By QED Consulting Engineers — structural & civil engineers, Notting Hill, Melbourne
A dilapidation report — also called a property condition report — records the existing condition of a property before nearby construction, excavation or demolition begins. Its purpose is simple: to create an independent, dated record so that if damage occurs later, everyone can see what was already there and what wasn't.
If you're building near a neighbour, or your property sits beside a development or major infrastructure works, a dilapidation report protects you. Here's how it works.
What is a dilapidation report?
It's a detailed record — usually with photographs — of the visible condition of a property at a point in time. That includes existing cracks, movement and damage to buildings, and often fences, driveways, paths and retaining walls. A report is typically done before works start and again after completion, so the two can be compared.
When do you need one?
Dilapidation reports are commonly needed when:
- You're building close to an adjoining property and excavation, demolition or vibration could affect it
- Protection works obligations apply under Victorian building rules where works may affect a neighbour
- Your property is near major infrastructure — projects such as level crossing removals, rail and tunnel works often require condition records for nearby properties
- You want to protect yourself as a builder or developer against later claims for pre-existing damage
In Victoria, these reports often tie into the Protection Works process under the Building Act. Confirm your specific obligations with your building surveyor.
What's included in a dilapidation report?
A typical report documents the condition of the building and relevant external elements with timestamped photographs and notes, mapped to locations. The detail matters: a thorough before-and-after record is what makes it useful if a dispute arises.
Who pays, and who is responsible?
Generally, the party carrying out the works arranges and pays for the report on the affected adjoining properties — but responsibilities should be agreed clearly before work starts. The value is mutual: it protects the builder from inflated claims and the neighbour from genuine, undocumented damage.
Because the issues at stake are structural — cracking, subsidence, movement from vibration and excavation — engineering insight strengthens a report. Our team works alongside residential and commercial projects across Melbourne where adjoining-property risk needs careful management.
Building near a neighbour or major works? Talk to a Melbourne structural engineer about managing adjoining-property and structural risk.
Frequently asked questions
Who pays for a dilapidation report? Usually the party carrying out the construction or excavation arranges and pays for reports on affected adjoining properties, but this should be agreed before work begins.
Is a dilapidation report a legal requirement in Victoria? It can be — dilapidation surveys often form part of the Protection Works process under Victorian building rules, and some councils and infrastructure projects require them. Confirm with your building surveyor or council.
When should a dilapidation report be done? Before works start, and again after completion, so the property's condition can be compared and any new damage identified.
What's included in a dilapidation report? A photographic, dated record of existing visible damage and the condition of buildings and external elements likely to be affected by the works.
