Self builders escalate to Law Society: BC(A)R SI.9

by Bregs Blog admin team

irishlawsoc

The representative organisation for self builders (IAOSB) have written to the  Attorney General concerning the status of self-building in Ireland following the introduction of Building Control (Amendment) Regulation (SI.9 of 2014) on 1st March 2014. This letter was sent after contradictory and conflicting guidance was issued by Minister Phil Hogan T.D. and the Department of the Environment, Community and Local Government (DECLG). See letter here.

Following on from further recent legal advice the IAOSB have sent the following letter to the Law Society. This letter concerns recent Law Society guidance issued to their members. In this guidance note they recommend profesionals not to undertake certifier roles for self-builds. This would suggest that any self-builder, currently commencing or about to commence a project (after 1st March 2014), may run into financing and convayancing difficulties notwithstanding Ministerial and DECLG statements to the contrary.

Here is a link to the IAOSB letter to the Law Society – Click here.

Extract with letter off IAOSB website (with permission of IAOSB):

___________________

Letter to Mr John P Shaw, President of Law Society of Ireland

regarding Building Control (Amendment) Regulation S.I.9 of 2014

Dear Mr Shaw,

With the introduction on 1 March last of the Building Control (Amendment) regulations 2014, (S.I.9 of 2014) self-builders have been received confusing and contradictory advice from the Minister for the Environment, Community and Local Government and from his Department as to whether it is possible for an owner, someone without prior contracting experience, to manage and build their own home under the new regulations. Our assessment of the situation under the regulations is as follows.

1) The owner may be able to nominate themselves as the “builder” (as per DECLG advice attached). However, also per the DECLG advice attached, only a principal or owner of a building firm, a “competent builder”, may sign the completion certificate. A “competent builder” is defined in the attached code of practice.

2) Provided a registered professional assumes the duties of assigned certifier (which is contrary to LSI advice), stage payments will be made (usually) on foot of recommendations for payment as per a normal building contract. This will remain unaffected unless the contractor or the professional certifier retires from the project.

3) At completion stage, the final payment usually is due on practical completion. This may remain the case under the S.I. 9 regime. However, no revised contract has been issued to incorporate the necessary S.I.9 local authority completion/validation process. This stage is unclear.

4) Completion documentation ideally should be lodged 3 weeks before practical completion, to ensure validation and practical completion occur at same time.

5) However under S.I.9, a building may not be occupied or used until the local authority has received and also validated the Certificate of Completion. It is likely that such validation will become a condition of financial institutions to release final payment, because occupation and “fit-for-purpose” now are governed by two separate sets of documentation. It is quite possible that under the building contract the build may be practically complete, i.e. “fit for purpose”, while at the same time an owner may not be able to occupy the building until the local authority validation procedure is completed. Under S.I.9 time is “at large” if completion documentation is deemed by a local authority to be invalid. This is a source of concern due to timing, delays and possible claims.

6) Under S.I.9, the builder’s completion certificate “must be signed by a principal or owner of a building company only”. The DECLG have issued conflicting guidance to local authorities and IAOSB on this. However, your Society has indicated that there may be difficulties for certifiers in compliance with this, and you recommend certifiers not to undertake any self-build projects (see your attached guidance note, and DECLG correspondence).

7) Notwithstanding this, no local authority code of practice has been issued as a definitive guide to implementation by DECLG to building control officials in local authorities. Due to this there may be differing interpretations by building control officials of S.I.9; e.g., commencement and completion documentation’s, certificates, materials records, part D compliance etc.

8) The code of practice issued to professionals does not mention anywhere an owner undertaking the role of builder in a project- it stipulates a “competent builder”. The definition of a competent builder is a person who has at least 3 years similar building experience. This is at odds with DECLG advice to date. This is referenced by law society guidance to professionals not to certify self-builds.

Conclusion

Due to the following:

  • Contradictory guidance issued by DECLG to date; that owners may nominate themselves as builders on commencement but that a “competent builder” must sign the completion certificate;
  • The uncertainty around “competent builder” where the owner / self-builder does not have at least 3 years similar building experience;
  • The law society guidance recommending professionals not to certify self-builds;
  • The lack of a local authority code of practice giving definitive guidance on status of self-build;
  • The lack of appropriate guidance from the Attorney General on the matter;
  • The lack of building contracts that incorporate new roles in S.I.9

One could conclude that any self-builder, nominating themselves as builder for their own house, is likely to experience completion delays and legal/ conveyance issues.

Therefore, we at Irish Association of Self Builders, on behalf of our members about to commence self-builds request clarification on conveyance issues from the Law Society as a matter of urgency.

Look forward to hearing from you soon and hope that you include your guidance in the gazette of law society.

Kind regards,

 

Shane McCloud

Irish Association of Self Builders

www.iaosb.com

 

We attach the following documentation for your information on the matter;

Code of practice

S.I.9 and Builder’s Completion Certificate

IAOSB letter to attorney general

localgov.ie guidance

Correspondence to and from DECLG (Martin Vaughan)

Law society advice on S.I.9 (March 2014)

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