€10m Pyrite compensation pack agreed – Will anything change under the new regulations?

by bregs blog admin team

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An initial €10 million of funding has been announced by the Government to repair homes damaged by pyrite. (Journal.ie 16/10/13). Pyrite damaged homes are being rectified at taxpayer expense because there’s no ready system of redress for homeowners.

Although the stated objectives of the new regulations is to provide “traceability and accountability at all stages of the building process” (Minister Hogan 04/04/13), the consumer will be no-better off under the new regulations. A modified system of self-certification will continue and where the assigned certifier cannot be found, or the action for negligence fails , or the certifier no-longer has the means or the insurance to rectify the problem; it may be up to the taxpayer to once again step in and provide redress.

The best time to identify defects and remedy problems is during the construction, through a system of independent inspections. In 2012 The Pyrite Panel reported on the reasons for the failure to prevent defective material (containing pyrites) and recommended that “the system of independent inspections, carried out by the building control officers, should be strengthened to complement the mandatory certification process for buildings”

In the event of ‘latent’ defects (defects that are not evident or have not developed at the time that the building is complete) a mandatory system of Latent Defects Insurance would give the building owner immediate redress for pyrites and other hidden problems without having to go to court. From the Pyrite report: “More generally, from a public policy perspective, systems should be put in place that would provide protection for the public, in the case of urgent and serious problems (such as occurred in relation to pyrite in dwellings), without having to resort to prohibitively expensive, time-consuming and uncertain legal actions having to be taken by individuals.”(The Pyrite Panel Report 2012)

Commissioned by the government, The Pyrite Report Panel carried out a thorough investigation into the problem of pyrite in homes and completed its report in 2012. The report was endorsed by the government and published. If SI80 (the proposed amendment to the regulation) is a response to the problems of Pyrite in homes, it is remarkable that one of this report’s key recommendations: independent inspections by local authorities, is not an integral part of the proposed changes.

Download the 2012 Pyrite Report Here

What is Pyrite? 

Surveyors welcome €10m Pyrite Remediation Scheme Pledge but say the problem is not over. See SCSI press release here

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