Understanding Ground Anchors and Licence Access Deeds in Sydney Developments

Deep basement excavations are a hallmark of modern Sydney construction. Whether it’s a new apartment building, a commercial tower, or a mixed-use project, sites are often tight and developers need to dig several levels below ground. To do this safely, they rely on ground anchors—a critical but often misunderstood element of construction.

Yet ground anchors don’t just raise engineering questions. They also raise legal and financial ones. That’s where Licence Access Deeds come in. At UpscalePM, we regularly advise strata communities, developers, and landowners on how to navigate these issues so projects proceed safely, fairly, and without dispute.

What Are Ground Anchors?

Ground anchors are steel tendons or rods drilled into the ground at an angle and tensioned to support excavation walls. They are grouted into stable soil or rock, then stressed so that they hold retaining walls in place. Without them, the pressure from surrounding earth could cause basement walls to collapse, placing workers and neighbouring properties at risk.

In dense urban areas like Sydney, ground anchors frequently extend beneath neighbouring properties—not just the project site. This creates a unique challenge: how can a developer use part of a neighbour’s land without trespassing?

Why Licence Access Deeds Are Essential

A Licence Access Deed is a legal agreement between a developer and the adjoining landowners. It grants the developer permission to temporarily access the subsurface of neighbouring land for specific purposes, such as installing ground anchors. Importantly, this access usually applies only below ground—not to the neighbour’s surface land or buildings.

Key protections in a Licence Access Deed include:

• Defined scope – Clearly limits what can be done and where anchors can be placed.
• Time limits – Ensures anchors are temporary and must be removed or de-stressed by a set date.
• Compensation – Provides landowners with a fair licence fee for the use of their property.
• Safeguards – Includes indemnities, insurance, and liability clauses to protect owners if damage occurs.
• Professional costs – Requires the developer to cover the landowner’s legal, engineering, and strata management costs.

Without this deed, a developer could be trespassing and leave both parties exposed to disputes or legal claims.

Recent Example: Protecting Owners Through Negotiation

UpscalePM recently assisted a strata community where a neighbouring development required ground anchors beneath their property. Understandably, owners were concerned about safety, disruption, and long-term impacts on their building.

We worked closely with their legal team and engineers to negotiate a Licence Access Deed that included:

• A fair licence fee, reflecting the value of access.
• Full coverage of all professional fees—so owners weren’t out of pocket for their solicitor, strata manager, or engineer.
• Strict conditions on anchor installation, monitoring, and removal.
• Clear insurance and indemnity protections in case of damage.

The result? Owners were fully protected and financially compensated, while the developer avoided disputes and kept their project on track.

Why These Agreements Matter for Owners

For strata and individual landowners, it’s tempting to think of a Licence Access Deed as “just paperwork.” In reality, these agreements can save owners tens of thousands of dollars and prevent future headaches.

Here’s why they matter:

1. Preserving redevelopment rights – Without limits, anchors could restrict what owners can do if they redevelop their own property.
2. Financial fairness – Neighbours should be compensated for giving up temporary rights to their land.
3. Cost recovery – Developers should pay all professional fees, not owners.
4. Risk management – Proper insurance and indemnities protect against cracks, settlement, or other structural impacts.

Tips for Negotiating Licence Access Deeds

From our experience, a few “pro tips” stand out when dealing with Licence Access Deeds:

• Negotiate both the licence fee and costs: It’s not just about the headline fee. Ensuring the developer covers all professional expenses (lawyers, strata managers, engineers) is equally important.
• Engage technical advisors: An engineer should review anchor layouts and confirm there are no long-term risks to your property.
• Set clear expiry conditions: Anchors should be removed or de-stressed by an agreed date.
• Insist on insurance evidence: Make sure the developer provides certificates of currency for public liability and works insurance.

Handled well, these agreements strike a balance—allowing important projects to proceed while protecting the rights and financial interests of neighbours.

The Role of Project Managers

At UpscalePM, we act as client-side project managers, bridging the gap between construction teams and property stakeholders. When it comes to ground anchors and Licence Access Deeds, our role often includes:

• Identifying anchor risks early in a project.
• Coordinating between solicitors, strata managers, and engineers.
• Managing communications with developers to keep negotiations professional.
• Ensuring agreements are executed properly and safeguards enforced.

By managing both the technical and human side of these negotiations, we reduce risk, protect owners, and enable smoother project delivery.

Conclusion

Ground anchors may be hidden underground, but their impacts are anything but invisible. They raise complex legal, financial, and engineering issues that can’t be ignored. Licence Access Deeds provide the framework for resolving these challenges, ensuring developers can proceed while neighbours are protected and fairly compensated.

If you’re a strata community or landowner approached by a developer about installing ground anchors, don’t sign anything without advice. UpscalePM can help you navigate the process, assemble the right professional team, and secure an agreement that protects your interests—today and in the future.