Damage to neighbor's house or street - who is liable?

That's exactly how I'll do it, I really don't have any other choice anyway. I'm still optimistic because 1.) not everything can possibly go wrong for us and 2.) because the logic in my head doesn't allow me to believe that I have to redo a probably 50-year-old and in need of repair street, which clearly has needed it for a while... I'm just hoping...