Engineering and Construction Audit

Engineering and Construction Audit: A Comprehensive Assessment of the Technical Condition and Risks of a Real Estate Asset

What is an engineering and construction audit?

An engineering and construction audit is a comprehensive technical assessment of a real estate asset aimed at determining its actual condition, verifying compliance with the design (project) documentation, and confirming conformity with the requirements of Ukrainian legislation, including the Law of Ukraine “On Regulation of Urban Development Activities”, the Law of Ukraine “On Architectural Activities”, and the applicable State Building Codes (DBN).

The audit includes:

• review of design and as-built documentation;

• inspection of load-bearing and enclosing structures;

• assessment of engineering systems (power supply, water supply, ventilation, etc.);

• identification of defects and damage;

• verification of compliance with construction standards and regulations;

• assessment of technical and financial risks.

This service is relevant for property owners, investors, developers, banks, and legal entities planning to purchase, реконstruct, or commission an asset for operation.

When is an engineering and construction audit required?

1. Prior to purchasing a real estate asset

The audit helps identify hidden defects, unauthorized alterations (unapproved redevelopments), violations of DBN requirements, and discrepancies with the design documentation.

2. Prior to reconstruction or major renovation

A technical inspection of buildings is mandatory in cases such as a change of functional purpose, addition of floors, or structural strengthening.

In such cases, it is also advisable to order the technical inspection of buildings and structures service on gbu.kyiv.ua to prepare a report with conclusions regarding the feasibility of the planned works.

3. When commissioning an asset for operation

The audit helps confirm that the asset’s actual condition complies with the design requirements and construction standards before submitting documents to the competent state architectural and construction control authorities.

4. In the context of litigation or corporate inspections

The audit results may be used as an evidentiary basis in disputes related to the quality of performed works or the cost of construction.

What does an engineering and construction audit include?

1. Documentation review

• design (project) documentation;

• urban planning conditions and restrictions;

• technical specifications (technical conditions);

• as-built (executive) documentation;

• construction permits and authorizing documents.

The documentation is assessed for compliance with legal requirements and the asset’s actual condition.

2. Visual and instrumental inspection

An assessment is carried out of:

• foundations;

• load-bearing walls and columns;

• floors/slabs;

• roof;

• facades;

• engineering systems.

Where required, non-destructive testing methods are used (ultrasonic testing, thermal imaging, etc.).

3. DBN compliance assessment

Compliance is verified with respect to:

• structural strength and reliability;

• fire safety;

• sanitary standards;

• energy efficiency;

• accessibility for persons with reduced mobility.

4. Preparation of a technical report

Based on the audit results, the client receives:

• a detailed description of identified defects;

• photo documentation;

• an assessment of the technical condition (fitness category);

• recommendations for remediation and устранение non-compliances;

• a preliminary estimate of costs for remedial works.

Common mistakes when an audit is not performed

1. Purchasing an asset with critical defects in the foundation or floor slabs.

2. Investing in unauthorized construction without proper permitting documentation.

3. Commencing reconstruction works without a technical conclusion on the condition of the structures.

4. Underestimating the cost of remedying DBN non-compliances.

Such mistakes may result in fines, suspension of construction activities, or court disputes.

Engineering and Construction Audit for Businesses

For commercial real estate (shopping and entertainment centers, office buildings, warehouse complexes, industrial premises), an audit is an element of due diligence when entering into purchase-and-sale or lease transactions.

It is particularly important to combine the technical review with legal analysis—for example, through the construction and legal audit service on gbu.kyiv.ua—which helps minimize legal risks and verify the legality of acquiring title.

Case example

During an audit of a warehouse complex in Kyiv Region, the following was identified:

• a discrepancy in the consequence class (CC2 instead of the declared CC1);

• absence of part of the as-built documentation;

• cracks in monolithic floor slabs due to нарушения of concreting technology.

Timely completion of the audit enabled the client to renegotiate the transaction terms and reduce the asset price taking into account the required repair works.

Benefits of a comprehensive approach

An engineering and construction audit in combination with:

• expert review of the design documentation,

• support in obtaining permits and authorizing documents,

• construction supervision,

ensures full control over the quality and legality of construction.

Conclusions

An engineering and construction audit is a risk-mitigation tool for the purchase, operation, or реконstruction of real estate. It enables you to:

• objectively assess the building’s technical condition;

• identify hidden defects;

• verify compliance with DBN requirements;

• receive professional recommendations for further actions.

The company GlobalBud Ukraine provides turnkey engineering and construction audit services—from documentation review to preparation of the technical report and legal support. Our team includes experienced engineers and lawyers with a proven track record of delivering projects of various consequence classes.

We work with individuals and legal entities, as well as Ukrainian and international companies. Contact GlobalBud Ukraine for a professional assessment of your asset and to minimize technical and legal risks.