The short answer
Under the Act, responsibility for damage to neighbouring property sits with the building owner, even if the contractor caused it. So the building owner must protect themselves through the building contract, not assume damage is simply the contractor’s problem.
Why it matters
The building owner is responsible for damage caused by works under the Act; the contractor does not owe the same duties to the adjoining owner, so the building owner may have to make good or compensate even where the contractor was careless. The building contract should require the contractor to carry out works carefully and in accordance with the award, make good damage to adjoining property, reimburse the building owner for reasonable sums paid to the adjoining owner, maintain appropriate insurance, and cooperate with inspections and party wall procedures. This does not remove the building owner’s liability under the Act, but it shifts the financial burden back to the contractor where appropriate. Where damage is alleged, the surveyors may determine whether the works caused it, the repair method, whether making good or compensation is appropriate, and the reasonable cost — avoiding court if it is within jurisdiction.
What to do now
- Make sure the building contract requires the contractor to work to the award, make good damage, reimburse you, insure properly and cooperate with party wall procedures.
- Retain enough money under the contract and avoid releasing final payment too early.
- Keep the contractor available to return and make good defects or damage.
- Distinguish incomplete contract works from party wall damage.
Common mistakes
- Assuming damage is purely the contractor’s responsibility.
- Releasing final payment before party wall inspections are complete.
- Failing to put the right obligations in the building contract.
When to call Coburns
If you are about to start notifiable works, send us the position and we will make sure your party wall and contract protections line up.