Dilapidation reports

What is a dilapidation report?

A dilapidation report is a detailed record of your property's condition before construction, demolition, or excavation work begins on an adjoining or nearby property. It documents existing defects, cracks, settlement, and structural condition with photos and written descriptions.

If the neighbouring work causes damage to your property — cracks from vibration, settlement from excavation, or structural movement — the report provides baseline evidence of what existed before the work started.

When do you need a dilapidation report?

You should arrange a dilapidation report when:

• A multi-storey building is being constructed next door
• Deep excavation or basement work is planned nearby
• Major demolition is scheduled on an adjacent site
• Your property is within 10 metres of the work site
• The developer or council requests one as a permit condition
• You're concerned about potential construction damage

Timing is critical: The report must be completed before construction begins. Once work starts, you can't prove whether damage existed beforehand.

What does a dilapidation report include?

• External inspection: Walls, foundations, driveways, fences, paving
• Internal inspection: Walls, ceilings, floors, doors, windows
• Photographic evidence: Detailed photos of all areas
• Written descriptions: Existing cracks, settlement, defects
• Measurements: Crack widths, floor levels, wall plumb
• Structural assessment: Condition of foundations and load-bearing elements

How much does a dilapidation report cost?

Typical costs:

• Unit or small house: $400–$600
• Large house: $600–$800
• Commercial property: $800–$1,500+

Some developers will pay for neighbouring dilapidation reports as a goodwill gesture or permit requirement. Ask the developer or builder if they'll cover the cost.

Who should conduct the report?

Dilapidation reports should be prepared by:

• Building inspectors (licensed where required)
• Structural engineers
• Building surveyors with dilapidation experience

The inspector must be independent — not associated with the developer or builder. This ensures the report is impartial and admissible as evidence if a dispute arises.

What happens if damage occurs?

1. Stop and document: Take photos of any new cracks or damage immediately
2. Notify the builder/developer: Report the damage in writing
3. Arrange a follow-up inspection: The same inspector should assess new damage
4. Compare reports: The before-and-after reports prove damage is construction-related
5. Claim for repairs: Present evidence to the developer's insurer

State-specific requirements

New South Wales

Under NSW building regulations, developers must notify neighbouring owners before deep excavation. Some councils require dilapidation reports as a consent condition.

Victoria

The Building Act 1993 (Vic) requires builders to take precautions against damage to adjoining properties. Dilapidation reports are often required for deep excavation near party walls.

Queensland

QBCC recommends dilapidation reports for properties within 10 metres of major construction. Some councils mandate them for high-risk work.

Common questions

Can I do my own dilapidation report?

No. If you need to claim for construction damage, an independent professional report carries far more weight than DIY photos. Courts and insurers require reports from qualified inspectors.

What if the developer refuses to pay for damage?

If your dilapidation report proves damage is construction-related and the developer refuses to pay, you can:

• Lodge a claim with the developer's insurer
• File a complaint with your state's building commission
• Pursue civil action through your state tribunal (VCAT, NCAT, QCAT, etc.)

Next steps

If you've been notified of upcoming construction next door, arrange a dilapidation report before work starts. Get quotes from building inspectors experienced in dilapidation reporting.