Ms Shirley Coulter:

I am grateful for the invitation to participate at today's meeting. The 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 and Heritage, Deputy Darragh O’Brien, to provide construction cost information for the Government’s defective concrete blocks grant scheme in late 2021. The terms of reference were agreed with the Department on 7 February 2022, which set out the parameters within which the SCSI would produce an independent, stand-alone construction cost report for the demolition and rebuilding of homes affected by defective concrete blocks, which was option 1, and to propose a cost methodology for the partial remediation, which were options 2 to 5. It is of particular note that the report is based on the parameters of the defective concrete blocks grant scheme as announced on 30 November 2021. The SCSI had and has no role in setting the parameters of the grant scheme, for example, 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 3 March 2022 and was welcomed by all stakeholders. The SCSI undertook this extensive work pro bonoin the public interest and was supported by a significant number of our volunteer chartered surveyor members. The report is appended to this submission.

I will now deal with the updated average rebuild costs. The terms of reference stipulate that SCSI will review the costs for the north west annually. The Department of Housing, Local Government and Heritage asked the SCSI to review the average rebuilding rates for the house types included within the terms of reference for the report on construction costs for the north west. The updated costs were submitted to the Department on 28 February 2023 and posted on the SCSI website on 2 March 2023. The average rebuilding rates are contained in the table accompanying this submission. They include demolition costs, excluding foundations, and are based on the pricing brief as shown within table 2 of the original report in 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 from February 2022.

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 rates 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 include the costs for: demolition, excluding foundations, and reconstruction; 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 nearly zero energy building, NZEB, homes which is relevant to building regulations; and contents such as carpets, curtains, loose furniture and domestic appliances; and outbuildings, garages, boundary walls, driveways, except as relating to making good to driveway and garden, septic tanks, etc.

The Department of Housing, Local Government and Heritage requested that the SCSI produce average rebuild costs for the eight house types for the mid-west region. While this exercise was outside the scope of the terms of reference, in the public interest the SCSI agreed to undertake this additional 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 18 April 2023 and posted on the SCSI website on 21 April 2023. The table is attached to the end of this statement.

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 its continued scrutiny of the defective concrete blocks scheme.