FAQ

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.