Technical Due Diligence DDT- Engineering Services
What is Technical Due Diligence and Why is it Key?
Technical Due Diligence (TDD) is a preliminary technical audit process that evaluates the actual condition of an asset prior to purchase or investment.
Its goal is to thoroughly analyze structural, regulatory, and functional aspects to enable technically sound decision-making.
At Tecno Consultor, we’ve been conducting Technical Due Diligence for over 25 years. Our experience has shown us how this analysis is vital to avoid costly surprises that can turn a promising investment into a financial pitfall.
Types of Technical Due Diligence by Asset
There are different approaches to TDD depending on the asset type:
- Real estate: technical inspection of residential or commercial buildings.
- Industrial facilities: evaluation of operations, safety, and maintenance.
- Energy infrastructure: technical assessment of solar parks, wind farms, or power grids.
In every case, asset review and regulatory compliance checks are essential to ensure investment profitability.
Step-by-Step Process of a Technical Due Diligence
Our TDD process includes:
- Document review: licenses, certificates, and plans.
- On-site technical inspection: structural, systems, and access checks.
- Technical risk analysis and functionality assessment.
- Technical report with findings, recommendations, and estimated corrective investment.
Our specialized team executes each phase with transparency and attention to detail, delivering value from day one.
Main Risks Detected and How to Manage Them
A technical risk assessment commonly identifies:
- Hidden structural defects.
- Non-compliance with urban or technical regulations.
- Immediate corrective works not previously considered.
- Accessibility or safety concerns.
Identifying these issues in advance enables price negotiations, required pre-closing repairs, or even deal cancellation.
Estimated Cost and Duration of a Technical Due Diligence
The cost of a technical consulting service varies depending on the size and complexity of the asset and the depth of the required analysis. Generally:
- Mid-sized property: between €1,500 and €3,000.
- Industrial or energy assets: starting from €4,000 and up.
Average duration ranges between 5 to 15 business days. At Tecno Consultor, we have optimized our workflow to shorten delivery times through an agile, digital process.
Digital Tools and Process Agility
Today we use advanced tools to enhance the efficiency of our technical analysis:
- Collaboration platforms like PlanRadar or Fieldwire.
- BIM software for structural modeling and analysis.
- Cloud systems for real-time document sharing.
These tools allow for faster, more transparent technical inspections for investments, boosting traceability and teamwork.
When to Hire an External Team vs. Handling In-House
Many companies wonder whether they can manage TDD internally. Based on our experience, a technical feasibility study should be independent, impartial, and conducted by technical experts.
At Tecno Consultor, we’ve worked with both investment funds and individual property owners, and in all cases, external oversight brings objectivity and reliability to the table.
How Technical Due Diligence Supports Investors, Transactions, and Concessions
A technical verification is key to:
- Accurately negotiating asset value.
- Uncovering hidden future costs.
- Identifying efficiency or performance upgrades.
- Ensuring regulatory and international standards compliance.
Throughout our career, we’ve seen how TDD can make the difference between a successful investment and an operational disaster.
Trends: ESG, Digitalization, and Industrial Inspections
Emerging standards in sustainability and transparency are reshaping TDD:
- Integrated ESG evaluations (Environmental, Social, and Governance).
- Digitization of processes and technical documentation.
- Use of drones and AI in industrial inspections.
These technologies enable a future-ready technical asset review with added depth and precision.
Frequently Asked Questions About Technical Due Diligence
What’s the difference between TDD and a standard inspection?
TDD is a deeper and more strategic process, focused on investment decision-making. It goes beyond the visible and evaluates risks, regulations, and long-term viability.
Who should perform the TDD?
It should be conducted by qualified experts with proven experience. Ideally, an external firm specialized in technical consulting or engineering services.
What’s included in the final report?
The report includes: asset description, technical findings, legal compliance status, identified risks, estimated costs for corrective actions, and recommendations.
Can a TDD report be used in contracts?
Absolutely. Many of our clients attach the technical report to purchase agreements to formalize price adjustments or pre-agreed repairs.