dilapidation report sydney
  • February 9, 2021
  • Effective Building
  • 0

If you’re building or renovating and are accountable to another party, a dilapidation report may be essential. Effective Building & Consultancy offer comprehensive dilapidation inspections for commercial and residential properties. If you need to maintain accountability, or prove what work was and wasn’t done by you, book a dilapidation report today. Book now and we can have a complete report ready in as little as 48 hours. Talk to an experienced building inspector today.

In this article, we’ll cover everything you need to know about dilapidation reports, and more.

What is a Dilapidation Report?

A dilapidation report details the comprehensive record of the general condition of a property and neighbouring property at a specific point in time, whether that’s a building or the land it’s on. It documents any existing damage, parts of the property to be aware of, any parts of the property that need to be protected and other issues. 

Most builders get a dilapidation report to prove the state of a property after construction work has taken place, to ensure there is no damage or change to surrounding properties. This is especially useful for working with heritage-listed buildings, as you can prove no damage has been done to the original property.

Why Should You Get a Dilapidation Report?

If you’re building, renovating or demolishing on or around existing property, there’s a good chance you’ll need a dilapidation report. Types of proposed building works that usually require a dilapidation report include a new unit building (particularly if there are underground garages), new house construction, renovation or alteration works, road works, underground tunnelling or demolition. 

Most builders will get a pre and post dilapidation report to ensure they’re completely covered in the event something goes wrong or a dispute is raised. This will help eliminate any frustration in a claim for damages from the Council, your neighbours, stakeholders, or any other Authorities. 

An initial pre-dilapidation inspection report is undertaken prior to any construction works commencing so that any cracking and/or damage to the neighbouring properties and/or council assets can be documented to protect both parties from any potential claims. 

A final post-dilapidation inspection report is undertaken on completion of the building works and any changes are documented. This way, remedial works can be undertaken and any disputes can be resolved by presenting the dilapidation report as a piece of evidence. 

Local councils usually request a dilapidation report prior to most construction sites beginning, so any bonds taken can be returned on completion of the construction works if the outside of a building site such as pathways, kerbing, drainage, road and any other conditions of the surrounding Council property is not damaged.

Who Should Get a Dilapidation Report?

1. Builders Before Starting a Construction Job

As population increases and sites receive better protection, many construction projects take place in built-up areas. Moreover, the demolition and renovation model is becoming more popular.

In some cities, large high-rise buildings are replaced with modern safer, and more efficient buildings. Although this construction style is welcome news of residents and councils alike, it also has risks.

a. Check the Council Assets

Before any building work, the council must be notified about the damage which may already exist to footpaths, channel, and kerb, road assets, nature strips, drainage pits, and more.

The Council Assets Protection aids in ensuring public assets and infrastructure aren’t damaged as a result of building work being carried out in the municipality.

To ensure that council assets aren’t damaged, Sydney must be notified about the existing damage which also applies under the City of Sydney Act 1988 No 48. This information is also noted in the dilapidation report.

Notify Sydney of Asset Damage

Builders/contractors’ vehicles and machines can cause damage to Sydney assets. If notification isn’t received by builders, the repair costs would be shouldered by ratepayers. If this were to happen, services to residents and capital work programs would be cut.

Within five days before the commencement of construction, the builder/permit holder must provide written notice to Sydney City Council’s office of any existing damage to council assets, in the form of a pre-construction compliance report.

b. Check the Neighbouring Properties

Construction, excavation, or demolition work can have an adverse impact on nearby properties. The vibration from digging equipment and compactors can damage neighbouring assets. These include structural walls, concrete driveways, and retaining walls and fences.

When working on sites, a major priority here is to ensure that nearby properties are protected from damage. Construction workers might have to work with neighbouring walls and connected foundations.

Sites often need huge amounts of material transferred and demolition requires heavy machinery. With deep excavation needed for high-rise buildings, damage can occur through vibration or erosion.

Damage leads to disputes. This can be expensive to both the construction company and its clients. By acquiring a comprehensive dilation audit before work starts, the potential risks can be identified and quantified and plans can change to reduce risk.

2. Civil Contractors

a. Before Commencing Road Works

If the proper precautions aren’t taken, road works can easily cause building faults in nearby properties. Problems such as broken fences, cracked brickwork or paving, landscaping damage, or water ingress can all result in costly repairs. 

Getting a dilapidation report can protect you from damage repair costs. If road work is set to commence, you can safeguard your interests by getting a dilapidation report from Effective Building & Consultancy, which will document the current existing property condition. That way, you’ll have no question when it comes to proving that damages have occurred because of road works.

3. Home Owners

a. Before Renting a Property

For homeowners, there’s a risk that future renters might not treat your property with respect, resulting in damages and costly repairs.

With a dilapidation report, you can assure that damages to the property are evident and can be compensated for.

It’s important to note that as a homeowner, you shouldn’t expect the property to be returned in brand new condition, rather only the condition specified in the lease agreement. If you’re making a claim of a broken contract, wear and tear should be taken into consideration.

Schedule of condition is a record of the property state at the start of tenancy. It acts as a reference for the property’s condition later on in the contract. This is an important aspect of property leasing, as any damages can be noted and the person responsible can be identified. 

Dilapidation reports can be used too during restoration. If there’s a need for repairs, they can be used to restore the property to its original state. 

4. Commercial Tenants

a. Before Moving In

Before entering into a lease, it is vital for a tenant to assess carefully and understand the lease covenants. This applies particularly to those which relate to repair and redecoration obligations and statutory matters. In this way, the tenant is aware of how the landlord might expect the building to be handed back at the end of the tenancy. 

The property condition at the beginning of a lease can often be irrelevant if the tenant has obligated contractually to hand the property back in good repair. This is because the tenant may be committed to putting right pre-existing defects as well as those which have occurred during the tenancy. 

Effective Building & Consultancy can often help a tenant mitigate this position and obtain protection from a dilapidation claim at the end of a lease. It is possible by arranging a schedule of conditions to incorporate into the lease at the outset. This provides a reference to existing defects to exclude from future claims.

What Does an EBC Dilapidation Report Sydney Cover?

Our dilapidation report covers some important areas in your property.

These areas include:

  • Internal walls – ceilings, cornices, architraves, skirting boards, and flooring. The inspectors check these areas for cracks or defects.
  • External walls – cracks, defects, subsidence, or structural movement.
  • Existing damage – cracks, and gaps to paving, concrete driveways. It also include pool areas, retaining walls, and fences.

4 Reasons You Need a Dilapidation Report

A dilapidation report is a report from a property survey for certain works. These include building construction, infrastructure projects, developments, and road works. It also includes works on excavations and demolitions.

Damage can be expensive to repair. Hence, it’s often difficult to prove how it happens and who is at fault. This is why a dilapidation report from a survey is necessary.

Here are three reasons you need it:

1. Precautionary Measure

A dilapidation report will note the current condition and structural damages. These also include risky areas. The independent survey will provide a detailed unbiased final report.

2. Helps You Understand the Structures’ Condition Before Construction

Carrying out a dilapidation report before starting work is important. This is because you can assess the structure. Another is that you can ensure appropriate precautions to minimise the damage.

The dilapidation report you will receive can be useful. This is your document to show for site restoration after completing the works.

3. Provides Evidence to Counter Fraudulent Claims, Actions, and Liabilities

Contracts and developers are usually the ones to blame for damage to properties. If you have construction plans, you need to do a dilapidation survey before the work started. This way, you could protect yourself from any liabilities if there are any claims.

4. Controlling Costs

Almost all industries find it challenging to control costs, but given the competitive nature of the construction sector, reducing expenses remains profitable. However, acquiring dilapidation surveys and reports in Sydney are a worthwhile investment for you.

It can keep you out of trouble during legal disputes, let you know about problematic construction plans in advance, and inform you of existing land and structural damages.

Contact EBC for Building Inspections and Dilapidation Reports

Whether you’re a builder, a civil contractor, home owner, or a commercial tenant, you shouldn’t overlook the aspects of construction that may cause you costly repairs and lawsuits. Don’t let yourself be put in the latter state.

A dilapidation report can also provide peace of mind. And when you have less to deal with worries, you can focus more on important things.

Effective Building & Consultancy’s experienced team of building inspectors has extensive knowledge and the required skills to deliver a comprehensive report that will protect your interests.

For more information about dilapidation reports or our other services, including pest inspection and pest report, pre-purchase building inspection, condition report, and general building inspections.

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About Elie Farah

Elie Farah is a Building Consultant with over 25 years of experience in the property industry. Elie has specialised knowledge in development acquisitions, blue-chip properties and inspections, as well as flood-affected and waterfront properties, heritage buildings, bushfire management and existing use rights.

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