Who Pays for a Dilapidation Report in South Australia?

Understanding who pays for a dilapidation reportdepends entirely on why the report is being prepared and who initiated the process. There is no single rule in South Australia — the answer varies by scenario. Below, we walk through four common situations, explain the relevant SA law, and provide a quick-reference comparison table.

Scenario 1: You (the Property Owner) Initiate the Report

When you decide, on your own initiative, to protect your property by commissioning a dilapidation report before neighbouring construction begins, you bear the cost. There is no council condition requiring the report, and no one has asked you to get one — you are simply being proactive about protecting your investment.

This is the most common scenario for property owners who notice construction activity starting next door and want peace of mind. The cost is your responsibility and is treated as a personal expense. However, a self-commissioned report gives you full control over surveyor selection and timing, and the report belongs entirely to you.

Is It Worth the Investment?

Compare the report cost to the potential expense of repairing construction-related damage without evidence of the prior condition — which could be tens of thousands of dollars that you would struggle to recover from the builder. For most property owners, the cost of the report is a straightforward insurance-like investment. For a breakdown of actual fees, see our Adelaide pricing guide.

Can You Recover the Cost Later?

If damage does occur and you successfully pursue a claim against the builder or developer, you may be able to include the cost of the dilapidation report as a disbursement in your claim. Courts and tribunals generally recognise the cost as a reasonable and necessary expense incurred to protect your interests. However, this is not guaranteed, and recovery depends on the outcome of your claim.

Scenario 2: The Developer Is Required by Council (DA Condition)

When the relevant planning authority (council or the State Commission Assessment Panel) imposes a dilapidation report as a condition of the Development Approval (DA), the obligation falls squarely on the applicant — the developer or builder. They must engage a qualified surveyor, arrange access to the adjoining properties, pay for the report, and provide copies to all relevant parties before any site activity begins.

As the adjoining property owner, you should not be asked to contribute to the cost. The report is a condition imposed on the developer, not on you. If the developer asks you to share the cost, you are within your rights to decline. For more on whether you actually need a dilapidation report in your situation, see our decision guide.

What If You Want Your Own Independent Report?

Even when the developer is arranging a report, you may wish to commission your own independent assessment as well. This gives you a second opinion and ensures you have a report prepared by a surveyor with no connection to the developer. If you choose to do this, the cost of your additional report is your responsibility. The developer is only obligated to fund the report required by the council condition.

Scenario 3: Government or Public Infrastructure Project

When a government entity undertakes infrastructure work — road widening, sewer upgrades, tram extensions, bridge construction, or similar public projects — the responsible agency typically arranges and pays for dilapidation reports on all properties within the affected zone.

In Adelaide, agencies such as the Department for Infrastructure and Transport (DIT), SA Water, and local councils routinely commission dilapidation reports as part of their project management processes. Property owners within the project corridor will usually receive a letter advising that an inspection has been scheduled.

What If the Government Does Not Offer a Report?

Not all government projects include dilapidation reporting as standard practice. If your property is within the impact zone of a public works project and you have not been contacted about a dilapidation inspection, contact the project manager or the responsible agency directly to request one. If they decline, consider commissioning your own report and keep the correspondence as evidence that you raised the issue.

Compulsory Acquisition

In cases where government infrastructure projects involve compulsory acquisition of part of your land or significant impact on your property, the Land Acquisition Act 1969 (SA) provides for compensation. Dilapidation reports can form part of the evidence supporting your compensation claim, and the cost of obtaining them may be recoverable as part of the acquisition process.

Scenario 4: Strata or Community Title Developments

In strata or community title developments, the payment responsibility depends on whether the report covers common property (shared elements such as walls, driveways, gardens, stairwells, and car parks) or individual lots.

Common Property

A dilapidation report covering common property is a legitimate expense of the strata corporation and should be funded from the administrative fund or sinking fund. The decision to commission the report is typically made by the strata committee or at a general meeting of the corporation. All lot owners share the cost proportionally through their regular levies.

Individual Lots

If an individual lot owner wants a dilapidation report on their own unit or townhouse (for example, because their unit is closest to the adjacent construction), the cost is generally the individual owner's responsibility. The strata corporation is not obligated to fund reports on individual lots unless the committee decides it is in the collective interest.

Practical Recommendation for Strata

For strata properties adjacent to significant construction, the most practical approach is usually for the strata corporation to commission a single comprehensive report covering both the common property and the individual lots closest to the works. This ensures consistent documentation and avoids gaps in coverage. The cost is shared among all lot owners.

What South Australian Law Says About Payment Responsibility

There is no specific provision in South Australian legislation that dictates who must pay for a dilapidation report. The payment obligation arises from the practical circumstances rather than a legislative mandate:

• If a council condition requires it, the developer pays because it is their obligation to satisfy the condition under the Planning, Development and Infrastructure Act 2016 (SA).
• If no council condition exists, the party who commissions the report pays.
• The common law duty of care does not create a direct obligation to pay for dilapidation reports, but it establishes the principle that parties who foreseeably might cause damage should take reasonable precautions — which practically means arranging a baseline record.

In cases of dispute over payment, the cost of the report is often a minor issue compared to the cost of the construction and any resulting damage repairs. Most developers view it as a standard project cost and do not resist payment.

Quick Reference: Who Pays in Each Scenario

Cost ranges are indicative for Adelaide residential properties. For a detailed breakdown, visit our dilapidation report cost guide.

Related Resources

• Dilapidation Report Costs in Adelaide— how much you can expect to pay.
• Construction Dilapidation Reports — our service page for construction-related reports.
• Do You Need a Dilapidation Report?— deciding whether a report is necessary in your situation.