Generally speaking, trees and construction do not go well together. A wide variety of damages can occur to a tree, and trees can be damaging to structures as well.
Damage that can happen to trees: Damage that can happen to property:
Broken branches/limbs from machinery Heaving/cracking of sidewalk/curb/driveway/foundations
Scraping bark from trunks Clogging of sewer/storm-water pipes
Compaction of soil due to heavy equipment Scraping of paint/roof shingles on homes
Root loss due to excavation
Proper tree selection and placement is crucial in minimizing these situations!
Most damage occurs when construction of some type takes place around existing trees. At the same time, proper planning and foresight can minimize or eliminate the effects of construction altogether. Prior to home construction or remodeling projects it would be wise to plan for potential issues. Many people buy wooded lots for homes areas and find that in 5-7 years after construction is over all of their trees have suffered considerable die-back or completely died. The same can happen in neighborhoods with well established trees.
The following is a reproduction of a TreeCity USA Bulletin on Building with Trees