In May 2020, a real estate developer performing excavation work in New York was sued by a neighboring property owner for property damage. A court overturned an injunction preventing the developer from continuing excavation work after reviewing a preconstruction assessment that showed the damage to the neighboring property was preexisting—not caused by the excavation (see Feldman v. 3588 Nostrand Ave. LLC as an example)

A preconstruction assessment is one of the most important tools in the arsenal of a developer protecting itself from neighbors bringing claims for property damage. Part two of this series will review the benefits of risk mitigation tools recommended for developers such as postconstruction assessments and monitoring during construction.

Preconstruction Assessment Overview

A preconstruction assessment is a review of a property adjacent to a site where demolition and/or construction activities are to take place. The goal of the assessment is to establish baseline conditions by conducting an inspection of buildings and infrastructure, including identification of existing damage to improvements, so that causation of any alleged damages can be more easily determined.

Reprinted courtesy of Joshua Levy, Josh Neudorfer & Madeleine Bailey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Mr. Levy may be contacted at joshua.levy@huschblackwell.com
Mr. Neudorfer may be contacted at jneudorfer@thesigmagroup.com