Jen Lemen looks at five key risks posed by building materials that APC candidates should be aware of when inspecting and advising on a range of commercial assets.
Inspection is one of the three core commercial real estate RICS APC technical competencies. It must be taken to level 3, which means that candidates must be able to provide reasoned advice and recommendations based on their inspections. This could include preparing a valuation or a marketing report for a client, or advising a client on their statutory responsibilities.
Accurate advice requires diligent inspection, including an appreciation of environmental risks that candidates may encounter when inspecting. Identification of such risks will come from a candidate’s desktop due diligence and physical inspection of the surrounding area, external elements and internal parts.
The RICS Guidance Note Environmental risks and global real estate (1st edition, November 2018) covers the following stages of the property life cycle: land and property acquisition, disposal and asset management. RICS comments that “environmental considerations can sometimes be seen as benefits, in the sense of contributing value, as well as liabilities – with every situation needing to be considered individually”.
So what are some major environmental risks candidates need to be aware of at level 1 (knowledge), and how can this knowledge then be applied to practical examples at level 2 (doing) and level 3 (advising)?
Reinforced autoclaved aerated concrete
RAAC is a construction material used primarily in the roofs of public buildings, constructed from the 1950s to the 1990s. Candidates will no doubt have heard of RAAC in the press over the past few months, following the Department for Education’s warning over failure of RAAC (and subsequent roof collapse) in operational school buildings.
RAAC is a lightweight form of concrete that looks a bit like an Aero chocolate bar in texture (it has a bubbled appearance) and is often white or light grey if it remains undecorated. RAAC panels are typically 600mm wide with V-shaped grooves between panels, which can be found in walls, floors and ceilings. Construction plans or details may also refer to RAAC suppliers such as Siporex, Durox, Celcon, Hebel and Ytong.
If a commercial real estate candidate was to inspect a building and suspect the use of RAAC in its construction, the issue should be brought to the client’s attention immediately. A recommendation of further inspection by a building surveyor or structural engineer should be made, given the imminent health and safety risk and likelihood of remedial works being required. Candidates should further be aware of the risk of asbestos-containing materials in close proximity to RAAC, particularly given the likely date of construction (when asbestos was still legal to use).
Regent Street disease
Candidates may come across Regent Street disease, typically when inspecting office buildings constructed of a steel frame embedded with a facing stone, such as Portland stone, or brickwork. There was little room for expansion or movement between the two construction elements. Affected buildings were generally constructed between 1900 and 1950 and are not only found in London, but also in other locations such as Manchester (where it is known as Deansgate disorder) and Bristol.
In RSD, moisture penetrates through the outside facing and corrodes the metal frame underneath. This expands and can lead to cracking and structural failure of the external walls of the building. Again, if a candidate suspects RSD or notes cracking within a building that they inspect, the steps identified for RAAC should be followed.
High alumina cement
HAC was developed in the 1920s and used until the late 1970s. It is a type of cement containing calcium aluminates, rather than calcium silicates, which allowed it to be manufactured and develop strength quickly and to be resistant to chemical attack. In buildings, it is typically found in pre-cast concrete beams. Unfortunately, HACs can undergo a chemical “conversion” (known as crystalline rearrangement) which actually reduces its strength and makes it more prone to chemical attack, particularly when it is exposed to moisture for a prolonged period. This can lead to structural failure of concrete beams, eg in roofs. If HAC is suspected, then the steps identified in respect of RAAC and RSD should be followed – candidates could identify a suspicion of HAC through desktop due diligence and inspection, based on the age and construction type of the building.
Calcium chloride
Calcium chloride was used as an admixture to speed up the setting of concrete until the mid 1970s. It is no longer used as it can lead to corrosion of steel reinforcements within concrete framework. This can lead to longitudinal cracking, walls bulging and leaning and eventual structural failure. Specialist investigations and testing may be required to diagnose the cause of cracking as the use of calcium chloride, so the steps above should again be followed.
Mundic
Mundic is a type of concrete block containing mining aggregates (pyrite or iron pyrites). It was typically used from 1900 to the late 1950s (or in some places, up to 1965) in parts of Devon and Cornwall. Over time, sulphite minerals in the mundic block oxidise, particularly in damp conditions, producing sulphuric acid.
This reacts with the cement, leading to structural weakness, decay and expansion. Areas where mundic is likely to be used can be identified from geology maps and from local knowledge.
If mundic is suspected to have been used in construction, then candidates will need to refer to the guidance in the RICS Guidance Note The mundic problem (3rd edition, December 2015).
This provides guidance on mundic classifications, testing and providing further advice. Valuation surveyors will need to be aware of the potential impact of mundic on mortgageability and value.
Further reading and resources
- RICS guidance note Environmental risks and global real estate
- Government guidance on RAAC
- RICS guidance note The mundic problem
- RICS, RAAC: Advice and FAQs
The quick quiz
1. When was asbestos finally banned in the UK?
- a) 1990
- b) 1999
- c) 1993
2. In which of these countries is asbestos still regularly used in construction (in some forms)?
- a) France
- b) USA
- c) China
3. Which of these are alternative terms for RAAC?
- a) Aero bar
- b) Aircrete
- c) Aerated panels
Jen Lemen BSc (Hons) FRICS is a co-founder and partner of Property Elite
