This study is to investigate the damage assessment of adjacent structures due to excavation in urban environment. Model tests were carried out for 2 story masonry building and frame structures in various shapes and locations. The damage level of adjacent structures were very differently estimated in accordance with the shape ratio (L/h) of structures, construction stages, and various locations. Therefore the most weak part (bay) of structure must be heavily instrumented and monitored in more details at early stage of constructions. The progressive crack development mechanism at various construction stages was revealed through model tests and crack size indicated more conservative side of damage level on the damage level graph.