To navigate the complexities of underpinning, property owners should understand what underpinning is, the significance of underpinning agreements, and how to protect their interests.
What is Underpinning?
Underpinning is a structural enhancement technique used to reinforce the foundation of a building or structure. This process involves excavating and adding additional support to an existing foundation to increase its stability and load-bearing capacity. It becomes necessary when a neighboring property’s development plans involve excavation that extends below the depth of your existing foundation. It is often necessary in urban developments where space is limited, and where a developer is attempting to maximize the use of a development property by extending development close to the property line.
What are Underpinning Agreements?
An underpinning agreement is a legally binding contract that outlines the terms and conditions of the underpinning process. It serves as a crucial document to ensure that the underpinning work is conducted properly and to protect the interests of all parties involved. Such agreements typically include provisions related to:
- Scope of Work: The underpinning agreement should define the specific work that will be carried out as part of the underpinning process. This may encompass modifications to the existing foundation to enhance its stability.
- Timing: Specify the timeline for the underpinning work, including the start and completion dates. A well-defined schedule ensures that the project proceeds smoothly.
- Costs: The agreement should outline all costs associated with the underpinning work, covering materials, labor, equipment, and any other expenses. Clarity on costs helps prevent disputes during and after the project.
- Liability: Determine which party is responsible for any damages or injuries that may occur as a result of the underpinning work. This section is crucial for assigning accountability and mitigating risks.
It’s important to have a written underpinning agreement in place to ensure that all aspects of the work are documented and agreed upon by both parties. This legal contract provides a framework for a successful and secure underpinning project.
What is the Difference Between Shoring and Underpinning?
Shoring and underpinning are both techniques used in construction and property development, but they serve different purposes:
Underpinning involves strengthening the foundation of an existing or planned structure to provide additional support or stability. It’s typically used when neighboring developments require excavation below the depth of your foundation.
Shoring, on the other hand, is the process of temporarily supporting a structure or land during construction or excavation. It prevents collapses or shifts during the development phase but doesn’t involve altering the existing foundation.
Should You Allow Underpinning on Your Property?
Allowing underpinning on your property is a decision that should be made carefully, and it’s advisable to consult with professionals, including engineers and lawyers. Improper, defective, or deficient underpinning can lead to substantial damage, and dealing with such issues can be costly and complex.
What Should You Consider Before Allowing Underpinning on Your Property?
Before agreeing to underpinning on your property, there are several key considerations:
- Consult with Experts: Always consult with an engineer and a lawyer before making any decisions. They can provide expert advice on the feasibility and safety of the underpinning project.
- License Agreement: Consider protecting your interests through a “license agreement” or “access agreement.” This document should outline the terms and conditions under which you’ll allow the underpinning work to proceed.
- Engineer’s Approval: Specify that your engineer must review and approve all underpinning plans and specifications. Periodic inspections of the underpinning work, all at the developer’s cost, can help ensure quality and safety.
- Responsibility for Damage: Clearly state in the agreement that if any damage occurs as a result of the underpinning, the developer is responsible for repairing it.
- Insurance: Ensure that the developer and contractor maintain proper insurance coverage to protect you against defective, improper, or deficient underpinning.
What Kind of Damages Can Underpinning Cause?
Underpinning is a complex process, and when done improperly, it can lead to various forms of damage, including but not limited to:
- Building collapse
- Racked doors – Doors that no longer close properly
- Racked windows – Windows that no longer open or closer properly
- Uneven floors
- Cracking in the foundation and walls
- Shifting of the entire building (leaning)
These damages can be expensive to repair and may cause significant inconvenience.
What are the Benefits of Underpinning Agreements?
While underpinning agreements may seem complex, they offer several benefits:
Legal Protection: An underpinning agreement serves as a legally binding document that protects the interests of all parties involved.
Quality Assurance: With an engineer’s oversight and approvals, underpinning work is more likely to meet high-quality standards, reducing the risk of damage.
Accountability: Clearly defined responsibilities and liability clauses ensure that parties are held accountable for their actions and any resulting damage.
Risk Mitigation: Proper insurance coverage safeguards property owners against potential risks and expenses related to underpinning.
Compensation: The property owner whose land is being underpinned is usually entitled to compensation from the developer for agreeing to an underpinning agreement. In our experience in the current market in Metro Vancouver, this compensation ranges in the five- to six-figure range.
Underpinning agreements play a vital role in property development, ensuring the structural integrity and safety of both existing and neighboring properties. By consulting with professionals, having a well-drafted agreement in place, and considering the key factors mentioned above, property owners can make informed decisions and protect their investments during underpinning projects. For comprehensive legal guidance and assistance in drafting underpinning agreements that meet your specific needs, it’s advisable to consult with an experienced attorney.
ATAC LAW is here to assist you with your underpinning agreement needs. Contact us today for expert legal guidance.
