What is a dilapidation report?
A dilapidation report is an essential process that involves an independent visual inspection of nearby surfaces and structures before any construction or demolition projects begin. This procedure includes capturing high-resolution photographic imagery or video of the existing conditions of buildings and structures. The report highlights any notable damages or defects, which are then shared with all stakeholders involved.
Conducting a dilapidation report is crucial because construction activities, especially those involving heavy machinery, can adversely affect neighbouring properties. This can result in various damages, such as cracks in walls, undermined foundations, and damaged landscaping or fences. By having a pre-construction dilapidation report, both homeowners and builders benefit: homeowners gain peace of mind knowing their property is documented and protected, while builders and contractors have the assurance that they won’t be held accountable for any pre-existing damage near their work sites. Additionally, if any damage occurs after the construction work takes place, the report can serve as vital evidence to claim compensation for repair costs.
Who requires a dilapidation report?
A variety of individuals and organizations make use of dilapidation reports. These include contractors, developers, local government authorities, railway and road operators, and asset owners.
- For homeowners and asset owners, the purpose of conducting a dilapidation survey is to thoroughly assess the condition of your property before any significant works begin in the neighbouring sites. An experienced inspector should be hired to inspect the premises and document any pre-existing issues, both in written form and by taking pictures. This process is essential so that potential financial difficulties can be avoided should damage to existing structures occur during development, construction, or demolition. With this survey and finding out what damage was already present, it will be easier to distinguish between new damages and existing ones when submitting claims for damages.
- For companies involved in demolition and construction works, investing in a dilapidation report can also be highly beneficial. Not only will it protect your business from any false claims, but it also saves you from spending time, energy, and money on legal fees or repair costs. By expending a bit of money upon a dilapidation report right at the beginning of your project, you’ll guarantee your company is protected against unexpected damages or court action.
What is the Difference Between Dilapidation Report and Forensic Engineering Investigation Report?
Dilapidation reports only contain photographic records of the existing condition of a property before construction or development activities occur nearby. This report differs significantly from a forensic investigation report, which is only used when there is already some form of damage present and the owner is curious to know the exact causes of the damage. Unlike building defects reports and forensic investigation reports, which aim to determine the root causes of any existing damage to a building, a dilapidation report is preventative. It is conducted to ensure that the responsible party can be identified and held liable for repair costs if new damage occurs during nearby construction works. Due to the nature of a dilapidation report, in case of any existing damage to the property, its cause will not be investigated.
What are the Benefits of a Dilapidation Report?
A dilapidation report provides a detailed assessment of the condition of a building or property before any construction or excavation work takes place. It is beneficial for many reasons, including:
- Dispute and Legal Claim Protection: It can help protect property owners from potential disputes or legal claims from neighbouring property owners who may allege damage caused by the construction work.
- Protection for Contractors: It can also protect contractors from false claims of damage caused by their work.
- Evidence in Legal Disputes: A dilapidation report can also be used as evidence in court if a dispute arises, as it provides an objective record of the condition of the property prior to the construction work.
- Identification of Pre-existing Damage: The report can also help identify any existing damage or defects in the property, which can be useful for property owners who are looking to sell or lease their property.
- Risk Management: It can also help contractors identify potential risks or hazards that need to be addressed before beginning work. For example, if a dilapidation report identifies that a neighbouring property has a cracked foundation before excavation work, the contractor can take measures to prevent any further damage to the foundation during their work.
- Assessment of Footing Stability: In some instances, as part of the dilapidation survey, a floor level survey of nearby buildings can be conducted before and after demolition or construction work. This can help determine if the footings have been undermined, allowing for the assessment of any potential impact on the stability of the structures and preventing future structural issues.
Overall, a dilapidation report provides an important risk management tool for both property owners and contractors, helping to prevent disputes and legal claims, and ensuring that all parties are aware of the condition of the property prior to the construction works.
Why Should You Get a Dilapidation Report?
A dilapidation report is an essential tool that should not be overlooked when beginning a project. They are invaluable in resolving disputes with other parties and protecting a contractor’s insurance history. Below is a list of some of the benefits of a well-documented and detailed dilapidation report:
- Precautionary Measure: Conducting a dilapidation survey is an essential precautionary measure. Building inspectors or engineers have one job to take care of during dilapidation surveys. They document the building condition before construction begins on a neighbouring property. This includes taking high-quality pictures of every existing damage, such as cracks to internal and external walls, water damage to floors, walls and ceilings, leaning of the fences, etc. The purpose of this report is to prove the building’s original condition. By conducting this type of independent study, both parties are presented with unbiased results to prevent possible disputes or disagreements down the line.
- Knowledge for Builders and Contractors: Builders and contractors can gain knowledge about the initial state of nearby surfaces and structures before any changes occur. By carrying out a survey in advance, builders gain a better understanding of adjoining structures and can formulate proper precautions to shield them from any foreseeable disturbances, such as the undermining of the footings, movement, vibration or water overflow. Additionally, once construction is completed, the survey will be used to ensure that all areas are restored to their original condition.
- Rapid Settlement of Disputes: Accurately assessing the condition of a property before the commencement of construction or demolition is essential to achieve a rapid settlement of any disputes with third parties. Without conducting dilapidation reports, it may become difficult to determine who was responsible for any additional damage incurred afterwards, leading to potentially costly legal battles. Dilapidation reports are key in preventing costly issues arising from submitting claims for damages that may be difficult to prove as new.
- Valuable for Contractors and Insurance Brokers: A dilapidation report can be invaluable for contractors, builders, and insurance brokers. Not only does it help to protect and preserve a contractor’s insurance claims record, but it also aids in securing Construction Liability Cover. To save time and money that could otherwise be wasted on expensive disputes with adjoining neighbours, it is wise to have a professional dilapidation report done before any demolition or construction begins near neighbouring buildings. This prevents them from becoming victims of falsified and fabricated claims brought on by dishonest neighbouring parties who seek to profit from any possible oversights.
What Should Be the Credentials of the Surveyor Who Compiles Dilapidation Reports?
When compiling dilapidation reports, it is important to make sure that all necessary information is included. Though these reports are not overly technical, we recommend that an experienced building inspector or structural engineer with a good understanding of buildings and structures, who pays close attention to details, conducts these reports. This ensures that all aspects of the survey are thoroughly covered. In addition, it is worth noting that dilapidation surveys are often requested for multiple buildings at once, so having a highly-trained team of inspectors or engineers on hand is critical for managing projects efficiently and cost-effectively.
How Long Does a Dilapidation Report Take to Prepare?
The duration of a dilapidation report preparation varies depending on several factors, such as the size and complexity of the property, the number of buildings involved, and the level of detail required. Typically, a dilapidation report may take anywhere between a few days to a few weeks to prepare. For smaller properties with fewer defects, the survey can be completed in a shorter amount of time. Conversely, larger and more complex properties with multiple defects may take longer to survey and prepare a report. The involvement of multiple parties, such as the landlord, tenant, and contractor, can also increase the time required to prepare a dilapidation report.
The surveyor will first conduct a site visit to inspect the property and identify any existing defects or potential issues that may arise during the construction or demolition of nearby buildings. The surveyor will then compile a detailed report which includes photographs, the location of each photographed defect/damage, and schedules of condition. The report must be carefully reviewed and edited before the final version is delivered to the client.
Factors Affecting Report Preparation Duration
- The availability of the surveyor.
- The scope of the survey.
- The complexity of the legal requirements for the report.
The timing of the survey can also affect the duration of the report preparation. For example, if the survey is conducted during peak construction season, the report may take longer to finalize due to increased demand for surveying services.
Summary
If you’re planning to secure your residential or commercial property or if you’re in the construction industry, it is crucial to conduct a comprehensive dilapidation survey before initiating any construction work. This survey will provide you with assurance and prevent you from incurring hefty expenses on repairs. A thorough dilapidation survey that’s meticulously documented should be regarded as a wise investment and an integral part of your construction risk management plan.
