FRI (Single-Let) Audit

Audits of properties under a Full Repairing and Insuring (FRI) lease form a key part of an effective risk management programme to maintain good visibility of an asset to the property owner, investor or insurer. FRI Audits highlight any implications for insurance and asset protection, whilst also providing mitigation relating to reputational risks.

What are the benefits?

FRI Audits help ensure asset protection, preservation of asset value and
prevention of long-term property compliance issues. Additionally, FRI
Audits provide visibility of compliance and risk to the asset owner,
making it easier to provide assurance that assets are being well-managed
and protected. Helpful in preventing potential incidents and possible
litigation, FRI Audits can also help protect against reputational issues,
of particular significance, given the current climate surrounding fire safety
scrutiny in the UK.

Many investors mitigate these risks by undertaking FRI Audits on their
properties to ensure that any safety risks to their asset are identified and the occupiers are complying with any safety related clauses within their leases (usually specifying that they comply with the law). FRI Audits also provide a useful opportunity to review the general upkeep and compliance standards of the occupier. In some cases, FRI Audits can financed through a risk management fund provided by the insurer.

How can the S2 Partnership help?

The S2 Partnership will undertake a full property inspection of FRI sites including the following elements:

  • General information about the property, including site description, use, and occupiers’ information
  • Observation of how key safety management issues are being controlled by the occupiers, (where those issues could impact on the asset, reputation and civil liabilities), including Asbestos Management; Water Hygiene Management (Control of Legionella); Fire Safety Management
  • Visual inspection of building structure, its physical condition, maintenance, general appearance and housekeeping, including waste, vermin and pests
  • Visual inspection of fire systems, electrical and gas services, plant and equipment
  • Inspection of site for significant environmental issues, including pollution, flooding and other actual or potential environmental liabilities

A report will be produced following each visit, detailing observations identified.