The salvaged hammer is the current item needed to remove buildings. But if you don't have this item, you can't remove buildings without a lot of time and a lot of resources, which can be a pain if you want to do or build something but the building that you can't remove is blocking you.
The salvaged hammer can be hard to get, as it is solely based off RNG. I suggest changing this to an item that is easily accessible, and craftable whenever you need it. A torch would be good for this reason, since it is easily crafted, and you spawn with it. If not a torch, then please change this to another easily accessible item.