Fees for commercial inspections

[Randall Clark]

I've only inspected smaller commercial office buildings in the past and my fees are just a little bit higher than similar size/age residential. I now the the opportunity to inspect a large stand-along building (13,000') and looking for suggestions on pricing. I'm going to hire a roofer so that will eat up some of the profit. I could look at this in terms of the amount of time it will take and figure I could inspect X number of houses during the same time, and charge accordingly. Any thoughts?

[Claude Lawrenson]

Fees can vary significantly. I typically would want further information such as the simplicity or complexity of the layout and building systems. Is the building empty or occupied, and possibly full of equipment, etc?

Certainly this could be estimated on a time or approximated hours of work required to complete the inspection. Even the report can be onerous if it is a more complex building.

As an example are there any special reports required such as life safety systems?

So my opinion is a more definitive price depends largely on having more details about what to anticipate.

[Roy Lewis]

It can be different depending where you are at , but I usually charge $.12- $.15 per square foot for warehouses with office space.
However it depends on the structure.. I don't do restaurants.

[Markus Keller]

I charge square foot usually. 12-18 cents plus a charge for the building depending on size and type. Also charge up or down depending on occupancy use and age of components.
Less for warehouse space, more for assembly units or restaurants. I do a fair amount of bars and restaurants. It's important to address liability concerns, egress paths, emergency lighting systems, ADA, etc. You can't do an HI report for these; waste of your time and the client's money.
I have an assembly unit coming up after thanksgiving. When inspecting larger commercial an inspector needs to be able to address issues for the specific occupancy otherwise the client is just getting partial relevant information.
If its a place of public accommodation you should be doing an ADA checklist so your client knows what's going on, potential costs and municipal requirements.

[Carolyn Chambers]

Why did you decide not to do restaurants?

[Roy Lewis]

Why did you decide not to do restaurants?

Too many appliances to have to deal with ..ie fire hoods etc..

[Stephanie Jaynes]

Too many appliances to have to deal with ..ie fire hoods etc..

Also, some home inspection insurance policies have restrictions on the types of commercial inspections you perform. (i.e. square footage, building type, etc.) Not all insurance providers cover restaurant inspections in their home inspection policies.

If you're thinking of adding commercial inspections to your services and don't have a commercial-specific policy, check your home inspection policy or call your provider to make sure you stay within your coverage parameters.

Good luck!

[Lawrence Thomas]

How do you guys quote prices for multi-family apartment buildings? I have only had this come up about 3 times in my 15 years, but I have never won any of those jobs. I've been quoting $50/apartment and asking that some of the units (possibly vacant) be available for a full inspection so that I have some "representative units". Today I got a call about a 26 unit complex. I quoted the guy a fee of $1300 and he never called back to make an appointment...

[Markus Keller]

I don't know what rates are in your area so I can't say whether that is good or bad. At $50 a piece I wouldn't touch it.
Apt cost ranges from $95-$125 per unit depending on size, etc. Plus building cost of $800-$1200+. Its very rare I don't do every single apartment in a building during an inspection. Doesn't matter if its 3 units or 40. Looking at a 'representative sample' of units tends to be the norm for a lot of people but its just stupid from both an inspection and buyer position. If someone wants me to only look at a few units in a big building I tell them to call somebody else. If someone wants to work out a decent unit count on a big building I'll work that out.
I doubt you are losing the jobs on price. You are likely losing the jobs due to other factors. Those might include lack of proper selling, not making the client comfortable with your ability to look at an apartment building, or having just a standard HI report. It is important to have an understanding of what investors are thinking about as part of a purchase and what is important to them.
Apartment buildings or other commercial type inspections are NOT home inspections.

[Gunnar Alquist]

Lawrence,

I am with Marcus on this one. I don't know what Idaho inspection prices are, but I wonder if you might be under-pricing. 26 units, electrical panels, water heaters (often one or two large common tanks), heaters, kitchens, bathrooms, etc is a lot of work. I would probably team up with another inspector to get it done in one day.

I inspect every unit too. I would probably be 4 times your price. As with a similar question on a 12,000 sq.ft. home recently, think about how long it will take you to inspect 26 interior units in addition to the exterior, attic and foundation crawlspace (if present) and then write up a comprehensive report.

For example. The exterior on something that size would take me at least 3 hours. Then, even if I only spent 20 min. in each unit, the interiors would be 9 hours (not counting breaks), 30 min. in each unit would be 13 hours and 40 min. in each would be 16. Then, writing the report would take the better part of a day, even if the majority of the report was boiler plate.

Don't under-value your services.

[Lisa Endza]

https://ccpia.org/how-to-price-a-commercial-building-inspection/

[Tony Escamilla]

I know this is an old post, but thanks for the info. I know I can always find good info on this forum. I'm new to commercial and appreciate the info. Thanks!