Commercial Inspection Standards Of Operatoin

International Standards of Practice for

Inspecting Commercial Properties

1. Purpose

1.1 The purpose of this document is to define good practice and to establish a reasonable approach for the performance of an inspection of a commercial property.

2 Definitions

2.1 Core definitions

2.1.1 Commercial Property - A commercial property is defined as the building structures and improvements located on a parcel of commercial real estate. These may include structures such as buildings with residential units operated for profit, mixed use buildings, strip malls, motels, factories, storage facilities, restaurants, and office buildings.

2.1.2 Inspection - The inspection is defined as the process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector. A commercial inspection requires the inspector to make observations, conduct research, and report findings.

2.1.2.1 Observations - Observations are defined as those potential items of interest noted by the inspector during the walk-through survey portion of the inspection.

2.1.2.2 Research - Research is defined as the process of gathering information through document review and interview to augment the observations made during the walk-through portion of the inspection. This research may include reviewing readily available documents such as previous inspection reports, building permits, code violation notices and environmental studies. This research may also include interviews with readily available personnel such as building managers, tenants and owners.

2.1.2.3 Report - An inspection report is defined as a written communication describing the issues discovered from observations made and research conducted by the inspector that are, in the inspector's opinion, are likely to be of interest to his/her client. A report may contain photographs of observations made during the walk-through survey portion of the inspection and/or copies of documents reviewed during the research portion of the inspection.

2.2 Terminology commonly found in commercial property inspection reports.

· Accessible: Can be approached or entered by the inspector safely, without difficulty, fear or danger.

· Accessibility: Level of access a building offers people with disabilities.

· Activate: To turn on, supply power, or enable systems, equipment, or devices to become active by normal operating controls. Examples include turning on the gas or water supply valves to fixtures and appliances or activating electrical breakers or fuses.

· Actual Knowledge: The knowledge possessed by an individual as opposed to that discovered through document review.

· Adverse Conditions: Conditions that may be dangerous for the inspector and may limit the walk-through survey portion of the inspection.

· Adversely Affect: Constitute, or potentially constitute, a negative or destructive impact.

· Alarm System: Warning devices, installed or free-standing, including but not limited to: carbon monoxide detectors, flue gas and other spillage detectors, security equipment, ejector pumps and smoke alarms.

· Building Code: Rules and regulations adopted by the governmental authority having jurisdiction over the construction and/or remodeling of the commercial property.

· Building Department: Local authority having jurisdiction over the construction, alteration, and use of a property.

· Building Envelope: The enclosure that defines the heated/cooled area of a building, namely the exterior walls and roof.

· Building systems: Components, assemblies and systems which are a part of the overall building and property such as pavement, flatwork, structural components, roofing, exterior walls, plumbing, HVAC, electrical components, fire prevention, etc.

· Client: The party that retains the inspector and pays for the inspection.

· Commercial Property: The building structures and improvements located on a parcel of commercial real estate. These may include structures such as buildings with residential units operated for profit, mixed use buildings, strip malls, motels, factories, storage facilities, restaurants, and office buildings.

· Component: A permanently installed or attached fixture, element or part of a system.

· Condition: The visible and conspicuous state of being of an object.

· Consultant: A person with particular expertise in a subject who assists the inspector with portions of the inspection.

· Crawlspace: The area within the confines of the foundation and between the ground and the underside of the lowest floor structural component.

· Decorative: Ornamental; not required for the operation of essential systems and components of a building.

· Deferred Maintenance Items: Deficient items that cannot be remedied with routine maintenance, generally caused by neglect.

· Describe: To report in writing a system or component by its type, or other observed characteristics, to distinguish it from other components used for the same purpose.

· Determine: To arrive at an opinion or conclusion pursuant to examination.

· Dismantle: To open, take apart or remove any component, device or piece that would not typically be opened, taken apart or removed by an ordinary occupant.

· Due Diligence: A level of care in the inspection process which varies depending upon the scope of work agreed upon by the inspector and his/her client.

· Easily Visible: Describes systems, items, and components that are both conspicuous and in plain sight, absent of the need for intrusive inspection techniques, probing, disassembly or the use of special equipment.

· Engineering Service: Any professional service or creative work requiring engineering education, training, and experience and the application of special knowledge of the mathematical, physical and engineering sciences to such professional service or creative work as consultation, investigation, evaluation, planning, design and/or supervision of construction for the purpose of assuring compliance with the specifications and design, in conjunction with structures, buildings, machines, equipment, works or processes.

· Enter: To go into an area to observe visible components.

· Evaluate: To assess the systems, structures or components of a building.

· Examine: To visually examine. See Inspect.

· Foundation: The base upon which the structure or wall rests; usually masonry, concrete, or stone, and generally partially underground.

· Function: The action for which an item, component, or system is specially fitted or used or for which an item, component or system exists; to be in action or perform a task.

· Functional: Performing, or able to perform, a function.

· Immediate Cost: Estimated cost of remedying an existing safety hazard or repairing a system or component that will likely fail within a year.

· Inspected Property: The readily accessible areas of the buildings, site, items, components, and systems included in the inspection.

· Inspection: The process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector. A commercial inspection requires the inspector to make observations, conduct research, and report findings.

· Inspector: One who performs the commercial property inspection.

· Installed: Attached or connected such that the installed item requires tool for removal.

· Interview: To discuss with those who have knowledge about the subject property.

· Normal Operating Controls: Devices such as thermostats that would be operated by ordinary occupants which require no specialized skill or knowledge.

· Life Expectancy: Average function time in years assuming regular maintenance.

· Material: Having significant importance as in material defect. This term is reserved for describing things of significant importance.

· Observations: Those potential items of interest noted by the inspector during the walk-through survey portion of the inspection.

· Observe: To see through visually directed attention.

· Obvious: A condition or fact not likely to be ignored or overlooked.

· Operate: To cause systems to function or turn on with normal operating controls.

· Physical Deficiency: A major defect, a significant deferred maintenance item, a component or system that has exhausted most or all of its remaining useful life (regardless of its actual life expectancy), a safety concern, or anything that could potentially cause the need for an expensive repair.

· Publicly Available Information: Information that is accessible or available to anyone upon request.

· Readily accessible: Describes the area of the subject property that has been made available to the inspector at the time of the walk-through survey portion of the inspection, and/or an item or component if, in the judgment of the inspector, it is capable of being safely observed without movement of obstacles, detachment or disengagement of connecting or securing devices, or other unsafe or difficult procedures to gain access and/or a document that has been made available to the inspector for use in the research portion of the inspection.

· Readily Ascertainable: Describes information that is available to the inspector within reasonable time at a nominal cost so that it can be practically reviewable during the research portion of the inspection.

· Readily Available: Describes the information, personnel, and documents that are made available quickly to the inspector.

· Recreational Facilities: Spas, saunas, steam baths, swimming pools, tennis courts, playground equipment, and other exercise, entertainment or athletic facilities.

· Remaining Useful Life: A subjective estimate or guess made by the inspector based upon his observations and experience as to the number of remaining years that a component will be functional before needing replacement.

· Report: The written communication describing the issues discovered from observations made and research conducted by the inspector and which, in the inspector's opinion, are likely to be of interest to his/her client. A report may contain photographs of observations made during the walk-through survey portion of the inspection and/or copies of documents reviewed during the research portion of the inspection.

· Representative Number: A sufficient number to serve as a typical or characteristic example of the item(s) inspected.

· Research: The process of gathering information through the review of documents and interviews to augment the observations made during the walk-through portion of the inspection. This research may include reviewing readily available documents such as previous inspection reports, building permits, code violation notices and environmental studies. This research may also include interviews with readily available personnel such as building managers, tenants and owners.

· Scope of Work: Work that deviates from this standard depending on budget, time constraints, purpose of the inspection, age of the subject property, and risk tolerance of the client which the inspector and client have agreed to.

· Short Term Cost: Estimated cost of repairs which may not require immediate attention, but which should not be delayed for more than 2 years.

· Shut Down: Turned off, unplugged, inactive, not in service, or not operational.

· Special Consultant: A person with particular expertise in a subject who assists the inspector with portions of the inspection.

· Standard: Often used to mean InterNACHI' Standards of Practice for Inspecting Commercial Properties.

· Structural Component: A component which supports the building's dead and live loads.

· Subject Property: The commercial property that is the subject of the inspection.

· Suggested Remedy: An opinion offered as to a course of action to repair a deficiency. Suggested remedies are outside the scope of a commercial inspection.

· System: An assembly of various components to function as a whole.

· Technically Exhaustive: A comprehensive and detailed examination beyond the scope of a commercial property inspection which might involve, special equipment, meters, scaffolding, dismantling, probing, testing, or troubleshooting.

· Timely Access: Access to the subject property and documentation required by the inspector to perform the inspection.

· Unsafe: A condition in a readily accessible, installed system or component which is judged to be a significant risk of personal injury during normal, day-to-day use. The risk may be due to damage, deterioration, improper installation or a change in accepted residential construction standards.

· Verify: To confirm or substantiate.

· Visible: That which may be easily observed during the walk-through survey portion of the inspection.

· Walk-Through Survey: That portion of the inspection where the inspector makes non-intrusive, visual observations of readily accessible areas of the subject property.

2.3 Common abbreviations and acronyms used in commercial property inspection reports.

· ADA: Americans with Disabilities Act (US).

· AHJ: Authority having jurisdiction.

· BUR: Built-up roofing.

· CMI: Certified Master Inspector.

· CO: Certificate of occupancy.

· COMSOP: Commercial Standards of Practice.

· CSA: Canadian Standards Association.

· EIFS: Exterior insulation and finish system.

· EPA: Environmental Protection Agency (US).

· HVAC: Heating, ventilation and air conditioning.

· IAC2: International Association of Certified Indoor Air Consultants.

· IAQ: Indoor air quality.

· InterNACHI: International Association of Certified Home Inspectors.

· ICC: International Code Council.

· MICB: Master Inspector Certification Board.

· NEC: National Electric Code (UK).

· NFPA: National Fire Protection Association.

· PE: Professional Engineer.

· RICS: Royal Institute of Chartered Surveyors (UK).

· RUL: Remaining useful life.

2.4 Other inspection related terms

Other inspection related terms can be found by visiting InterNACHI's searchable online Glossary at www.nachi.org/glossary.htm

3. Use

3.1 Royalty-free use

Although this standard is protected by copyright and other laws, the International Association of Certified Home Inspectors (InterNACHI) hereby grants non-exclusive, royalty-free license to all members of InterNACHI and their clients and all government agencies and government employees throughout the world to use this code as desired including making copies, posting, transmitting, and incorporating into reporting software, free of charge, without the need for pre-approval, provided that each use is clearly attributed to InterNACHI.

Acceptable examples of attribution include "performed in accordance with InterNACHI's Commercial SOP," "based on InterNACHIcomsop-2008" or "see www.internachi.org/comsop."

Nothing in this license shall preclude InterNACHI from modifying this standard and users should regularly check for the latest revision at www.nachi.org/comsop.htm

4. Inspection

4.1 Objective

The objective of an inspection is to provide written communication describing the issues discovered from observations made and research conducted by the inspector and that, in the inspector's opinion, are likely to be of interest to his/her client.

4.2 Who may perform the inspection.

Any portion of the inspection including the walk-through survey, research, and report generation may be performed by the inspector, his/her staff, or any consultant hired by the inspector. This standard recognizes that for the majority of commercial inspections, the inspector is likely an individual with a general, well rounded knowledge of commercial properties and that the inspector or client may want to augment the inspector's skills with specialty consultants who have particular expertise in certain areas. The decision to hire specialty consultants will of course rely on budget and time constraints as well as the risk tolerance of the client.

4.3 Varying levels of due diligence

This standard is designed as a baseline from which the inspector and client can develop and agree to a scope of work that may deviate from this standard depending on budget, time constraints, purpose of the inspection, age of the subject property, and risk tolerance of the client. The level of due diligence should be set where the cost, in time and money, of acquiring information about the subject property will not likely exceed the value of that information. Therefore an inspection performed in accordance with this standard will not be technically exhaustive.

4.3.1 Sample language for use when defining the scope of work

"The inspection will be performed in accordance with InterNACHIcomsop-2008 except that... "

4.3.2 Representative observations

In recognizing that the client likely has the goal of acquiring information about the subject property at a cost, in time and money, that does not exceed the value of that information, representative observations are not just permitted by this standard, but recommended as well.

4.4 Uncertainty

The client should understand that no inspection report is completely accurate. A report is only the written communication of the observations made and research conducted by the inspector. The report contains those items which in the inspector's opinion are likely to be of interest to his/her client.

4.5 Subjectivity

The client should understand that the inspection report is, to a large degree, the subjective opinions of the inspector based on his/her observations and research within the limits of access, time, and budget and without the aid of special equipment or meters and without dismantling, probing, testing, or troubleshooting and without detailed knowledge of the commercial property, its components or its systems. The inspection report is not much more than a subjective professional opinion.

4.6 Not an architectural or engineering service

An inspector performing a commercial inspection in accordance with this standard is not practicing architecture or engineering.

4.7 Not a warranty, guarantee or insurance policy

The inspection is not a warranty and the inspection report is merely the written communication of the inspector's subjective opinion on the condition of the subject property.

5 Research

5.1 Objective

The objective of performing research including the review of documents and interviews is to augment the information obtained in walk-through survey and to provide supporting documentation to the inspection report.

5.2 Document procurement

It is the client's responsibility to obtain copies of all documents and provide them for the inspector. These documents are most often obtained from the seller or from local government offices. The inspector is not responsible for gathering or paying for copies of appropriate documents to be reviewed unless these tasks are specifically assigned to the inspector in the scope of work agreement.

5.3 Documents to be reviewed and included in the inspection report

The inspector should review all documents provided by the client and owner. The inspector should also make an inquiry and review of any other documents can be reasonably ascertained on-site or from the building owner or manager such as certificates of occupancy, building code violation notices, repair invoices, and warranties. The inspector is not required to uncover and review information that is not provided or cannot be reasonably ascertained on-site. Copies of documents that the inspector believes may be of interest to the client and copies of documents that support the inspector's opinions should be included in the inspection report.

5.3.1 Examples of documents the inspector may want to request for review.

· Accessibility surveys

· Appraisals

· Building plans

· Certificates of occupancy

· Citations

· Environmental studies

· Fire records

· Flood Plane maps

· Floor plans

· Former inspection reports

· Notices

· Permits

· Proposals

· Rent records

· Repair estimates/invoices

· Safety inspection records

· Seller disclosures

· Utility bills

· Warranties

5.4 Interviews

The inspector should identify and interview the person with the most knowledge about the condition of the building. Typically this will be the building owner or manager. Unless otherwise agreed to in the scope of work agreement, it is the responsibility of the client to arrange to have these persons on hand for interview by the inspector on the day of the walk-through survey.

5.5 Pre-inspection questionnaires

The inspector may request that the owner, building manager and/or client fill out pre-inspection questionnaires to gather information. The inspector may rely that these responses are truthful. In cases where parties refuse to fill out questionnaires in writing, the inspector may interview the parties and fill out the questionnaires for them. The inspector should note in the report if he/she filled out the questionnaire based on an interview and whether such interview was performed in person, by telephone, or by email. Copies of all responses to such questionnaires should be included in the inspection report.

5.6 Reliance

The level of accuracy of information varies depending on its source. The inspector may rely on information obtained to the extent that the information appears to be accurate and complete. This standard does not require the inspector to independently verify the accuracy of the documents reviewed by the inspector or included in the report nor the statements made by those interviewed by the inspector.

5.7 Fraud

The inspector is not a fraud investigator and this standard does not require the inspector to look for intentionally hidden deficiencies in the subject property. The inspection report is supplementary to the seller's disclosures.

5.8 Previously generated reports

A previously generated inspection report should be treated no differently than any other document reviewed during the research portion of the inspection and like information collected from any other source, information obtained from a previously generated report should reference its source in the new inspection report. No portion of a previously generated report should be used as a substitute for the new inspection report.

6 Walk-through survey

6.1 Objective

The objective of the walk-through survey it to allow the inspector to visually observe the subject property, gather information and note items of interest.

6.2 Access responsibility

It is the client's responsibility to arrange for the inspector to receive timely access to the subject property for the walk-through survey portion of the inspection and access to all documents and interviewees needed for the research portion of the inspection. This includes access to all documents, information, and previously generated reports in the client's possession. The inspector is not responsible for obtaining, reviewing, or providing information should the source withhold, impede or delay access. Anything that hinders the inspector's access to should be noted in the report.

6.3 Revisits

It is expected that the inspector will perform only one walk-through survey per inspection report. However, it may be necessary for the inspector to revisit certain areas of the subject building after performing the research portion of the inspection.

6.4 Inspector safety

It is the responsibility of the inspector to perform the walk-through survey safely.

6.5 Observations

6.5.1 Roof

I. The inspector shall inspect from ground level, or eaves or roof top (if a roof top access door exists):

A. The roof covering.

B. For existence of exposed membrane.

C. Slopes.
D. For evidence of significant ponding.
E. The gutters.
F. The downspouts.
G. The vents, flashings, skylights, chimney and other roof penetrations.
H. The general structure of the roof from the readily accessible panels, doors or stairs.

I. For the need for repairs.

II. The inspector is not required to:

A. Walk on any pitched roof surface.
B. Predict the service life expectancy.
C. Inspect underground downspout diverter drainage pipes.
D. Remove snow, ice, debris or other conditions that prohibit the observation of the roof surfaces.
E. Inspect antennae, lightning arresters, or similar attachments.

F. Walk on any roof areas that appear to be unsafe.

G Walk on any roofs that lack rooftop access doors.

6.5.2 Exterior

I. The inspector shall inspect:

A. The siding, flashing and trim.
B. All exterior doors, decks, stoops, steps, stairs, porches, railings, eaves, soffits and fascias.

C. And report as in need of repair any safety issues regarding intermediate balusters, spindles, or rails for steps, stairways, balconies, and railings.

D. A representative number of windows.
E. The vegetation, surface drainage and retaining walls when these are likely to adversely affect the structure.

F. The exterior for accessibility barriers.

G. The storm water drainage system.

H. The general topography.

I. The parking areas.

J. The sidewalks.

K. Exterior lighting.

L. The landscaping.
M. And describe the exterior wall covering.

II. The inspector is not required to:

A. Inspect or operate screens, storm windows, shutters, awnings, fences, outbuildings, or exterior accent lighting.
B. Inspect items, including window and door flashings, which are not visible or readily accessible from the ground.
C. Inspect geological, geotechnical, hydrological and/or soil conditions.
D. Inspect recreational facilities.
E. Inspect seawalls, break-walls and docks.
F. Inspect erosion control and earth stabilization measures.
G. Inspect for safety type glass.
H. Inspect underground utilities.
I. Inspect underground items.
J. Inspect wells or springs.
K. Inspect solar systems.
L. Inspect swimming pools or spas.
M. Inspect septic systems or cesspools.
N. Inspect playground equipment.
O. Inspect sprinkler systems.
P. Inspect drain fields or drywells.

Q. Inspect manhole covers.
R. Determine the integrity of the thermal window seals or damaged glass.

6.5.3 Basement, Foundation & Crawlspace

I. The inspector shall inspect:

A. The basement.
B. The foundation
C. The crawlspace.
D. The visible structural components.
E. Any present conditions or clear indications of active water penetration observed by the inspector.

F. And report any general indications of foundation movement that are observed by the inspector, such as but not limited to sheetrock cracks, brick cracks, out-of-square door frames or floor slopes.

II. The inspector is not required to:

A. Enter any crawlspaces that are not readily accessible or where entry could cause damage or pose a hazard to the inspector.
B. Move stored items or debris.
C. Operate sump pumps.
D. Identify size, spacing, span, location or determine adequacy of foundation bolting, bracing, joists, joist spans or support systems.
E. Provide any engineering or architectural service.
F. Report on the adequacy of any structural system or component.

6.5.4 Heating

I. The inspector shall inspect:

A. The heating systems using normal operating controls and describe the energy source and heating method.
B. And report as in need of repair heating systems which do not operate.
C. And report if inspector deemed the heating systems inaccessible.

II. The inspector is not required to:

A. Inspect or evaluate interiors of flues or chimneys, fire chambers, heat exchangers, humidifiers, dehumidifiers, electronic air filters, solar heating systems or fuel tanks.
B. Inspect underground fuel tanks.
C. Determine the uniformity, temperature, flow, balance, distribution, size, capacity, BTU, or supply adequacy of the heating system.
D. Light or ignite pilot flames.
E. Activate heating, heat pump systems, or other heating systems when ambient temperatures or when other circumstances are not conducive to safe operation or may damage the equipment.
F. Override electronic thermostats.
G. Evaluate fuel quality.

H. Verify thermostat calibration, heat anticipation or automatic setbacks, timers, programs or clocks.

I. Inspect tenant owned or maintained heating equipment.

6.5.5 Cooling

I. The inspector shall inspect:

A. The central cooling equipment using normal operating controls.

II. The inspector is not required to:

A. Determine the uniformity, temperature, flow, balance, distribution, size, capacity, BTU, or supply adequacy of the cooling system.
B. Inspect window units, through-wall units, or electronic air filters.
C. Operate equipment or systems if exterior temperature is below 60 degrees Fahrenheit or when other circumstances are not conducive to safe operation or may damage the equipment.
D. Inspect or determine thermostat calibration, heat anticipation or automatic setbacks or clocks.
E. Examine electrical current, coolant fluids or gases, or coolant leakage.

F. Inspect tenant owned or maintained cooling equipment.

6.6.6 Plumbing

I. The inspector shall:

A. Verify the presence of and identify the location of the main water shutoff valve to each building.
B. Inspect the water heating equipment, including combustion air, venting, connections, energy sources, seismic bracing, and verify the presence or absence of temperature-pressure relief valves and/or Watts 210 valves.
C. Flush a representative number of toilets.
D. Run water in a representative number of sinks, tubs, and showers.
E. Inspect the interior water supply including a representative number of fixtures and faucets.
F. Inspect the drain, waste and vent systems, including a representative number of fixtures.
G. Describe any visible fuel storage systems.
H. Inspect the drainage sump pumps testing sumps with accessible floats.
I. Inspect and describe the water supply, drain, waste and main fuel shut-off valves, as well as the location of the water main and main fuel shut-off valves.
J. Inspect and determine if the water supply is public or private.
K. Inspect the water supply by viewing the functional flow in several fixtures operated simultaneously and report any deficiencies as in need of repair.
L. Inspect and report as in need of repair deficiencies in installation and identification of hot and cold faucets.
M. Inspect and report as in need of repair mechanical drain-stops that are missing or do not operate if installed in sinks, lavatories and tubs.
N. Inspect and report as in need of repair commodes that have cracks in the ceramic material, are improperly mounted on the floor, leak, or have tank components which do not operate.

II. The inspector is not required to:

A. Ignite pilot flames.
B. Determine the size, temperature, age, life expectancy or adequacy of the water heater.
C. Inspect interiors of flues or chimneys, water softening or filtering systems, well pumps or tanks, safety or shut-of valves, floor drains, lawn sprinkler systems or fire sprinkler systems.
D. Determine the exact flow rate, volume, pressure, temperature, or adequacy of the water supply.
E. Determine the water quality or potability or the reliability of the water supply or source.
F. Open sealed plumbing access panels.
G. Inspect clothes washing machines or their connections.
H. Operate any main, branch or fixture valve.

I. Test shower pans, tub and shower surrounds or enclosures for leakage.
J. Evaluate the compliance with local or state conservation or energy standards, or the proper design or sizing of any water, waste or venting components, fixtures or piping.
K. Determine the effectiveness of anti-siphon, back-flow prevention or drain-stop devices.
L. Determine whether there are sufficient clean-outs for effective cleaning of drains.
M. Evaluate gas, liquid propane or oil storage tanks.
N. Inspect any private sewage waste disposal system or component within such a system.

O. Inspect water treatment systems or water filters.
P. Inspect water storage tanks, pressure pumps or bladder tanks.

Q. Evaluate wait time for hot water at fixtures, or perform testing of any kind on water heater elements.

R. Evaluate or determine the adequacy of combustion air.

S. Test, operate, open or close safety controls, manual stop valves and/or temperature or pressure relief valves.

T. Examine ancillary systems or components, such as, but not limited to those relating to solar water heating or hot water circulation.

U. Determine the existence or condition of polybutylene plumbing.

6.5.7 Electrical

I. The inspector shall inspect:

A. The service line.
B. The meter boxes.
C. The main disconnects.
D. And determine the rating of the service amperage.
E. Panels, breakers and fuses.
F. The service grounding and bonding.
H. A representative number of switches, receptacles, light fixtures and AFCI receptacles.

I. And test a representative sample of GFCI receptacles and GFCI circuit breakers observed and deemed to be GFCI's during the inspection.

I. And report the presence of solid conductor aluminum branch circuit wiring if readily visible.
J. And report on any GFCI-tested receptacles in which power is not present, polarity is incorrect, the receptacle is not grounded or, is not secured to the wall, the cover is not in place, the ground fault circuit interrupter devices are not installed properly or do not operate properly, or any evidence of arcing or excessive heat.
K. The service entrance conductors and the condition of their sheathing.
L. The ground fault circuit interrupters observed and deemed to be GFCI's during the inspection with a GFCI tester.
M. And report the absence of smoke detectors.
N. Service entrance cables and report as in need of repair deficiencies in the integrity of the insulation, drip loop, or separation of conductors at weatherheads and clearances.

II. The inspector is not required to:

A. Insert any tool, probe or device into the main panel, sub-panels, downstream panels, or electrical fixtures.
B. Operate electrical systems that are shut down.
C. Remove panel covers or dead front covers if not readily accessible.
D. Operate over current protection devices.
E. Operate non-accessible smoke detectors.
F. Measure or determine the amperage or voltage of the main service if not visibly labeled.
G. Inspect the alarm system and components.
H. Inspect the ancillary wiring or remote control devices.
I. Activate any electrical systems or branch circuits which are not energized.
J. Operate overload devices.
K. Inspect low voltage systems, electrical de-icing tapes, swimming pool wiring or any time-controlled devices.
L. Verify the continuity of the connected service ground.
M. Inspect private or emergency electrical supply sources, including but not limited to generators, windmills, photovoltaic solar collectors, or battery or electrical storage facility.
N. Inspect spark or lightning arrestors.
O. Conduct voltage drop calculations.
P. Determine the accuracy of breaker labeling.

I. Inspect tenant owned equipment.

6.5.8 Fireplaces

I. The inspector shall inspect:

A. Fireplaces, and open and close the damper doors if readily accessible and operable.
B. Hearth extensions and other permanently installed components.
C. And report as in need of repair deficiencies in the lintel, hearth and material surrounding the fireplace, including clearance from combustible materials

II. The inspector is not required to:

A. Inspect the flue or vent system.
B. Inspect the interior of chimneys or flues, fire doors or screens, seals or gaskets, or mantels.
C. Determine the need for a chimney sweep.
D. Operate gas fireplace inserts.
E. Light pilot flames.
F. Inspect automatic fuel feed devices.
G. Inspect combustion and/or make-up air devices.
H. Inspect heat distribution assists whether gravity controlled or fan assisted.
I. Ignite or extinguish fires.
J. Determine draft characteristics.
K. Move fireplace inserts, stoves, or firebox contents.
L. Determine adequacy of draft, perform a smoke test or dismantle or remove any fireplace component.

M. Perform an NFPA inspection.

6.5.9 Attic, Ventilation & Insulation

I. The inspector shall inspect:

A. The insulation in unfinished spaces.
B. The ventilation of attic spaces.
C. Mechanical ventilation systems.
D. And report on the general absence or lack of insulation.

II. The inspector is not required to:

A. Enter the attic or unfinished spaces that are not readily accessible or where entry could cause damage or pose a safety hazard to the inspector in his or her opinion.
B. Move, touch, or disturb insulation.
C. Move, touch or disturb vapor retarders.
D. Break or otherwise damage the surface finish or weather seal on or around access panels and covers.
E. Identify the composition of or the exact R-value of insulation material.
F. Activate thermostatically operated fans.
G. Determine the types of materials used in insulation/wrapping of pipes, ducts, jackets, boilers, and wiring.

H. Determine adequacy of ventilation.

6.6.10 Doors, Windows & Interior

I. The inspector shall:

A. Open and close a representative number of doors and windows.
B. Inspect the walls, ceilings, steps, stairways, and railings.
C. Inspect garage doors and garage door openers.

D. Inspect interior steps, stairs, and railings.

E. Inspect all loading docks.

F. Ride all elevators and escalators.

G. Look for the existence of smoke detectors, fire extinguishers, and emergency lighting.

H. And report as in need of repair any windows that are obviously fogged or display other evidence of broken seals.

II. The inspector is not required to:

A. Inspect paint, wallpaper, window treatments or finish treatments.
B. Inspect central vacuum systems.
C. Inspect safety glazing.
D. Inspect security systems or components.
E. Evaluate the fastening of countertops, cabinets, sink tops and fixtures, or firewall compromises.
F. Move furniture, stored items, or any coverings like carpets or rugs in order to inspect the concealed floor structure.
G. Move drop ceiling tiles.
H. Inspect or move any household appliances..
I. Inspect or operate equipment housed in the garage except as otherwise noted.
J. Verify or certify safe operation of any auto reverse or related safety function of a garage door.
K. Operate or evaluate security bar release and opening mechanisms, whether interior or exterior, including determining compliance with local, state, or federal standards.
L. Operate any system, appliance or component that requires the use of special keys, codes, combinations, or devices.
M. Operate or evaluate self-cleaning oven cycles, tilt guards/latches or signal lights.
N. Inspect microwave ovens or test leakage from microwave ovens.
O. Operate or examine any sauna, steam-jenny, kiln, toaster, ice-maker, coffee-maker, can-opener, bread-warmer, blender, instant hot water dispenser, or other small, ancillary devices.
P. Inspect elevators.
Q. Inspect remote controls.
R. Inspect appliances.
S. Inspect items not permanently installed.
T. Examine or operate any above-ground, movable, freestanding, or otherwise non-permanently installed pool/spa, recreational equipment or self-contained equipment.
U. Come into contact with any pool or spa water in order to determine the system structure or components.
V. Determine the adequacy of spa jet water force or bubble effect.
W. Determine the structural integrity or leakage of a pool or spa.

X. Determine flammability.

X. Inspect tenant owned equipment or personal property.

7 Report

7.1 Format

This standard does not require any one particular report format. It is InterNACHI's opinion that the commercial inspection industry and consumer clients are best served when inspectors are free to compete through report generation innovation.

7.2 Opinions of shutdown systems

The inspector should still try to render an opinion of the condition of systems even if they were shutdown or were not operational at the time of the walk-through survey.

7.3 Obsolescence

The client should only rely on the inspection report at the point in time that the inspector's observations where being made and research was being conducted. The client should deem the report as obsolete to some extent, even while it is being prepared.

7.4 Site-specific

The client should understand that an inspection performed in accordance with this standard only relates to the observations made and research conducted. Consequently this standard does not address issues such as business operations at the subject property, deed encumbrances, neighborhood conditions, etc.

7.5 Cost to remedy

The inspector is not required to provide repair estimates or opinions of costs to remedy. The inspector may offer opinions about such costs as a courtesy but the offering of these opinions is outside the scope of a commercial inspection.

8. Limitations, exceptions & exclusions

8.1. Limitations:

I. An inspection is not technically exhaustive.
II. An inspection will not identify concealed or latent defects.
III. An inspection will not deal with aesthetic concerns or what could be deemed matters of taste, cosmetic, etc.
IV. An inspection will not determine the suitability of the property for any use.
V. An inspection does not determine the market value of the property or its marketability.

VI. An inspection does not determine the insurability of the property.
VI. An inspection does not determine the advisability or inadvisability of the purchase of the inspected property.
VIII. An inspection does not determine the life expectancy of the property or any components or systems therein.
IX. An inspection does not include items not permanently installed.
X. These Standards of Practice apply only to commercial properties.

8.2. Exclusions:

I. The inspectors are not required to determine:

A. Property boundary lines or encroachments.
B. The condition of any component or system that is not readily accessible.
C. The service life expectancy of any component or system.
D. The size, capacity, BTU, performance, or efficiency of any component or system.
E. The cause or reason of any condition.
F. The cause of the need for repair or replacement of any system or component.
G. Future conditions.
H. Compliance with codes or regulations.
I. The presence of evidence of rodents, animals or insects.
J. The presence of mold, mildew or fungus.
K. The presence of air-borne hazards.
L. The presence of birds.
M. The presence of other flora or fauna.
N. The air quality.
O. The existence of asbestos.
P. The existence of environmental hazards.
Q. The existence of electro-magnetic fields.
R. The presence of hazardous materials including, but not limited to, the presence of lead in paint.
S. Any hazardous waste conditions.
T. Any manufacturer's recalls or conformance with manufacturer installation or any information included in the consumer protection bulletin.
U. Operating costs of systems.
V. Replacement or repair cost estimates.
W. The acoustical properties of any systems.
X. Estimates of how much it will cost to run any given system.

Z. Resistance to seismic activities.

II. The inspectors are not required to operate:

A. Any system that is shut down.
B. Any system that does not function properly.
C. Or evaluate low voltage electrical systems such as, but not limited to:
1. Phone lines.
2. Cable lines.
3. Antennae.
4. Lights.
5. Remote controls.
D. Any system that does not turn on with the use of normal operating controls.
E. Any shut off valves or manual stop valves.
F. Any electrical disconnect or over current protection devices.
G. Any alarm systems.
H. Moisture meters, gas detectors or similar equipment.

III. The inspectors are not required to:

A. Move any personal items or other obstructions, such as, but not limited to:

1. Throw rugs.
2. Furniture.
3. Floor or wall coverings.
4. Ceiling tiles
5. Window coverings.
6. Equipment.
7. Plants.
8. Ice.
9. Debris.
10. Snow.
11. Water.
12. Dirt.
13. Foliage.
14. Pets

B. Dismantle, open, or uncover any system or component.
C. Enter or access any area which may, in the opinion of the inspector, to be unsafe or risk his or her personal safety.
D. Enter crawlspaces or other areas that are unsafe or not readily accessible.
E. Inspect or determine the existence of underground items such as, but not limited to, underground storage tanks, whether abandoned or actively used.
F. Do anything which, in the inspector's opinion, is likely to be unsafe or dangerous to the inspector or others or damage property, such as, but not limited to, walking on roof surfaces, climbing ladders, entering attic spaces or interacting with pets or livestock.
G. Inspect decorative items.
H. Inspect common elements or areas in multi-unit housing.
I. Inspect intercoms, speaker systems, radio-controlled, security devices or lawn irrigation systems.
J. Offer guarantees or warranties.
K. Offer or perform any engineering services.
L. Offer or perform any trade or professional service other than commercial property inspection.
M. Research the history of the property, report on its potential for alteration, modification, extendibility, or its suitability for a specific or proposed use for occupancy.
N. Determine the age of construction or installation of any system structure, or component of a building, or differentiate between original construction and subsequent additions, improvements, renovations or replacements thereto.
O. Determine the insurability of a property.

P. Perform or offer Phase 1 environmental audits.

Q. Inspect on any system or component which is not included in these standards.

9. Ethics

Inspectors performing inspections in accordance to this standard must maintain a high level of business ethics.

9.1 Duty to client

9.1.1 The inspector shall substantially follow this standard unless the scope of work indicates otherwise.

9.1.2 The inspector shall not engage in any practices that could be damaging to the client or bring discredit to the inspection industry.

9.1.3 The inspector shall be fair, honest, impartial, and act in good faith in dealing with the client.

9.1.4 The inspector shall not discriminate on the basis of race, color, religion, sex, national origin, familial status, or handicap and shall comply with all federal, state and local laws concerning discrimination.

9.1.5 The inspector member shall be truthful regarding his/her services & qualifications.

9.1.6 The inspector shall have no undisclosed conflict of interest with the client, nor shall the inspector accept or offer any undisclosed commissions, rebates, profits or other benefit, nor shall the inspector accept or offer any disclosed or undisclosed commissions, rebates, profits or other benefit from real estate agents, brokers or any third parties having financial interest in the sale of the property nor shall the inspector offer or provide any disclosed or undisclosed financial compensation directly or indirectly to any real estate agent, real estate broker or real estate company for referrals or for inclusion on lists of preferred and/or affiliated inspectors or inspection companies.

9.1.7 The inspector shall not communicate any information about an inspection to anyone except the client without the prior written consent of the client, except in cases when the information may affect the safety of others or violates a law or statute.

9.1.8 The inspector shall always act in the interest of the client, unless doing so violates a law or statute.

9.1.9 The inspector shall use a written scope of work agreement that specifies the services to be performed, the limitations of services and fees.

9.1.10 The inspector shall comply with all government rules and licensing requirements in the jurisdiction where he/she conducts business.

9.1.11 The inspector shall not perform or offer to perform, for an additional fee, any repairs or associated services to the structure for which the inspector or inspector's company has prepared a commercial inspection report, for a period of 12 months. This provision shall not include services to components and/or systems which are not included in this standard.

10. Sample Commercial Inspection Agreement language (between inspector and client)

The address of the property is: ______________________________________________________________________________________________.

Fee for the commercial inspection is $____________________. INSPECTOR acknowledges receiving a deposit of $_________________ from CLIENT.

THIS AGREEMENT made this _____________ day of _______________________________________________________, 200__, by and between

__________________________________________________________ (Hereinafter "INSPECTOR") and the undersigned (hereinafter "CLIENT"), collectively referred to herein as "the parties." The Parties understand and voluntarily agree as follows:

1. INSPECTOR agrees to perform a visual inspection of the commercial building and to provide CLIENT with a written inspection report identifying the defects that INSPECTOR both observed and deemed material. Where accessible, INSPECTOR will view a representative sample of the building components covered under this inspection to be used in the preparation of the written inspection report. INSPECTOR will not test or otherwise analyze elements of the commercial building where destruction or dismantling of the particular element is required. The primary purpose of the inspection is to enhance the CLIENT'S information and knowledge about the commercial building to improve decision making for buying, selling or improving the property. As it may relate to this commercial building inspection, INSPECTOR may offer comments as a courtesy, but these comments will not comprise the bargained-for report. The report is only supplementary to the seller's disclosures.

2. Unless otherwise inconsistent with this Agreement or not possible, INSPECTOR agrees to perform the inspection in accordance with InterNACHI's International Standards of Practice for Inspecting Commercial Properties. Although INSPECTOR agrees to follow these standards, CLIENT understands that these standards contain certain limitations, exceptions, and exclusions. CLIENT also understands that InterNACHI is not a party to this Agreement and that InterNACHI has no control over INSPECTOR or representations made by INSPECTOR and does not supervise INSPECTOR. As noted above, this commercial building inspection is visual only. In certain instances, INSPECTOR may engage or deploy certain mechanical or other systems in the commercial building for purposes of preparing the written inspection report. However, it is not possible to engage or deploy many systems in a commercial building, including fire suppression systems, and thus determination of whether such systems are properly functioning or otherwise in need of repair, replacement or maintenance is beyond the scope of this basic commercial building inspection. The SCOPE OF WORK outlining the specific elements of the commercial building to be inspected by INSPECTOR under this Agreement is attached hereto and incorporated by reference as EXHIBIT A. Where noted in the written inspection report, INSPECTOR may recommend, and CLIENT acknowledges that such may be necessary, that CLIENT hire a professional engineer, or other qualified and licensed professional, to provide an independent inspection and analysis of certain elements that may be beyond the scope of this basic commercial building inspection. Unless otherwise indicated below, CLIENT understands that this basic commercial building inspection EXCLUDES compliance with applicable building codes or testing for the presence of potential dangers arising from asbestos, lead paint, formaldehyde, molds, radon gas, soil contamination, and other environmental hazards or violations.

3. The inspection and report are performed and prepared for the use of CLIENT, who gives INSPECTOR permission to discuss observations with real estate agents, owners, repair persons, and other interested parties. INSPECTOR accepts no responsibility for use or misinterpretation by third parties. INSPECTOR'S inspection of the property and the accompanying report are in no way intended to be a guarantee or warranty, express or implied, regarding the future use, operability, habitability or suitability of the commercial building or its components. Any and all warranties, express or implied, including warranties of merchantability and fitness for a particular purpose, are expressly excluded by this Agreement to the fullest extent allowed by law. If any structure or portion of any structure that is to be inspected pursuant to this Agreement is a log home, log structure or similar log construction, CLIENT understands that such structures have unique characteristics that make it impossible for an inspector to inspect and evaluate them by an exterior visual inspection. Therefore, the scope of the inspection to be performed pursuant to this Agreement does not include decay of the interior of logs in log walls, log foundations or roofs or similar defects that are not visible by an exterior visual inspection.

4. INSPECTOR assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. CLIENT acknowledges that the liability of INSPECTOR, its agents, employees, for claims or damages, costs of defense or suit, attorney's fees and expenses and payments arising out of or related to the INSPECTOR'S negligence or breach of any obligation under this Agreement, including errors and omissions in the inspection or the report, shall be limited to liquidated damages in an amount equal to the fee paid to the INSPECTOR, and this liability shall be exclusive. CLIENT waives any claim for consequential, exemplary, special or incidental damages or for the loss of the use of the commercial building even if the CLIENT has been advised of the possibility of such damages. The parties acknowledge that the liquidated damages are not intended as a penalty but are intended (i) to reflect the fact that actual damages may be difficult and impractical to ascertain; (ii) to allocate risk among the INSPECTOR and CLIENT; and (iii) to enable the INSPECTOR to perform the inspection at the stated fee.

5. INSPECTOR does not perform engineering, architectural, plumbing, or any other job function requiring an occupational license in the jurisdiction where the inspection is taking place, unless the inspector holds a valid occupational license, in which case he/she may inform the CLIENT that he/she is so licensed, and is therefore qualified to go beyond this basic commercial building inspection, and for additional fee, perform additional inspections beyond those within the scope of the basic commercial building inspection. Any agreement for such additional inspections shall be in a separate writing or noted here: ______________________________________________________________________________________________ _______________________________________________________________________________________________________________________.

6. In the event of a claim against INSPECTOR, CLIENT agrees to supply INSPECTOR with the following: (1) Written notification of adverse conditions within 14 days of discovery, and (2) Access to the premises. Failure to comply with the above conditions will release INSPECTOR and its agents from any and all obligations or liability of any kind.

7. The parties agree that any litigation arising out of this Agreement shall be filed only in the Court having jurisdiction in the County in which the INSPECTOR has its principal place of business. In the event that CLIENT fails to prove any adverse claims against INSPECTOR in a court of law, CLIENT agrees to pay all legal costs, expenses and fees of INSPECTOR in defending said claims. CLIENT further understands that any legal action against InterNACHI itself allegedly arising out of this Agreement or INSPECTOR's relationship with InterNACHI must be brought only in the District Court of Boulder County, Colorado.

8. If any court declares any provision of this Agreement invalid or unenforceable, the remaining provisions will remain in effect. This Agreement represents the entire agreement between the parties. All prior communications are merged into this Agreement, and there are no terms or conditions other than those set forth herein. No statement or promise of INSPECTOR or its agents shall be binding unless reduced to writing and signed by INSPECTOR. No change or modification shall be enforceable against any party unless such change or modification is in writing and signed by the parties. This Agreement shall be binding upon and enforceable by the parties and their heirs, executors, administrators, successors and assignees. CLIENT shall have no cause of action against INSPECTOR after one year from the date of the inspection.

9. Payment of the fee to INSPECTOR (less any deposit noted above) is due upon completion of the on-site inspection. The CLIENT agrees to pay all legal and time expenses incurred in collecting due payments, including attorney's fees, if any. If CLIENT is a corporation, LLC, or similar entity, the person signing this Agreement on behalf of such entity does personally guaranty payment of the fee by the entity.

CLIENT HAS CAREFULLY READ THE FOREGOING, AGREES TO IT, AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS AGREEMENT.

______________________________________________________________

FOR INSPECTOR

_______________________________________________________________

CLIENT OR REPRESENTATIVE

EXHIBIT A

SCOPE OF WORK

Under this Agreement and as part of this basic commercial building inspection, INSPECTOR and CLIENT agree that the following elements shall be inspected pursuant to the noted limitations:

11. Sample Professional Services Contract language (between inspector and special consultant)

This PROFESSIONAL SERVICES CONTRACT, ("Contract") made this ____________ day of __________________, 200____, is entered by and between _________________________________, a professional home or building inspector (referred to herein as the "Inspector"), and __________________________________, a professional consultant licensed or certified in the field of ___________________________, ("Consultant"), for the solicitation and delivery of professional consulting services as more specifically set forth in the following terms and conditions of this Contract.

RECITALS

WHEREAS, This Contract relates to the inspection of a structure (referred to herein as the "Property") located at the following address: _________________________________________________________, and

WHEREAS, This Contract is made in conjunction with the Inspector's separate contract with a third-party client ("Client") for a general inspection of a residential or commercial building, and

WHEREAS, the Inspector requires the professional services (referred to herein as "Services") of the Consultant as described in the "Statement of Work," attached hereto and incorporated into this Contract as "Exhibit A," in the performance of the general inspection for the Client, and

WHEREAS, the Inspector intends to utilize the work product produced in the course of the Services as described herein to assist in the general inspection of the Property and the preparation of a written inspection report for the Client, and

WHEREAS, the Inspector is a member of the National Association of Certified Home Inspectors ("InterNACHI") but InterNACHI is not a party to this Contract and the Consultant acknowledges that InterNACHI is not a party to this Contract and that InterNACHI has no control over the Inspector or representations made by the Inspector and does not supervise the Inspector, and

WHEREAS, the Inspector seeks to hire an outside Consultant to perform these Services, and the Consultant is available and prepared to provide the required Services, and

WHEREAS, both parties agree to the rendering of such Services on the terms and conditions hereinafter set forth.

NOW, THEREFORE, the parties hereto agree as follows:

1. PURPOSE AND SCOPE. The Inspector engages the Consultant to perform the Services herein described in this Contract to assist the Inspector in the inspection of the Property and to supplement the Inspector's written inspection report to his third-party Client. The Consultant agrees to faithfully and diligently perform the Services consistent with the standards of practice in the Consultant's professional community, and in return the Inspector covenants to use best efforts to cooperate with the Consultant in the completion of such Services and to honor the compensation provisions outlined herein. The Consultant shall proceed with the Services upon execution of this Contract by both parties.

2. PERFORMANCE OF SERVICES.

A. Independent Contractor. The Consultant is an independent contractor and shall not be considered an employee of the Inspector. Accordingly, the Consultant is not subject to the direct control of the Inspector. In the performance of the Services, the Consultant retains the right to control the methods and means of performance. Consultant understands that Inspector does not carry and insurance that would cover any injury suffered by Consultant while performing his duties as required by this Contract.

B. Consultant's Personnel. The Inspector acknowledges and authorizes the Consultant to engage the assistance of persons either under the Consultant's employ or acting as independent contractors to complete certain components of the Services contemplated by this Contract.

C. Hiring of Sub-contractors. The Inspector authorizes the Consultant to hire other professionals or experts, as may be required from time to time, to complete the Services contemplated under this Contract. Should additional expenses or fees apply beyond the fees contemplated herein, the Consultant agrees to seek prior approval from the Inspector and the parties shall execute a written agreement to reflect such new payment or fee requirements.

3. PAYMENTS AND EXPENSES.

A. "Flat Fee" Contract. For professional services rendered by the Consultant, the Inspector agrees to pay the Consultant a flat fee of $____________________.

B. Expenses. In addition to payments described in this paragraph, the Inspector agrees to reimburse the Consultant for actual expenses agreed to by the parties in writing and in advance of incurring such expenses.

C. Method of Payment. The Consultant shall submit a written request for payment upon completion of the Services. Upon receipt of such payment request, the Inspector will then cause payment to be made to the Consultant not later than ten (10) days after receipt of such request.

4. RESPONSIBILITIES OF THE PARTIES.

A. Inspector. The Inspector agrees to cooperate with the Consultant and grant access to the property, information and documentation controlled by the Inspector with the Client's authorization. The Inspector hereby agrees that it will make available to the Consultant in the performance of Services herein, whether public or private, all reports, references, documentation, or other information held by the Inspector on behalf of the Client that is necessary for the Consultant to complete the Services contemplated herein.

B. Consultant. The Consultant agrees to diligently and professional perform the Services herein. The Consultant agrees not to communicate directly with the Client, and all such information, documentation, or communication resulting from the performance of the Services herein shall be directed only to the Inspector. The Consultant acknowledges that the relationship between the Inspector and the Client is private and confidential, and agrees not to interfere in any way with such relationship. Further, the Consultant grants the Inspector all rights to the work product resulting from the performance of Services under this Contract and acknowledges that the Inspector may elect to deliver all, part or none of said work product to the Client, and the Consultant expressly grants the Inspector permission to discuss the work product of the Consultant's Services hereunder with the Inspector's Client and other real estate agents, owners, repairpersons, and other interested parties. The Inspector accepts no responsibility for use or misinterpretation by third parties of the Consultant's work product hereunder.

5. TERM. Upon execution by the undersigned parties this Contract shall become effective and enforceable by both parties upon the latest date signed by either party and shall continue in full force and effect through the completion of all Services, unless terminated earlier by operation of and in accordance with this Contract. This Contract may only be extended thereafter by mutual written agreement of the parties.

6. TERMINATION. This Contract may not be canceled or terminated except for cause upon the default or material breach by the other party. Written notice of termination or cancellation shall be delivered immediately upon determination of default and shall be made to the other party according to the notice provisions established herein. Upon termination, this Contract shall become of no further force or effect whatsoever and each of the parties hereto shall be relieved and discharged here from, subject to payment for Services rendered prior to such termination. Notwithstanding the foregoing, the provisions of this Contract concerning confidentiality, indemnification, jurisdiction, and severability shall survive termination of this Contract.

7. DEFAULT AND REMEDIES.

A. Default. The failure to perform any obligation required under this Contract shall constitute default.

B. Remedies. Upon said breach or default and notice of termination, the party in default must immediately commence to cure such breach to avoid termination or cancellation of this Contract. Failure to cure said default within seven (7) days of notice of termination will result in cancellation of this Contract.

8. WORK PRODUCT. All documents, reports, records, notes, data, samples, information, processes, and materials of any kind resulting from the performance of Services under this Contract shall jointly become the property of both the Consultant and the Inspector. Such parties may use such information, etc., as necessary under this Contract so long as none of its provisions are violated by such use.

9. FORCE MAJURE. Neither party shall be liable to the other for failure to perform under this Contract if such failure to perform arises out of causes beyond the control and without the fault or negligence of the nonperforming party. Such causes may include, but are not limited to, acts of God or the public enemy, fires, floods, epidemics, quarantine restrictions, freight embargoes, and unusually severe weather.

10. INDEMNIFICATION. The Consultant shall indemnify, defend and hold harmless the Inspector and its officers, agents, employees, successors and assignees from any and all claims, lawsuits, losses and liability arising out of failure to perform any of the Consultant's duties and obligations hereunder or in connection with the negligent performance of the Consultant's duties or obligations, including but not limited to any claims, lawsuits, losses or liability arising out of the Consultant's malfeasance. Concurrently, the Inspector shall indemnify, defend and hold harmless the Consultant and its officers, agents, employees, successors and assignees from any and all claims, lawsuits, losses and liability arising out of failure to perform any of the Inspector's duties and obligations hereunder or in connection with the negligent performance of the Inspector's duties or obligations, including but not limited to any claims, lawsuits, losses or liability arising out of the Inspector's malfeasance.

11. CONFIDENTIALITY. Both parties agree to keep confidential all documents, data compilations, reports, computer programs, and any other information provided under this Contract from one party to the other party. Neither party shall reveal such confidential information to any person or entity, either during the term of this Contract or at any time thereafter. Upon expiration of this Contract, or termination as provided herein, each party will return materials which contain any confidential information to the other party. Each party may keep one copy for its confidential file. For purposes of this paragraph, confidential information is defined as all information disclosed to the Consultant which relates to the Inspector's past, present, and future activities, as well as activities under this Contract, which information is not otherwise of public record. Concurrently, the Inspector acknowledges that the work product of the Consultant is a valuable asset and agrees to keep confidential all such information relating to the Consultant.

12. WARRANTIES. Performance of the mutual promises and covenants herein creates no express or implied warranties, and each party shall in no way be responsible or otherwise liable for any consequential damages that may arise under this Contract.

13. DISPUTES.

The parties shall make a good faith effort to settle any dispute or claim arising under this Contract prior to engaging in litigation. If the parties fail to resolve such disputes or claims, each party hereby consents to enter non-binding mediation to be held in the jurisdiction in which the Inspector keeps its primary place of business, the cost of which is to be shared equally by the parties. If a satisfactory result is not obtained in mediation, litigation may then be pursued. In the event of a claim against either party, the claimant agrees to supply the other party with the following:

A. Written Notification. Written notification of adverse conditions within 14 days of discovery, and

B. Access to the Property. Access to the Property.

Failure to comply with the above conditions will release the non-claiming party and its agents from any and all obligations or liability of any kind. Neither party shall have a cause of action against the other if more than one year passes from the date of the completion of Services hereunder, or termination of this Contract by its terms, before such claim is made. If litigation ensues under this Contract, the party that fails to prevail in such action shall be liable to pay the prevailing party's legal fees and costs, including attorney's fees, if any.

14. NOTICE. All notices, consents, approvals, requests and other communications ("Notices") required or permitted under this Contract must be given in writing and mailed by first-class mail to the last address given by one party to the other.

15. APPLICABLE LAW AND VENUE. The parties agree that any litigation arising out of this Contract shall be filed only in the Court having jurisdiction in the County in which the Inspector has its principal place of business. In the event that the Consultant fails to prove any adverse claims against the Inspector in a court of law, the Consultant agrees to pay all legal costs, expenses and fees of the Inspector in defending said claims. The Consultant further understands that any legal action against InterNACHI itself allegedly arising out of this Contract or the Inspector's relationship with InterNACHI must be brought only in the District Court of Boulder County, Colorado.

16. ASSIGNMENT. Neither party shall assign or otherwise transfer any of the rights or delegate any of the duties set forth in this Contract without the prior written consent of the other party, which shall not be unreasonably withheld.

17. INSURANCE. The Consultant shall carry those insurance policies for errors and omissions as customarily held in the Consultant's profession or field of expertise. The Inspector carries those certain insurance policies as described as follows: ________________________________________________________________________________________________________________

18. SUCCESSORS AND ASSIGNS. This Contract shall inure to the benefit of and be binding upon the legal representatives and successors of both parties, to the extent allowed by law.

19. PAYMENT OF TAXES. The Consultant shall pay all taxes and other such amounts required by federal, state and local law, including but not limited to federal and social security taxes, workers' compensation, unemployment insurance and sales taxes.

20. NON-EXCLUSIVITIY. Nothing in this Contract shall be construed to prevent either party from performing the same or similar services contemplated herein for and on behalf of additional clients, whether or not said third parties are in direct competition with the either party's business operations.

21. AMENDMENT. All Services shall be completed during the term of the Contract. This Contract may only be amended or extended by written agreement of both parties. Any changes, change orders, modifications, revisions or other amendment to this Contract shall be mutually agreed upon by the parties and shall be incorporated by written instrument, executed and signed by all parties to this Contract.

22. ENTIRETY OF CONTRACT. This Contract represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations and agreements, whether written or oral.

23. SEVERABILTIY. If any part of this Contract is found to conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with said laws, but the remainder of this Contract shall be in full force and effect.

24. TIME IS OF THE ESSENCE. Time is of the essence in all provisions of this Contract.

25. TITLES AND HEADINGS. Titles of paragraphs are for reference only, and shall not be used to construe the language in this Contract.

26. WAIVER. The waiver of any breach of any term or condition in this Contract shall not be deemed a waiver of any prior or subsequent breach.

27. EXECUTION. Execution of this Contract by signature of the party or its authorized representative certifies that each has read and understood the contents of this document, that each agrees to be bound by the terms of this Contract, that each has had opportunity to review it with a legal representative of their choosing, and that each has the authority to execute this Contract. If the party executing this Contract is a corporation, LLC, or similar entity, the person signing this Contract on behalf of such entity does personally guaranty payment of the fee by the entity.

IN WITNESS WHEREOF, the parties hereto have executed this Contract.

The INSPECTOR, The CONSULTANT,

By: _______________________________ By: __________________________________

DATE _____________________________ DATE _______________________________

EXHIBIT A

STATEMENT OF WORK

Under this Contract and as part of this Professional Services Contract, the Inspector and the Consultant agree that the following elements shall be included under this Statement of Work and shall constitute the Services to be performed hereunder:

12. InterNACHI's Standard Accessibility Inspection Report for Existing Commercial Buildings

12.1 About this accessibility inspection report

Various laws around the world require public accommodations to provide goods and services to people with disabilities on an equal basis with the rest of the general public. Businesses benefit from the patronage of all people. Those who own, lease, lease out, or operate places of public accommodation should have as a goal the identification and reduction of physical barriers to this patronage. This inspection report will help identify possible accessibility deficiencies in existing facilities.

12.2 Who must comply

Most laws regarding accessibility only regulate new construction and remodeling and do not oblige existing building owners to reduce barriers if such reduction is not readily achievable. This report does not cover all of the possible local, state, provincial and federal requirements regarding accessibility or barrier reduction. The information presented within this report was derived from a visual-only inspection of the property and is intended solely as informal guidance, and is not a determination of legal rights or responsibilities.

12.3 Stand alone inspection service option

This report may be offered in conjunction with a complete commercial building inspection or offered as a separate, stand-alone inspection service.

12.4 The Accessibility Inspection Report

____________________

Accessibility Inspection Report

Key:

Y = Yes. The statement is true and accessibility appears to be fine.

N = No. The statement is false and accessibility appears to be deficient.

U = Unknown. Inspector did not determine accessibility.
N/A = Not applicable.

1. Parking

1.1___There are enough accessible parking spaces (8 feet wide plus 5 foot access isle).

Total number of parking spaces	Number of accessible parking spaces needed
1 to 25	1
26 to 50	2
51 to 75	3
76 to 100	4
101 to 150	5
151 to 200	6
201 to 300	7
301 to 400	8
401 to 500	9
501 to 1,000	2% of total number of parking spaces
over 1,000	20 plus 1 for each 100 over 1,000

1.2___The accessible parking spaces are marked with the International Symbol of Accessibility.

1.3___The accessible parking spaces are the closest spaces to the accessible entrance of the building.

1.4___The accessible parking spaces have access isles that are part of the accessible route to the accessible entrance of the building.

2. Route of Travel

2.1___There is a route of travel from the accessible parking spaces to the accessible entrance that does not require the use of stairs.

2.2___The route of travel is at least 36 inches wide.

2.3___The slopes on the route of travel are not greater than 5% (1" rise/20" run).

2.4___The route of travel is stable, firm and slip resistant.

2.5___The curbs on the route of travel include ramped curb cuts with a width of at least 36 inches.

3. Ramps

3.1___Ramps longer than 6 feet have railings on both sides.

3.2___Railings are sturdy and between 34 and 38 inches high.

3.3___Ramps are stable, firm and slip resistant.

3.4___There is a 5 foot long level landing at the top and bottom of every 30 foot horizontal length of ramp and at every ramp switchback.

4. Entrance

4.1___The main entrance is accessible or there is a ramp or a lift or an alternative accessible entrance.

4.2___All inaccessible entrances have signs giving directions to the nearest accessible entrance.

4.3___The accessible entrance door has at least 32 inches of clear opening.

4.4___The accessible entrance door has at least 24 inches of clear wall space on the pull side of the door, next to the handle.

4.5___The accessible entrance door handle is no higher than 48 inches.

4.6___The accessible entrance door handle is operable with a closed fist (accessible to a person with limited use of his/her hands).

4.7___The accessible entrance door can be opened without too much force (less than 8.5 lbs force).

4.8___The accessible entrance threshold is not a trip hazard or wheel chair barrier (less than ¼ inches high or less than ¾ inches high with bevels on both sides).

4.9___The automatic door closer (if one exists) on the accessible entrance takes at least 3 seconds to close the door.

5. Interior

5.1___The interior carpeting is low-pile and tightly woven.

5.2___There are no noted hindrances to a person who uses a cane.

5.3___The corridors are at least 36 inches wide.

5.4___The corridors have wheelchair passing spaces at reasonable intervals (less than 200 feet) or intersecting corridors that can be used as passing spaces.

6. Restroomss

6.1___Public rest rooms include at least one fully accessible rest room on an accessible route of travel.

6.2___The inaccessible rest rooms have signs that give directions to accessible one.

6.3___Pictograms or symbols are used to identify rest rooms.

6.4___Accessible rest room door handles are no higher than 48 inches.

6.5___Accessible rest room door handles are operable with a closed fist (accessible to a person with limited use of his/her hands).

6.6___Accessible rest room doors can be opened without too much force (less than 5 lbs force).

6.7___The accessible rest room entry configuration provides adequate maneuvering and turn around space (60 inches in diameter) for wheelchairs.

6.8___The path to all fixtures in the accessible rest room is at least 36 inches wide.

6.9___The accessible rest room stall door is operable with a closed fist (accessible to a person with limited use of his/her hands) inside and out.

6.10___The accessible rest room has at least one wheelchair accessible stall that provides adequate maneuvering space for a wheelchair.

6.11___The wheelchair accessible stall has grab bars behind and on the side wall nearest the toilet.

6.12___The wheelchair accessible stall has a toilet seat that is 17 to 19 inches high.

6.13___The wheelchair accessible stall has a toilet seat that does not spring back to a lifted position.

6.14___The accessible rest room has at least one urinal with a rim no higher than 17 inches above the floor.

6.15___The accessible rest room has at least one lavatory with a 30 inch wide by 48 inch deep clear space in front of it.

6.16___The accessible rest room lavatory has a rim no higher than 34 inches.

6.17___The accessible rest room lavatory has at least 29 inches of knee space between the floor and the bottom of the lavatory apron.

6.18___The accessible rest room lavatory has no hot pipes or sharp surfaces underneath that could harm a person in a wheelchair.

6.19___The accessible rest room lavatory faucet can be operated with one closed fist (accessible to a person with limited use of his/her hands).

6.20___The accessible rest room lavatory faucet (if self closing) permits the water to flow for at least 10 seconds.

6.21___The accessible rest room soap dispensers and hand dryers are within reach of a person in a wheelchair and are operable with one closed fist.

6.22___The accessible rest room mirror (if provided) is mounted with the bottom edge of the reflecting surface no higher than 40 inches.

7. Elevators

7.1___The passenger elevators are located on an accessible path of travel.

7.2___The passenger elevator doors have a clear opening of not less than 36 inches.

7.3___The passenger elevators have wheelchair turning spaces that are at least 68 inches wide by 51 inches deep.

7.4___The passenger elevators have controls that are not higher than 54 inches for side approach and not higher than 48 inches for front approach.

7.5___The passenger elevators have controls that are labeled in raised Braille.

7.6___The passenger elevators serve all public levels of the building.

8. Other

8.1___Notes regarding additional observed barriers are attached.

8.2___Exhibits are attached.

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13. The future of this standard

The International Standards of Practice for Inspecting Commercial Properties is a living document. Revisions will be made and posted at www.nachi.org/comsop.htm

InterNACHI is currently focusing on:

· Developing green building standards to add this standard.

· Assisting companies that produce reporting software for commercial inspectors.

· Delivering education and training for commercial inspectors.

· Creating a sample questionnaires for use in interviewing clients and sellers.

· Examining the incorporation of infrared cameras into commercial property inspections.

· Producing versions of this standard in various languages.

Please offer suggestions for improvements to this standard and join us in our message board discussion regarding this standard at: http://www.nachi.org/forum/showthread.php?p=275613

InterNACHIcomsop-2007

Revised 01/09/2008

International Standards of Practice for
Inspecting Commercial Properties

6. Walk-Through Survey

7. Report

8. Limitations, Exceptions & Exclusions

9. Ethics

10. Inspection Agreement

11. Consultant Contract

12. Accessibility

13. Future of Standard

How to make your own clean copy of this SOP.