World Bank Report 2015 | UK v Ireland the real cost of “Dealing with construction permits”
by Bregs Blog admin team
By BRegs Blog Admin. Team on 1st November 2014
We noted in a previous post that the biggest drag on Ireland’s overall World Bank 2015 ranking for ‘Doing Business’ is our building regulatory system: “Dealing with construction permits”. This is clearly demonstrated in the graph above.
Although Ireland’s overall ranking has improved to 13th out of 189 countries*, our position for “Dealing with construction permits” in the report goes down from 117th to 128th – a drop of 11 places in one year. In this sector the UK is placed 17th this year, well over 100 places ahead of Ireland on these construction indicators.
To compare and assess countries the World Bank looks at a typical 1,300 sq.m. production/warehouse building valued at €1.46 m, and provides a detailed summary of the procedures, time needed and statutory fees to build a warehouse in each of the 189 countries.
In the UK there are 12 procedures to get all statutory permissions and this will take 150 days. The cost is 1.2% or £15,039 (€19,035) including 100% independent inspections for building control (approved inspector model). See detailed data for UK here (click on title):
By contrast, in Ireland the cost of statutory fees is a whopping €138,379. We have 38 procedures that take a minimum of 208 days (if various tasks completed in parallel). These costs exclude our privatised self-certification system of building control. S.I.9 costs will include additional certifier costs, design, assigned and ancillary certification costs, defensive specifications and delays due to inadequate Local Authority resources and staffing. This could add an additional 7% to the costs tabled in the World Bank report, an extra €102,200 for this building. See detailed data for Ireland here (click on title):
Construction industry commentators have been calling for an immediate review of S.I.9. Do we really want to see our ranking in this section slide further over the next 12 months due to the delays and costs associated with the legacy S.I.9 problems inherited from former Minister for the Environment, Phil Hogan?
*World Bank Rankings for 2014 have been adjusted for change in methodology.
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