What is Due Diligence?
According to Wikipedia:
“Due diligence” is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition.
Protecting Your Investment
When purchasing a new facility, various factors come into play. When it comes to the fire protection systems, those factors can be a matter of life and death. Hiring an experienced fire protection engineer to investigate the fire protection systems that were already installed in a new investment will ensure that those systems in the facility will perform in the manner in which they were designed, helping to reduce risk and liability. Performing due diligence on fire protection systems provides facility owners with a better understanding of the anticipated costs associated with developing the new site and helps to uncover potential cost-saving alternatives.
Due Diligence at Work
When a commercial developer was considering the purchase of a facility in Indiana to use as a warehouse distribution center, they brought in our fire protection engineers to evaluate the fire protection systems that were already installed in the facility. The detailed due diligence review revealed numerous issues that affected the safety of the facility. One major concern was the private fire service main, which was listed for fire protection service with a maximum rated working pressure of 150 psi. However, the normal working pressure of the fire protection system was designed to be between 165 and 175 psi. Accordingly, the existing system was not in conformance with the standards of the National Fire Protection Association (NFPA), which were referenced by the applicable building and fire codes. Our fire protection engineers were able to provide a solution to reduce the discharge pressure from the fire pump so that the underground piping would not be exposed to pressures in excess of 150 psi, while at the same time ensuring proper functioning of the sprinkler systems in a fire event.
Why Should You Contact a Fire Protection Engineer to Perform Due Diligence?
Experienced fire protection engineers can provide facility owners with a highly detailed analysis and the most accurate fire risk assessments of existing facilities that result in cost effective solutions that help to protect investments. They will uncover the true cost of a site’s fire protection systems and provide solutions that save money and time.
By Jeff Harrington, CEO and Founder of Harrington Group, Inc.