Building works damaged your home? The new BCA compensation service

By YPS Malta · Updated 27 October 2026

What's new

Damage to neighbouring homes is one of the biggest sources of disputes in Malta's construction boom. Until now, a neighbour whose property was damaged usually had to chase the developer or go through arbitration or the courts, which could take years.

In September 2026 the Building and Construction Authority (BCA) announced a new service that gives financial assistance to people whose property is damaged by construction works. It applies to works covered by BCA clearances issued from 1 November 2026.

Who can claim

You can turn to the BCA if your property was damaged by construction works on a neighbouring site and you couldn't reach an agreement with the developer or contractor responsible. The BCA acts as an intermediary when the two sides can't settle it themselves.

How it works

1. You submit a claim to the BCA.
2. A BCA-appointed architect assesses whether the damage was caused by the construction works.
3. A committee reviews the claim and decides on the amount. The committee includes an architect, a lawyer and an accountant.
4. You sign an agreement with the BCA, and 50% of the approved amount is paid up front so repairs can start.
5. The BCA recovers the money from the responsible developer, with interest, going to court if necessary.

Assistance is normally up to €15,000, with higher amounts possible in serious cases such as a collapse. The service is funded by contributions from the construction industry, which developers pay when submitting applications to the BCA, not by taxpayers.

Works that started before 1 November 2026

For works under earlier clearances, the existing protections still apply. Under the third-party property regulations (S.L. 623.06), developers lodge a bank guarantee to cover minor damage (€3,000 per storey of each neighbouring property for the first five, plus €1,000 per extra property, up to €40,000). Since 2024 they also need third-party insurance of at least €750,000 under S.L. 623.11. Disputes over damage up to €1 million, where the building's stability isn't affected, go to arbitration.

Protect yourself before works start next door

• Read your condition report. Before works start, the developer's perit must send you a condition report of your property by registered letter. If you disagree with it, tell the BCA within two weeks. Staying silent counts as agreeing.
• Take your own photos and video of walls, ceilings and floors before works start, with dates.
• Check the site notice board for the developer, perit and contractor details and the 24-hour contact number.
• Report problems early to the BCA on 138, or by email to complaints@bca.org.mt.

If you're the one building

As a developer or homeowner doing works, the best protection is good preparation: a thorough method statement, accurate condition reports, licensed contractors and a site technical officer who stops work when something doesn't look right. That's how we run every project. It keeps neighbours on side and keeps claims away.

This guide is general information based on the BCA's announcement, not legal advice. The detailed rules of the service may be updated, so check with the BCA before making a claim.

Frequently asked questions

Sources

• MaltaToday – BCA fund to compensate victims of construction damage to launch after 1 November
• TVM News – BCA to provide financial assistance for construction-related property damage
• Legislation.mt – S.L. 623.06 Avoidance of Damage to Third Party Property Regulations
• Legislation.mt – S.L. 623.11 Construction Sites Insurance Obligations Regulations
• Building & Construction Authority – Customer care