Who Pays for a Dilapidation Report in Tasmania?

Scenario 1: The Developer or Builder Pays

This is the most common scenario in Hobart and across Tasmania. When a dilapidation report is a condition of the development approval, it is the developer's or builder's responsibility to arrange and pay for the assessment. The condition is placed on their development permit, making it their obligation to fulfil.

From the developer's perspective, this cost is a standard project expense, similar to engineering fees, survey costs, and council application fees. It is typically budgeted into the overall project cost from the outset. For most residential developments in Hobart, the cost of dilapidation reports represents a small fraction of the total project budget but provides significant protection against damage claims.

The developer usually engages the dilapidation report professional directly, selecting a qualified inspector and managing the access arrangements with neighbouring property owners. While the developer pays for and manages the process, the inspector must operate independently and provide an objective assessment regardless of who is paying.

For developers planning projects in Hobart, understanding the typical costs of dilapidation reports helps with accurate project budgeting.

Scenario 2: The Homeowner Pays

In some situations, the homeowner or affected property owner chooses to independently commission a dilapidation report at their own cost. This typically occurs when the nearby construction does not have a council condition requiring a dilapidation report, but the property owner is concerned about potential damage to their property.

While it may seem unfair to pay for a report that protects against someone else's construction activity, the investment is usually worthwhile. Without a baseline dilapidation report, proving that construction caused damage becomes extremely difficult and often impossible. The cost of a residential dilapidation report is modest compared to the potential cost of unrecoverable repair bills.

Homeowners may also commission their own report when they are dissatisfied with the developer-appointed inspector or want an independent second opinion. Having your own report provides an additional layer of evidence should a dispute arise.

Check whether you actually need a report by reading our guide on when a dilapidation report is required.

Scenario 3: Government or Authority Pays

When government infrastructure projects affect private properties, the relevant government department or authority is typically responsible for arranging and paying for dilapidation reports. This applies to state government road projects, local council infrastructure works, TasWater sewer and water upgrades, and TasNetworks electrical infrastructure projects in and around Hobart.

Government-commissioned dilapidation reports often cover a larger number of properties along the corridor of work and may be more comprehensive than privately commissioned reports. The government agency will typically engage a panel of approved assessors and manage the entire process, including liaising with affected property owners about access.

If government infrastructure works are planned near your Hobart property and you have not been contacted about a dilapidation report, contact the relevant authority or reach out to us for guidance on how to request one.

Scenario 4: Strata Body Corporate Pays

In strata-titled developments in Hobart, the body corporate (owners' corporation) may be responsible for arranging and funding dilapidation reports that relate to common property. When construction occurs nearby that could affect common areas such as shared driveways, building facades, car parks, or structural elements, the cost is typically borne by the body corporate fund.

If the construction is being undertaken within the strata scheme itself (such as a lot owner renovating their unit), the lot owner performing the work may be required by the body corporate to fund dilapidation reports of common property and adjoining units before work commences. This requirement is often codified in the strata by-laws or imposed as a condition of the body corporate's consent to the work.

For external construction near a strata development, the developer of the adjacent project would typically be responsible for the cost, similar to the standard developer-pays scenario described above. The body corporate committee should check the developer's DA conditions and ensure that common property is included in the scope of any required dilapidation reporting. Our construction services page has more information.

What Does Tasmanian Law Say?

There is no specific Tasmanian legislation that prescribes who must pay for a dilapidation report. The obligation arises from the conditions attached to development approvals under the Land Use Planning and Approvals Act 1993, which is administered by local councils.

When a council imposes a dilapidation report condition on a development approval, the obligation falls on the permit holder (the developer) to arrange and fund the report. This is a condition of their permit, and failure to comply can result in enforcement action by the council, including potential stop-work orders and fines.

For independently commissioned reports where there is no council requirement, the cost is borne by whoever engages the professional. There is no legal mechanism to compel a developer to pay for a dilapidation report that is not a condition of their approval, although it may be in their commercial interest to do so.

If construction damage does occur and can be linked to the developer's work through dilapidation reports, the developer may be liable for repair costs under common law principles of negligence and nuisance. The dilapidation reports serve as evidence in establishing both the damage and the causal connection to the construction activity.