INSPECTION
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ubai has been a frontrunner in the region in adopting sophisticated technology, setting up high standards and even enforcing strict norms to regulate, enhance and create an outstanding real estate sector. This year the Middle East Facility Management Association (MEFMA) along with the Real Estate Regulatory Agency (RERA) has introduced the Star Rating System (SRS) an asset inspection and rating system into the realty sector. SRS is a new feather in Dubai’s cap that will rate and certify the asset after a thorough inspection process. With this system, government bodies aim to set quality standard in the market to boost the asset performance in the years to come. The system began its pilot inspection phase from January 2015 with Deyaar’s Al Seef 2 Tower located at Jumeirah Lake Towers assessment that is anticipated to be completed by end of February 2015. James Garbutt, Managing Director, Real Point - real estate inspection and consultancy firm shares details with Facility Insight on the SRS process and its benefits on the Realty and FM market.
THE PURPOSE Both MEFMA and RERA were aware that there were quality related issues regarding the way property was being built and maintained within the region. Building construction, completion and handover inspections had been undertaken in Dubai by RERA since 2009. It was increasingly evident from the findings of these inspections that significant improvements could be made to enhance the standards of building quality and the long-term performance of the property asset. Therefore, in September 2014, MEFMA and RERA co-ordinated with a group of the leading inspection firms, property management companies, developers and advisors to work on the development of the SRS and the audit inspections that would be necessary to implement this initiative. In January 2015, the first pilot inspections have begun and full launch of the initiative is expected to happen later this year.
STAGES OF INSPECTION The first part of the Star Rating System
James Garbutt
(SRS) inspection requires a meeting with the property owner and its management team to run through the audit requirements and start the process of document and information gathering. Normally, the inspection firm sends the document request lists ahead of the inspection so that the management team can prepare documents prior to the meeting. The second stage is to carry out the document review, which is partly done from the office and remaining is done on site, where the majority of the documents should be stored. The document storage method and its suitability for effective management throughout the life of the building is also considered during inspection. And in most cases, the inspection company can come across unorganised cabinets of incompleted files. However, there is a shift towards electronic document storage and integrated into CAFM systems that is commonly seen in the market. The third stage is to start the inspection of the property. This inspection covers all the assets of the property including the building structure and fabric, mechanical, electrical, plumbing and drainage systems and the finishes. During this inspection, the inspectors identify the condition of the asset, repairs required, the responsibility of the repairs and the category of the identified defect. The inspection defect categories assists the evaluators in the overall appraisal of the building to score the property asset based on the
following five main criteria: 1. Documentation 2. Technical Quality 3. Management 4. Sustainability 5. Health & Safety The fourth stage is to create the reports. The report is very comprehensive and identifies all the defects and shortcomings of the property asset. Every defect is scored based on a scoring matrix, which assists with the prioritization of the repairs. Where ever applicable photographs and supporting evidence are also included within the report. The inspection company also provides a section of recommendations, which are divided into the following main categories:
► Those defect items that need to be carried out immediately – typically health and safety related. ► Defect items that need to be rectified in order to maintain the quality of the asset but can be completed over a suitable period of time. ► Those defects that can undertaken in order to enhance the quality of the asset and increase its overall performance rating. Finally, once the report is completed, its issued in draft and then another meeting is organised with the property owner and management to run through the reports and discuss the findings. Sometimes there are items identified that need to be changed and these are then incorporated into the final version of the report, which is then formally issued.
TIMEFRAME The aim is to complete each inspection within a 4-week period from the date of the first meeting. However, the amount of time spent on each inspection will vary depending upon the size of the building and based on how organized the property management is with their property documentation and information. The actual physical inspection will normally only take a couple of days, however, it will often take several weeks for the inspection company to collect and review all the necessary documentation. That said if the documents are complete and well organized an inspection can complete MARCH-APRIL 2015
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