4 Questions that answer all you need to know about building dilapidation report

Two Demolition cranes demolishing old row of houses in the Netherlands

When starting a construction project in a built area you must ensure that you are not causing destruction to the nearby properties. Site excavations, building demolitions, material transfer usually requires heavy machinery to carry out the construction work. This type of work can cause serious damage to the neighbouring properties, for example; removing big part of soil can cause landslide leading to building demolition. This type of critical work should be managed with caution to other buildings to prevent sliding into a disputes chain from adjoining properties, however caring will not only aside of this care management a building dilapidation report can save you in this step.

What is building dilapidation report?

A dilapidation report is an inspection report that records all the building’s aspects that can be affected by nearby construction work. This report gets exported at a given point through a site visit to specify the building condition not only as a building but also any surrounding elements as trees, fences, paving, parking, driveways and yards in specific details.

How to calculate the dilapidation costs in the property?

When its deemed that there is damage to a neighbouring property many scenarios can be taken to calculate costs but what should happen first is evaluating the difference between the damaged part, original cost and actual current cost. For example, heavy equipment damaged a big plant pot for a side building pot the following calculation should be done

  • Cost of similar plant pot = 100 €
  • Age of the damaged pot = 3 years
  • The average useful lifespan of this pot = 10 years
  • The remaining used span for this pot 10-3= 7 years
  • Value of plant per year (calculated as the original price divided by the total life span) 100÷10=10 €
  • The final price you should pay for the damaged property owner is (left span X value for pot per year) 10×7 = 70 €

This is the common method in evaluating a damaged part fairly without getting into the dilemma of the owner want you to get a new replacing object and you see that this part was already used. However, it’s the owner’s decision if he wants you to get a new object (according to the calculated value) instead of the old one or give you compensation in turn.

The other scenario if you cause damage to an entity that is not fully damaged. In this case you calculate the total area of this object, value for the total property and subject the damaged area of the harmed object

For example, a garden fence that costs 1000 € in total and with perimeter 50 meters and you only damaged 2 meters Then you should pay:

  • Total cost divided by perimeter or area, 1000÷50 = 20 this is the price per meter
  • Price per meter multiply the damaged part, 20 x 2 = 40 €

In the end, it’s always a good deed to choose benevolence and splendid relations with the surroundings over formal dealings. That’s how a one creates a circle of connections around that encompass future benefits.

Who is responsible for exporting dilapidation survey report?

Dilapidation reports should be done by experienced consultants in the property evaluation and documentation work as it’s a very complex kind of reports. The consultant should start inspection and attach a photo for any defected part in an arranged order. Because these reports are your first-thought defence against claims. If a nearby property claimed dilapidation depending on your construction work the first thing you do is to check if this defect existed before your work or not. Aside from the experienced consultant technological documenting tools should be implemented to ensure accurateness and precision.

When should you execute dilapidation of building report?

Property dilapidations usually take place in two situations first, when a tenant is leaving the rated property and the owner wants to report any sudden defects in his property. Second, when construction work is taking place beside neighbouring properties and you want to keep yourself safe from claims of damage. In the first situation the dilapidation report got exported at the end of the rental period while in the second situation the report takes place on two phases, before starting the construction work to particular document the existing situation and after finishing to document your delivery condition

Finally, the best method to export a dilapidation report is no longer the manual one. Defect tracking and documenting software as PlanRadar can play a great role as you can easily make this report, attach photos or even voice memos on every part of the plan and effortlessly export it afterwards. This way you ensure that you didn’t forget part of the property and ensure preventing any manipulation in such confidential reports. On large scale buildings, we are not talking about a plant pot damage anymore, a construction company can face a claim of damaging whole nearby building in minutes. Only at this point, you understand the value of the building dilapidation report.