sources: RICS ‘Technical Due Diligence of Commercial Property, 1st edition’ (report structure & traffic-light rating system); RICS TDD scope & definition. General guidance, not advice on a specific transaction.