How Cavendish Maxwell identified defects, assessed future expenditure and clarified the issues a purchaser needed to address before completion.
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CASE STUDY
Technical Due Diligence: Informing a Luxury Villa Purchase
Overview A newly completed luxury villa can appear ready for occupation while still presenting technical risks. For a prospective purchaser of a waterfront villa in Jumeirah Bay, Dubai, Cavendish Maxwell's Building Surveying team assessed the property's condition and the implications for ownership. The villa featured high-quality finishes, home automation, dedicated chilled water plant, lifts and swimming pool equipment. A completion certificate had been issued, although finishing works remained ongoing at the time of inspection. The assessment combined a visual inspection of accessible areas, document review and specialist testing. It identified matters requiring attention before purchase, established where systems performed satisfactorily and distinguished rectification costs from future replacement expenditure.
Property Summary
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Attribute
Detail
Property
Detached villa, basement, ground, first and roof levels
Plot
Approximately 2,400 sq m
Status
Completion certificate issued. Finishing works ongoing at inspection
Age at inspection
Under 12 months from completion
Instruction
Technical due diligence for a prospective purchaser
Services
Four air cooled chillers, 24 fan coil units, passenger lift, car lift, pool and plunge pool plant, home automation
Method
Visual inspection of accessible areas, document review, specialist MEP testing
Luxury waterfront villa, Jumeirah Bay, Dubai | Pre-acquisition technical due diligence
Findings that mattered to the purchaser The assessment recorded what needed fixing, what performed as intended, and what the seller still had to supply.
Fire and life safety required priority attention
Electrical testing revealed defects requiring rectification
The fire alarm control panel had no power, and connected
Opening and testing distribution boards exposed untermi-
devices were not operating. The review also identified
nated conductors, a loose neutral bar, taped joints and
concerns
portable
outdated load schedules. These findings gave the
extinguishers. These findings supported a request for the
purchaser specific issues to raise with the seller and a
seller to complete remedial works and provide testing and
basis for requiring verification of completed repairs.
with
firefighting
provision
and
commissioning certificates before completion.
Specialist investigation identified concealed waterproofing concerns
Testing provided reassurance about HVAC performance
Lifting roof tiles revealed missing or inadequate sealant at
Measured air and chilled water flows were within accept-
tile joints. Water ingress to the master bedroom had also
able limits against design. Several other elements were
been recorded during rainfall. The roof surface alone did
operational or showed no significant defects within the
not reveal the underlying issue, demonstrating the value
inspection scope. These included the passenger lift, home
of targeted investigation.
automation and pool plant. No cracking, distress or movement was observed to visible elements, although structural design verification fell outside the scope.
Handover documentation needed further attention
1,301,450
322,250
Ten year forecast expenditure over and above routine maintenance
Due within the first year of ownership
The records supplied included draft, unsigned or unstamped warranties and an incomplete set of as-built drawings. A lift maintenance contract and certain technical records were missing. These gaps gave the purchaser a clear list of documents and confirmations to request before handover.
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Luxury waterfront villa, Jumeirah Bay, Dubai | Pre-acquisition technical due diligence
83%
Share of the immediate figure accounted for by fire and life safety
Putting Expenditure in Context The report separated immediate requirements from expenditure expected later in ownership. Budget allowances for items requiring attention within the first year totalled AED 322,250, with fire and life safety accounting for approximately 83% of that figure. This provided a basis for discussing seller funded rectification, a price adjustment or a retention pending completion of the works. The ten-year forecast also included future maintenance and replacement allowances. Of the AED 1,301,450 total, AED 785,000 fell within years six to ten. These later allowances principally concerned life cycle replacement of plant and equipment, rather than defects requiring immediate repair.
Expenditure by Time Band AED
Share
Immediate (under 1 year)
322,250
25%
Short term (1 to 2 years)
0
0%
Medium term (3 to 5 years)
194,200
15%
Long term (6 to 10 years)
785,000
60%
Total
1,301,450
100%
Time band
Figures are budget allowances. They are not tendered prices or a bill of quantities.
Value to the Purchaser The assessment gave the purchaser evidence to support negotiations and define technical requirements before completion. It also established a clearer ownership budget by distinguishing current defects from future expenditure.
Recommended positions
Position
Detail
Pre-completion
Seller to reinstate the fire alarm system and rectify the electrical items, with test and commissioning certificates provided.
Price and retention
The AED 322,250 immediate figure gives a basis for a price adjustment or a retention pending rectification.
Conditions of sale
Signed warranties, a complete as-built set and a lift maintenance contract in place at handover.
Ownership budget
AED 785,000 in years five to ten, led by replacement of fan coil units, informs the holding cost and any future sale.
The case illustrates how technical due diligence helps a buyer understand the condition of a property, resolve outstanding issues and make an informed purchase decision, even where the building is newly completed.
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Luxury waterfront villa, Jumeirah Bay, Dubai | Pre-acquisition technical due diligence
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Key contacts David Bevan Associate, Building Surveying +971 50 701 2119 david.bevan@cavendishmaxwell.com
cavendishmaxwell.com
James Mc Guinness Associate Director, Building Surveying +971 50 275 1911 james.mcguinness@cavendishmaxwell.com