FAQ
Q. What exactly is a dilapidation Survey?
- It is an independent photographic and written record of a property’s condition at a specific point in time, and documents noted pre-existing cracks, defects, and movement before nearby heavy demolition, excavation, and construction begins.
Q. Do we really need a dilapidation survey report?
A. Unfortunately in an increasingly litigious society contractors are often blamed for damage to third party properties which pre-existed the contractor’s construction activities. This is equally the case where an adjoining property owner has failed to notice pre-existing damage until it is brought in to focus by the contractor’s work. Armed with a dilapidation survey report a contractor can successfully defeat spurious or erroneous demands of third parties for damage to their properties. A pre-construction condition report effectively constitutes a ‘snapshot in time” and as a factual record of third parties property cannot be refuted.
A thorough and comprehensive dilapidation survey is vital for the protection of a contractor’s reputation, financial position and insurance claims history. In fact the existence of a dilapidation survey report can assist a contractor in its negotiations for insurance policy terms, cost effective premiums and the defence of insurance claims.
A dilapidation survey saves the contractor
- Potential legal fees incurred to address the third party demand.
- A policy excess per claim in the event the contractor’s insurance company becomes involved.
- Internal staff time and cost to address demands and or claims
- Compensation payments made to third parties where liability cannot be disputed.
Q. Does the size of our project justify the expenses of a dilapidation survey?
A. There is no doubt that the cost of a dilapidation survey is a cost which many contractors consider is unnecessary. Unless the cost of the survey can be recovered in preliminaries the survey expense is often a dead cost to the contractor. However the absence of a pre-construction condition report exposes the contractor to unjustified claims for damage due to their construction activities.
This is particularly the case where the contractor’s work involves demolition, excavation and sheet piling with associated vibration.
Q. When should the dilapidation survey inspection take place?
- It should happen as close as possible and just prior to the start of construction, and in this sense, timing is critical. Once demolition starts and heavy machinery is on site, the window to establish a clean baseline is gone.
Q. Is a dilapidation survey the same as a pre-purchase building inspection?
- In short, no. A pre-purchase inspection diagnoses hidden defects and the structural integrity of the building for the purchaser. A dilapidation survey logs the baseline condition of the infrastructure and gives a snapshot of its condition at a specific point in time.
Q. Who bears the cost and is responsible for paying for the dilapidation survey?
- In most instances, the builder or developer who carries out the works will fund the dilapidation survey as many local councils including the Gold Coast City Council, Brisbane City Council and Sunshine Coast City Council development approval process frequently mandates a dilapidation survey as a condition of approval. In some instances, an adjacent homeowner or body corporate may also undertake their own independent survey to protect their property.
Q. What areas of the property are inspected for a dilapidation survey?
- Usually, a dilapidation survey will cover internal walls, floors and ceilings and external elevations, driveways/paths, boundary fencing and retaining walls. In addition, many councils, including Brisbane City Council, Gold Coast City Council and Sunshine Coast Council require surveys to cover access road surfaces, footpaths, kerb and channel and local and state authority assets. Surveys for high-rise and apartment blocks, typically seen on the Gold Coast and Sunshine Coast, focus on common areas and individual lots closest to the construction zone or sphere of influence.
Q. Can a neighbouring property refuse access?
- Yes, they can, but refusing access is not a recommended course of action, as it leaves them no recourse in the event of noted damage during demolition and/or construction.
Q. What is the duration of an inspection?
- This depends on the scope of works, but a typical on-site residential survey will take between 2 and 4 hours depending on the complexity of the job, plus the back office time to process and compile the report. A standard digital report can be delivered in 1 to 2 business days. More complex, commercial, and high-rise time frames vary considerably.
Q. Do we need a post-dilapidation survey?
- In many instances, the development approval requires a post-dilapidation survey but is often asked for if heavy vibration was noted during demolition, piling, and excavation, or concerns are raised about damage noticed during construction.