Reducing risk on your construction property development

If you work in the construction industry, you likely know that property development comes with a lot of risks. The rewards are great, but the risks are high. So, putting measures in place to reduce risks are essential. One of the biggest risks that are not often the first to be considered, is damage to neighboring properties. While it is reasonable that you should pay to fix any damage caused by your construction, if you aren’t well prepared you could end up paying more than you should.

Hopefully you are already well aware of dilapidation reports but if not, you should be. Dilapidation reports are a risk reduction service offered by professional Quantity Surveyors. They are designed to reduce the risk of false damage claims by assessing the condition of a property that is close by to a construction site. The assessment takes place before and after the construction is complete and will list any damage to the property in a report.

At the beginning of every project it is important to make it a routine to assess the condition of any residential and public/government owned infrastructure that is within the area of influence of new construction projects. This could apply to a new housing estate, apartment complex, roads, bridges or any other major construction project.  The purpose of the service is to ascertain and develop a condition report of these adjacent areas prior to major construction works so that, if anything happens to those areas due to the construction, it is documented and can proceed through a damages and claims process.

So how exactly could this apply to a project? Let’s say a new housing estate being built needs to do blasting to remove bedrock on the construction site.  A dilapidation assessment and report would be conducted in nearby established studies to check people’s house for cracks and damage as well as any existing damage to footpaths and roads. This assessment would be done prior to the blasting and then again following the blasting. Now they have a clear report of what the existing infrastructure looked like in case a resident or council member try to claim building damages as a result of the blasting.  It works like an insurance policy for the developers as without this, any nearby resident could make a claim for damages to be repaired, even if they were already present.

Starting a new development and ready to reduce your risks? Get in contact with Asset Economics today. Our professional quantity surveyors are experts in the construction industry and are only too happy to advise you of your next steps.