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Our land has been cut into.. Standard?

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As photo shows our lot is vacant although next door has cut into our land.
What guarantee this will be the same level when earth is replaced and will the ground now be more unstable? Is this standard practice.
Any thoughts would be much appreciated
Its more normal, and proper, to keep the excavation within the limits of the block rather than cross the boundary.

The main issue is that even if the ground is replaced your builders will need to excavated down to the level we see in the photo otherwise they would be building the house on uncontrolled fill (see Types of Fill)
It looks like the cut is very recent. What is their setback to the boundary?
If neighbour is doing a retaining wall on the boundary it is pretty standard to take the excavation back a little bit further than where the wall will be so it can be backfilled with drainage gravel, etc. What is your setback from that boundary - looks like they are not that far over so you shouldn't be building on top of that anyway?
I agree with tlcbc. They have to cut it that way to slope the water away from the house, and part of the remediation will be to build a small retaining wall to bench the 500mm higher earth on your side.
But you now may have to deepen your footings below the retaining wall level on that side as you will have a angle of repose
issue but check with your engineer first.
Thanks so much for everyones replies ill have a photo up this week in relation to the response from the builder and work completed. Speaking with a builder friend been advised there should be no issues and it will be only until the engineers check over when we start building
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