If a major construction project is happening near your property, you might be wondering how it could affect your home. Heavy machinery, excavation, or demolition work can cause vibration, ground movement, or accidental damage to surrounding buildings. Without proper documentation, it can be difficult to prove whether damage was pre-existing or caused by nearby works, and this can quickly lead to costly disputes.
That’s where a dilapidation report (also known as a condition report) comes in. It records the state of a property before and after neighbouring construction, providing protection for both homeowners and builders.
Key Takeaways
- A dilapidation report (also called a condition report) records the state of a property before and after nearby construction.
- It protects homeowners from paying for damage they didn’t cause and shields builders/developers from false claims.
- Reports include detailed inspections of internal, external, and structural elements, supported by photos and diagrams.
- They are highly recommended (and sometimes council-mandated) before works such as excavation, demolition, road construction, or major utility installations.
- Independent, licensed inspectors must carry them out to ensure accuracy and impartiality.
- The process involves booking, pre-construction inspection, report delivery, and post-construction follow-up, ensuring transparency throughout.
- A dilapidation report is not the same as a building inspection; it documents condition for protection, rather than identifying defects for sale or purchase.
- Without one, property owners risk costly disputes, strained neighbour relations, and being liable for damage they didn’t cause.
Here’s everything you need to know about dilapidation reports, what’s included, and why they matter.
Here’s everything you need to know about dilapidation reports, what’s included, and why they matter.
What is a Dilapidation Report?
A dilapidation report is a comprehensive inspection and documented record of the current condition of the neighbouring properties to a construction project, carried out by a qualified, independent building inspector. The report provides a baseline of the property’s condition before construction begins, making it possible to compare the condition of the property post-construction.
By documenting existing defects, it makes it easier to determine any damage related to the construction project. For this reason, a dilapidation/condition report is invaluable to homeowners. On the other hand, the report also provides legal protection for builders and developers, helping to defend against false damage claims.
Also known as a condition report or dilapidation survey, a dilapidation inspection is required to get a Development Approval (DA) for a project that may cause possible damage to an adjacent or adjoining property and serves as evidence of a property’s state at a given point in time/
A dilapidation survey or report is often requested before and after major construction, demolition or infrastructure projects take place next door, such as when:
- a developer excavates for a new building
- council undertakes road upgrades
- utilities carry out pipe-laying or tunnelling works
By comparing the before-and-after reports, both parties can readily identify any existing building defects as well as damage that might have transpired as a result of the construction work. This proactive step gives property owners peace of mind while helping builders maintain positive relationships with neighbours and avoid costly legal battles.
You can get a copy of a sample dilapidation report here.
Why Are Dilapidation Reports Important?
Dilapidation reports aren’t just a formality; they provide real, practical protection for everyone involved:
- Protects homeowners: Ensures you won’t have to pay for damage caused by someone else’s construction work.
- Protects builders and developers: Prevents false claims by showing what condition neighbouring properties were in before works began.
- Provides legal evidence: If disputes end up in mediation or court, the report serves as a reliable record.
- Improves neighbour relations: Having an independent inspection in place reduces tension and builds trust between neighbours.
What’s Included in the Report?
A detailed condition report by experienced building inspectors involves a full internal and external inspection, supported by written notes, photos, and diagrams. It pays close attention to specific areas that have a high chance of being affected by the project.
Specifically, the inspector will look into the condition of the following details:
External elements
- Cracks in exterior brickwork, concrete, render, or paving
- Condition of roofs, gutters, and fences
- Ground movement or retaining wall issues
Internal elements
- Wall, ceiling, and floor cracks
- Architrave and skirting alignment
- Tile cracks around wet areas (bathrooms, kitchens, laundries)
- Loose or misaligned window and door frames
Other structures
- Sheds, garages, and carports
- Driveways and pathways
- Landscaping features such as pools or retaining walls
The report is signed by the inspector, with copies typically provided to both the property owner and the builder or developer for future reference.
Book a dilapidation report now.
When Do You Need One?
While not required for every project, dilapidation reports are strongly recommended (and sometimes mandated by council) before works that involve major development projects, structure demolitions, infrastructure work and land excavations near your property. Other works that require a dilapidation report include:
- Pipe laying works
- Road or rail construction
- High-rise or multi-dwelling development projects
- Development projects that cause ground vibration
- Major utility works such as water, gas, or telecommunications installation
Whether or not a condition report is required by law in your locality, you should acquire one as a precaution from possible litigation. You also need it for evidence to support damage claims as a settlement.
Who Can Conduct a Dilapidation Report?
To avoid conflicts of interest, dilapidation surveys must be completed by independent, licensed, and insured building inspectors. A builder or developer should never inspect the neighbouring property themselves.
When choosing an inspector, look for:
- Proven experience in property condition reporting
- Membership of a recognised building association
- Clear, photographic evidence included in reports
- Fast turnaround (reports are usually delivered within 24–48 hours)
A professional inspector will meticulously assess and document the current condition of a property before the onset of a heavy construction project or demolition work, and after its completion. Since a dilapidation report is a legal document, the inspectors’ findings cannot be disputed.
If you need a comprehensive report for any property, always ensure that your inspector is a license holder with a reliable reputation, and an independent third party, like Inspect My Home. This way, the dilapidation report is guaranteed to be accurate.
What Happens if You Don’t Get One?
Without a dilapidation report, it becomes difficult to prove whether damage existed before nearby construction works. This can lead to:
- Costly and time-consuming legal disputes
- Neighbourhood tension and loss of goodwill
- Property owners being left to pay for damage they didn’t cause
The Dilapidation Report Process
Arranging a dilapidation report is simple, but it follows a clear and structured process to make sure the inspection is thorough and the findings are reliable. Here’s what you can expect:
1. Booking
Arrange the dilapidation report before construction or demolition starts. At this stage, you’ll typically provide details of the property, the nature of the nearby works, and the expected timeline. The inspector will confirm what areas need to be assessed and arrange a convenient time to access the property.
2. Pre-Construction inspection
The inspector visits the property before any construction or demolition work begins. They carry out a detailed assessment of the property’s current state, both inside and out. This includes photographing and noting even minor issues such as small cracks, loose fittings, or paving movement.
3. Documentation and report delivery
All observations are compiled into a comprehensive, easy-to-read report. This includes:
- Written descriptions of existing conditions
- Photographic evidence of all areas inspected
- Diagrams or sketches where necessary for clarity
- A signed statement from the inspector confirming the accuracy of the record
The report is then finalised and provided to all relevant parties, usually within 24–48 hours. Copies are given to both the property owner and the builder or developer, ensuring transparency on both sides.
4. Post-construction inspection
Once works are complete, the inspector may return to carry out a follow-up inspection. The new findings are compared against the original report to determine whether any new damage has occurred. This comparison is key to resolving potential disputes fairly and efficiently.
5. Resolution (if required)
If new damage is identified, the report provides the evidence needed for property owners to make a claim, and for developers to respond appropriately. Because the process is backed by an independent professional’s findings, disagreements are usually resolved more quickly and with less conflict.
Dilapidation Report vs Building Inspection
While they might sound similar, these inspections serve different purposes:
- Building Inspection: Conducted when buying or selling a property, to identify defects or issues.
- Dilapidation Report: Conducted before nearby construction, to document existing conditions and protect against future disputes.
Dilapidation Report With Inspect My Home
As one of Australia’s most trusted building and pest inspection companies, Inspect My Home provides independent, professional dilapidation reports across the country. Our highly trained inspectors deliver comprehensive reports within 24–48 hours, giving you clear, reliable documentation when you need it most.
If you have construction activities planned nearby, or you’re starting a project that could affect neighbouring properties, get in touch today.
Call Inspect My Home on 1300 337 447 or book an appointment online to arrange your dilapidation report.
Frequently Asked Questions
What is the difference between a dilapidation report and a condition report?
They are the same thing. Both terms refer to an independent property inspection that documents a property’s condition before and after nearby construction activities.
Is a dilapidation report legally binding?
Yes. Because it is carried out by a licensed inspector, the report can be used as evidence in legal disputes or claims.
Who pays for a dilapidation report?
Usually, the developer or builder pays. However, property owners may choose to commission their own for extra assurance.
How long does a dilapidation report take?
Most inspections take between 1–3 hours, depending on property size. The completed report is generally available within 24–48 hours.
Do I need a dilapidation report for small renovations?
Not usually. They’re most important for projects involving excavation, demolition, or large machinery.
What happens if damage is found after construction?
The post-construction inspection will highlight any changes. If new damage is identified, the report helps support a claim for repairs or compensation.
Is a dilapidation report required by council?
In many areas, yes. Councils often make it a condition of Development Approval for major works. Even when not compulsory, it’s highly recommended.
