Written answers

Tuesday, 8 November 2022

Department of Enterprise, Trade and Employment

Consumer Protection

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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83. To ask the Minister for Enterprise, Trade and Employment the rights and recourse opportunities available to consumers who have been affected by substandard building or contractor works, or who have paid in advance for building works which have been left incomplete; and if he will make a statement on the matter. [54626/22]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Policy responsibility for building works rests with the Minister for Housing, Local Government and Heritage. I understand from his Department that under the Building Control Acts 1990 to 2014, primary responsibility for compliance of works with the requirements of the Building Regulations rests with the owners, designers and builders of buildings. Enforcement of the Building Regulations is a matter for the 31 local building control authorities, who have extensive powers of inspection and enforcement under the Acts and who are independent in the use of their statutory powers.

The Department of Housing, Local Government and Heritage implements a range of building control reforms which focus on ensuring strong and effective regulation in the building control system and the construction industry and on improving compliance with Building Regulations. This includes:

- implementation of the Building Control (Amendment) Regulations 2014 (S.I. No. 9 of 2014).

- These Regulations empower competence and professionalism in construction projects and establish a chain of responsibility that begins with the owner. With certain limited exceptions, the owner must assign competent persons to design, build, inspect and certify the building works who, in turn, must account for their role through the lodgement of compliance documentation, inspection plans and statutory certificates. The roles and responsibilities of owners, designers, builders, assigned certifiers, etc. during building works are set out in the Code of Practice for Inspecting and Certifying Buildings and Works. The Code of Practice also provides guidance on use of proper materials and the need to check supporting documentation under the Construction Products Regulation and additional national guidance produced by NSAI. Now, where issues arise whether pre, during or post construction, it is clear who has held the designated roles and who is responsible for addressing the issues. This facilitates and simplifies the inspection, implementation and enforcement role of Building Control Authority.

- The enactment in July 2022 of the Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022.

- This Act develops and promotes a culture of competence, good practice and compliance with the Building Regulations in the construction sector. The Act will put the Construction Industry Register Ireland on a statutory footing and aims to benefit consumers by giving those who engage a registered builder the assurance that they are dealing with a competent and compliant operator.

- Remediation of Dwellings Damaged by the Use of Defective Concrete Blocks Act 2022

- Regulations to commence and prescribe for all matters within the Remediation of Dwellings Damaged by the Use of Defective Concrete Blocks Act 2022 is progressing. Local authorities have responsibility for the administration of the current Grant Scheme and will also have responsibility for the Enhanced Defective Concrete Blocks Grant scheme upon commencement. The Department of Housing, Local Government and Heritage recently published a comprehensive and updated “Your Questions Answered” document on its website to ensure homeowners have the most up to date information available to them.

- Pyrite Resolution Act 2013

The Pyrite Resolution Act 2013 provides the statutory framework for the establishment of the Pyrite Resolution Board and for the making of a pyrite remediation scheme to be implemented by the Board with support from the Housing Agency. The provisions of the Act apply only to dwellings affected by significant damage attributable to pyritic heave consequent on the presence of reactive pyrite in the subfloor hardcore material and not to damage arising in any other circumstance, e.g. such as pyrite in concrete blocks. The Pyrite Remediation Scheme is a scheme of “last resort” for affected homeowners who have no other practical option to obtain redress and is limited in its application and scope. The full conditions for eligibility under the scheme are set out in the scheme which is available on the Board’s website.

In relation to my own Department, the current consumer rights legislation in relation to services is the Sale of Goods and Supply of Services Act 1980. Under the 1980 Act?when a service contract is entered into by a consumer, such as for building works, it must be carried out with due diligence and appropriate skills. Any material used must be sound and fit for purpose and any goods supplied must be of acceptable quality. The supplier of the service is responsible for providing redress. The consumer is entitled to seek either a full or partial refund or to have any work rectified and any repairs carried out must be permanent.

In addition, when a consumer enters into a contract for construction work on their home, there is an onus on the consumer to review all of the terms and conditions attached to the service.?Terms and conditions are set at the company's own discretion and may include conditions around when the works will be completed. Once the service is agreed, the terms and conditions are also agreed and both the consumer and the trader are bound by them.

Where a breach of contract occurs, the consumer may renegotiate the terms of the agreement with the trader or exit the contract without penalty and seek a refund of any monies owed. A written complaint can be made to the trader if the matter remains unresolved. As a final option recourse can be made to the Small Claims Process which can accept cases up to the value of €2,000. Any amount above this limit would require seeking remedies through the Courts and consumers may wish to seek independent legal advice in this regard.

The new Consumer Rights Bill 2022 that was recently passed by both Houses of the Oireachtas, once enacted, will provide for rights and remedies for consumers where a service contract is concluded between a trader and a consumer. These will be of a general nature that will apply to all service contracts, with some exceptions. Under the new legislation, a trader will be required to supply the service to the consumer as set out in the service contract.

Service is defined in the Bill as any service or facility, including a service or facility for the construction, maintenance or repair of buildings. A service contract is also defined as a contract under which a trader supplies or undertakes to supply a service to a consumer and the consumer pays or undertakes to pay the price for the service.

Once a service contract is concluded, the service must meet wide ranging subjective and objective requirements to be in conformity with the service contract, including being reasonably fit for purpose; being of a nature and quality that can reasonably be expected to achieve the agreed result; the trader must have the necessary skill to supply the service; and any materials used in the supply of the service must be sound.

The remedies available to the consumer for a service which is not in conformity with the service contract includes the right to terminate the contract; the right to have the service brought into conformity with the contract free of charge, within a reasonable time and without significant inconvenience; and the right to a proportionate reduction in the price. The latter applies in a number of specific instances, including where a service under a service contract is unsafe or any goods produced by, or resulting from, the service or any materials used in the service are unsafe. The consumer also has a right to withhold payment for any outstanding part of the price payable under the contract until the trader fulfils his obligations under it.

Remedies are available to the consumer under a service contract where it also provides for the sale of goods or the supply of digital content or a digital service.

Other remedies are also available to the consumer via the Consumer Rights Bill such as claiming damages; seeking to recover money paid to the trader for a non-complying service and recovering reasonable costs incurred from the trader for having the non-conforming service contract remedied elsewhere.

The Competition and Consumer Protection Commission (CCPC), the body responsible for enforcing consumer law in Ireland, will have extra enforcement powers. Where traders engage in misleading and aggressive commercial practices, like posting fake reviews or where they do not provide the remedies or reimbursement that consumers are entitled to, the CCPC can take action such as issuing compliance notices or applying to the Circuit Court or High Court for a declaration or injunction.

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