What is a dilapidation report, and when do you need one?

A dilapidation report is a dated record of the condition of a property, made before nearby construction work starts. It documents existing cracks, damage and wear in enough detail that anyone can later tell what was already there and what is new.

It doesn't assess whether the property is well built or worth buying. Its only job is to be an accurate, independent snapshot.

Why they matter

Construction puts energy into the ground. Demolition, excavation, piling, rock breaking, compaction and even heavy trucks create vibration and small ground movements. Nearby houses respond, and owners start noticing cracks they may never have looked at before.

Without a record, a dispute comes down to one person's word against another's. With a dilapidation report, it comes down to a photo and a measurement. That protects the builder from paying for damage that already existed, and protects the neighbour by making genuine new damage easy to prove.

What's in a good report

• A description of the property and how it's built: walls, floors, roof and footings, as far as can be seen
• A room-by-room and elevation-by-elevation inspection, inside and out
• Every visible crack, with its location, direction, length and width measured with a crack gauge
• Date-stamped photographs referenced to a plan, so each one can be retaken from the same spot
• External elements: fences, retaining walls, paving, driveways, pools and outbuildings
• A numbered schedule of existing defects that the post-construction report can check item by item
• Sign-off by the engineer who did the inspection

The measurements are what separate a useful report from a photo album. "Crack in bedroom wall" can't be compared later. "Diagonal crack from the top corner of the bedroom 2 window, 600 mm long, 0.5 mm wide" can.

When you need one

In NSW, councils commonly include a dilapidation report condition in a development consent where the works involve demolition, excavation near a boundary, basements, piling or significant earthworks. Private certifiers can impose similar conditions on a complying development certificate. Utilities and road authorities sometimes require reports on their own assets, too.

Even when no condition requires it, a report is cheap protection compared with an unresolved damage claim. It's sensible for:

• Swimming pool excavation close to a boundary
• Knockdown-rebuilds and duplexes on narrow lots
• Any work involving rock breaking or vibratory compaction
• Terraces and semis with shared walls
• Road, drainage and civil works beside occupied homes

Pre-construction and post-construction

The first inspection, before works start, is the pre-construction report. When works finish, a post-construction report repeats the inspection and compares every item against the original. We explain the difference in more detail in pre- vs post-construction dilapidation reports.

Who pays

Usually the builder or developer, since the report is their main protection against claims. Neighbours are free to commission their own independent report as well.

Does the neighbour have to agree?

Access is voluntary. Most owners agree once they understand the report protects them too. If an owner declines, the engineer records what can be seen from the street and the building site and notes the refusal, which is itself useful if a claim is made later.