Dilapidation report

Before excavation, demolition or piling starts, an inspector visits each adjoining property and records its condition room by room and elevation by elevation. Existing cracks are photographed, measured and marked on a plan. External items such as fences, driveways, retaining walls, kerbs, footpaths and road pavement are recorded too.

Copies usually go to the builder, the owner of each inspected property and, where it is a consent condition, the council or certifier. After the works finish, or when a neighbour raises a complaint, a second inspection is done and compared against the first. Anything new or worse becomes the starting point for a damage discussion. Anything already recorded generally does not.

For a deeper look, read What is a Dilapidation Report? A Builder's Complete Guide. Try the free Dilapidation Report Builder.

In Australia the requirement usually comes from the development approval, not from a single piece of legislation. Councils commonly add a condition of consent requiring dilapidation reports on adjoining properties before excavation or demolition, particularly where there is a basement, deep excavation, piling, vibration or rock breaking close to the boundary.

Other common triggers include:

• Council and road assets. Many councils require a report on the footpath, kerb, gutter and road in front of the site, and may hold a bond against damage.

• Utility and rail authorities. Work near sewer mains, stormwater assets or rail corridors can require condition surveys of that infrastructure.

• The contract. Head contracts and subcontracts often require the builder to obtain reports even where the consent does not.

• Insurance. Contract works and public liability insurers may expect them on higher risk excavation jobs.

Wording and timing differ between councils and states, so read the actual consent conditions. Some require the report to be lodged with the certifier before a construction certificate or building permit is issued.

A useful report is specific enough that someone who has never visited the site can tell what was there. It should include the property address and inspection date, the names of people present, a site plan showing where each photo was taken, clear dated photos with a scale or measurement for each crack, a written description of each defect, and notes on any areas the inspector could not access.

If a neighbour refuses access, record the refusal in writing and photograph what can be seen from the boundary or street. That record is still worth having.

• Starting work before the report is done. Once the excavator is on site, every crack next door looks like your crack.

• Photos without context. A close up of a crack with no location, scale or date is close to useless in a dispute.

• Skipping the public domain. Damaged kerbs and footpaths at the end of a job are often charged against the builder unless there is a record they were already damaged.

• Not sending a copy to the neighbour. Giving the owner a copy and asking them to confirm it builds trust and makes later claims easier to resolve.

• Forgetting the final inspection. Without a post-construction report there is nothing to compare against.