PROJECT DUE DILIGENCE - 6827

Real estate due diligence consists of the identification of title, environmental, and site issues, and a determination of whether these issues affect value, desirability, or utility, of a property for a proposed state use.  Departments, or DGS on behalf of departments, are responsible for conducting real estate due diligence for any capital outlay project.  If there are issues identified, the department must explain how these issues will be resolved.  Sections 6824, and 6828 through 6832 indicate when real estate due diligence must be completed, depending on project phase and procurement method.

PWB requires a Summary of Conditions letter or other document outlining all findings of due diligence and identifying any recommendations for the mitigation of any known condition on or off the property that may affect the state’s intended use of the property.

As part of the bond sale for lease revenue bond-funded projects, there may be additional refinements required to the Summary of Conditions letter or other document. Contact your Finance capital outlay budget analyst for additional information.