The Society of Chartered Surveyors Ireland Opening Statement to Joint Oireachtas Committee on Housing, Local Government & Heritage on Remediation of Dwellings damaged by the Use of Defective Concrete Blocks Bill
13th July 2023
Introduction
The Society of Chartered Surveyors Ireland (SCSI) is the leading professional body for chartered surveying professionals working in the property, construction and land sectors across Ireland, as well as operating the Statutory Register for the protected title of Quantity Surveyor and Building Surveyor. We undertake research on a wide range of economic, industry and practice-related issues in the public interest to produce regular reports, including those relating to construction costs. In recognition of this construction cost expertise and the independence of the SCSI, we were requested by the Minister for Housing, Local Government & Heritage, Darragh O’Brien TD, to provide construction cost information for the Government’s Defective Concrete Blocks Grant Scheme in late 2021.
The Terms of Reference were agreed between the Department of Housing, Local Government & Heritage and the SCSI on the 7th February 2022, which set out the parameters within which the SCSI would produce an independent, standalone construction cost report for the demolition and rebuilding of homes affected by defective concrete blocks (option 1), and to propose a cost methodology for the partial remediation (options 2-5). Of particular note, the report is based on the parameters of the Defective Concrete Blocks Grant Scheme, as announced on 30th November 2021. The SCSI had no role in setting the parameters of the grant scheme (e.g., which building regulations apply, exclusion of foundations, etc.) and no role in the setting of the grant amount.
The SCSI Report on Construction Costs for the Defective Concrete Block Scheme was published on 3rd March 2022 and was welcomed by all stakeholders, including Minister O’Brien and the MICA Action Group. The SCSI undertook this extensive work pro bono in the public interest and was supported by a significant number of our volunteer Chartered Surveyor members. The report is appended to this submission.
Updated Average Rebuild Costs
The terms of reference stipulate that SCSI will review the costs for the North West annually. A request was made by the Department of Housing to SCSI to review the average rebuilding rates for the house types included within the Terms of Reference for the Society of Chartered Surveyors Ireland (SCSI) Report on Construction Costs for the Defective Concrete Block Scheme for the North West, and the updated costs were submitted to the department on 28th February 2023 and posted on the SCSI website on 2 March 2023. The average rebuilding rates are contained in the table below, which include demolition costs (excluding foundations), and are based on the pricing brief as shown within ‘Table 2: SCSI Construction Cost Pricing Brief’ of the SCSI Report on Construction Costs for the Defective Concrete Block Scheme February 2022. The average rates are informed by Chartered Quantity Surveyors operating within the North West region. The methodology and analysis are consistent with that of our Report on Construction Costs for the Defective Concrete Block Scheme February 2022. The table is attached to the end of this statement.
It must be noted that due to the multiplicity of house designs, sizes, choice of building materials, site typology/ground conditions, building finish quality and specification, to name but a few, there can be significant variances within construction costs. Construction costs will vary based on geographic location, availability of labour and materials and the competitive tender process. Therefore, the SCSI average rebuilding rates are based upon approximate house sizes specified within the Terms of Reference using non-complex house design plans sourced from Chartered Surveyors and built to basic specifications.
As stated in the Terms of Reference, the Department informed the SCSI that the Building Regulations to be applied in the context of specification are from pre-2008 on the basis that the scheme allows for ‘like-for-like’ replacement and does not allow for ‘betterment’. The average rebuild costs are produced within the parameters of the scheme; therefore, we have provided construction costs for rebuilding homes at February 2023 material and labour rates, but at pre-2008 Building Regulations. While the parameters of the scheme are outside the scope of the SCSI’s cost report for the defective concrete block scheme, it remains the position of the SCSI that best practice is to build to current regulations or to exceed current regulations.
The average rebuild costs in the table below include the costs for:
- Demolition (excluding foundations) and reconstruction costs;
- Concrete path around the house;
- Disconnection and reconnection of utilities;
- Making good to driveway and garden;
- Professional fees; and
- VAT at 13.5% on building costs and 23% on professional fees.
Costs do NOT include:
- New foundations;
- A-rated/NZEB homes – see note above re relevant Building Regulations;
- Contents such as carpets, curtains, loose furniture, domestic appliances, etc; and
- Outbuildings, garages, boundary walls, driveways (except as relating to item 4 above), septic tanks,
Average Rebuild Costs Mid West
The Department of Housing, Local Government and Heritage requested that the SCSI produce average rebuild costs for the 8 house types for the Mid West. While this exercise was outside the scope of the terms of reference, in the public interest the SCSI agreed to undertake the cost exercise. The exact same methodology was used as for the North West, utilising the expertise of Chartered Quantity Surveyors based in the Mid West, and the average rebuild rates were submitted to the Department on the 18th April 2023 and posted on the SCSI website on 21st April 2023. The table is attached to the end of this statement.
Conclusion
The SCSI welcomes the opportunity to contribute to the resolution of this critical issue and undertakes this extensive work in good faith in the public interest. We wish the committee well in your continued scrutiny of the defective concrete blocks scheme.
Thank you.