Ian Enser-Armstrong, Executive Director at JLL MENA, emphasizes how dilapidation surveys transform incomplete buildings into valuable assets, benefiting all stakeholders
Dilapidation refers to the decay and deterioration of structures, often linked to ageing buildings that are close to the end of their lifespan. However, in several instances across the Middle East, significant project delays have resulted in dilapidation occurring even before construction is finished. Dilapidation surveys can identify the scope required to help transform incomplete buildings from eyesores and financial burdens into valuable assets, benefiting all stakeholders involved in the construction process.
Understanding dilapidation reports
A dilapidation report, also known as a building condition report, is a comprehensive document that details the condition of a property or structure at various stages throughout the construction process. These reports typically combine written descriptions with photographic evidence to provide a thorough assessment of the asset’s physical state.
The primary purpose of a dilapidation report is to serve as an objective, factual record of a building’s condition. This documentation is particularly valuable in addressing legal or contractual disputes between property owners and contractors. By establishing a clear baseline of the building’s condition before construction begins and at different stages throughout the project, these reports provide an essential reference point for all parties involved.
Moreover, dilapidation reports serve multiple secondary purposes. They help contractors identify potential risks and hazards associated with the construction process, allowing for the implementation of appropriate risk management measures. For regulatory agencies, these reports play a crucial role in ensuring public safety is maintained throughout the construction process and beyond.
Why it’s important
The foundation of an effective dilapidation report lies in conducting thorough and comprehensive surveys. While the specific details of these surveys may vary depending on the nature and scale of the project, several key elements are consistently important.
One critical aspect is the necessity of conducting “intrusive” surveys that incorporate full live power. This approach allows for a more in-depth assessment of the building’s condition, including its mechanical, electrical, plumbing (MEP) systems and other vital infrastructure components.
Advanced technology plays an increasingly important role in preparing effective dilapidation reports. The use of Artificial Intelligence (AI), cutting-edge LIDAR scanning technologies, drones, and various sensors enables surveyors to accurately assess both the physical and functional elements of a project. These technologies provide a level of precision and detail that was previously unattainable, offering invaluable insights into the condition of the property.
The importance of accurate measurement and data collection cannot be overstated. As the saying goes, “you cannot quantify the cost or benefit of any component of a project if you cannot first measure it.” This principle is particularly relevant to dilapidation reports, where precise measurements and detailed data form the foundation for all subsequent analysis and recommendations.
Integrating data for actionable insights
While accurate data collection is crucial, the true value of dilapidation reports lies in the integration of this information with other building systems to create practical and actionable insights. This is where Building Information Modelling (BIM) comes into play.
BIM has become mandatory for major projects across the Middle East, and for good reason. These digital representations of the physical and functional characteristics of a building provide an excellent framework for incorporating dilapidation reports. By integrating the data from dilapidation surveys into BIM models, stakeholders can gain a more comprehensive understanding of the project’s current state and potential future.
This integration allows for more effective planning and decision-making. For example, it can help identify areas where repairs or upgrades are most urgently needed, or where potential safety hazards exist. It can also assist in prioritizing tasks and allocating resources more efficiently, ultimately contributing to the successful completion of stalled projects.
Benefits for stakeholders
Completing stalled construction projects offers significant advantages to various parties involved in the construction process.
For contractors, the completion of these projects means access to payments tied to construction milestones, which is becoming an increasingly common feature in many construction contracts. Additionally, resolving contractual disputes through the use of dilapidation reports can help alleviate the blame and shame often associated with these stalled projects. This can have a positive impact on a contractor’s reputation and future business prospects.
Building owners stand to be the biggest beneficiaries of completing dilapidated construction sites. Half-finished assets in general hold far less value than their completed counterparts. By bringing these projects to completion, owners can significantly increase the value of their assets. Furthermore, failing to complete projects on time and within budget poses significant reputational risks for both owners and contractors, potentially impacting their ability to secure future projects. In some cases, such situations can even threaten their entire business model. Therefore, the successful completion of stalled projects can help mitigate these risks and preserve the long-term viability of their operations.
Regulatory authorities also stand to benefit from the completion of long-stalled construction projects. These unfinished structures are not only visual eyesores but also serve as ongoing reminders of regulators’ inability to create a conducive legal environment for promoting development and resolving contractual disputes. By facilitating the completion of these projects through the use of dilapidation reports, regulatory bodies can demonstrate their commitment to urban development and their ability to address complex construction challenges.
Moreover, given the harsh climatic conditions in the Middle East, stalled projects can quickly deteriorate into public health hazards, creating additional problems for government agencies and other regulators. Completing these projects helps eliminate these potential health and safety risks, contributing to the overall well-being of the community.
Paving the way forward
Dilapidation reports are a crucial first step in revitalising stalled construction projects. By providing a comprehensive assessment of a property’s condition and outlining practical strategies for completion, these reports protect the interests of all stakeholders and contribute to the efficient and safe completion of stalled construction projects.
The process of creating and utilising dilapidation reports involves a combination of traditional surveying techniques and cutting-edge technology. From intrusive surveys and advanced imaging technologies to the integration of data with BIM systems, these reports offer a holistic view of a project’s current state and potential future.
The benefits of reviving stalled projects extend beyond the immediate stakeholders to the community at large. Finished buildings contribute to the aesthetic appeal of urban landscapes, promote economic activity, and demonstrate the ability of the construction industry and regulatory bodies to overcome challenges.
As the construction industry in the Middle East continues to evolve and face new challenges, the role of dilapidation reports in resolving disputes and revitalising stalled projects is likely to grow. By providing a clear, objective assessment of a property’s condition and outlining actionable strategies for completion, these reports serve as an invaluable tool in transforming unfinished structures from liabilities into valuable assets.
