HomeBond | the solution to SI.9?

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The following opinion piece was received from a registered professional on 26th January 2015.

There has been a lot of comment recently on the new building regulations adding hugely to the costs of building a home. Some suggest SI.9 has added over 20% extra to the cost of house building. Certainly, when the cost of using a main contractor is factored in for a self-builder the costs are indeed considerable. Others have suggested that we should embrace additional cost if the system will deliver better building. Only time will tell whether the current reinforced system of self-certification will yield consumer benefit. However, a low-cost certification system currently being developed for the speculative sector may have applications to the self-build and one-off houses. This is currently 46% of housing output according to recent DECLG figures. Any impediment to self-building needs an urgent solution.

HomeBond Pilot Certification scheme

There has been some interest in the pilot scheme announced recently by HomeBond to offer a ‘one-stop-shop’ full building certification service. The main points of the scheme are as follows:

Homebond Certification + LDI scheme:

  1. Includes foundation design at cost €250
  2. Includes Assigned Certification costs
  3. Includes Structural Defects Insurance*

This is currently being piloted on small multi-unit developments. Certificates for Building Control sign-off are provided by HomeBond’s own employees. I am not aware of details of their Professional Insurances held at this point so am unable to comment. While some commentators have concentrated on possible exclusions, I do not have details of the scheme and what is covered or excluded at present.

However there are interesting aspects to this scheme.

Many developers of speculative housing are not necessarily competent builders. They buy a site, engage professionals, borrow money and hire sub-contractors, in much the same way as self-builders, but on a larger scale. Developers would suggest that this was a cost driven model, driving down costs for consumers etc.

The HomeBond scheme is of interest to the self-build sector as it provides a low-cost version of privatised Building Control. Indeed some consider this is precisely what former Minister Hogan had in mind when he (and his Department) issued guidance on costs of the new system of between €1000 and €3000 per housing unit.

Some argue that this is a better model to an all-in professional service where the same person provides certification duties as well as architectural, planning, engineering and design services. The HomeBond separate appointment could provide peer review with the added benefit of a defects insurance at a  modest cost.

Could this scheme could provide a solution to SI.9 problems at the moment?

If the HomeBond scheme was adapted to cover once-off houses and had an additional option for design certifier services, this may be a practical solution to some unintended problems for self building and architectural technologists present:

  • Certifier Costs would be reduced: anecdotally representatives for self-builders have reported increased professional costs ranging from €6k- €30k for assigned certifier duties. An extended version of HomeBond would significantly reduce this cost.
  • Certifier availability: current advice from the Law Society to the IAOSB indicates an unwillingness of certifiers – architects in particular – to undertake self-build projects, . Availability of HomeBond for once-off owner constructed houses would significantly improve this situation. Some suggest the restrictive nature of registers of competent persons has had the effect of reducing the pool of available certifiers, and increasing costs.
  • Contractors: if the HomeBond scheme was geared towards inexperienced owner/ builders, owners would not have to use CIF registered (CIRI) builders for projects. This would reduce the bulk of SI.9 additional costs that are currently acting as a deterrent to self-builders.

Of course details of duties, cover, exclusions, professional insurances held by in-house HomeBond certifiers would need to be looked at. It is surprising that all of the mandatory sub-certification such as waste water and energy compliance can be done at this cost. However if pilot schemes are underway on BCMS validated projects at present, one can only assume all these details have been worked out to the satisfaction of the current Minister, Department and the BCMS.

An added bonus for ‘one-stop-shop’ design and assigned certification being provided separately by HomeBond would be that suitably qualified professionals currently excluded by stakeholder registers, such as Architectural Technologists, could still operate in all other areas of procurement as before, minimising impacts of SI.9 to their liveleihoods. A HomeBond solution (or something similar) could solve a number of problems.

One must assume if this scheme is appropriate for owner-developers of multiple units, it should also be suitable for owner/developers of once-off houses.

* Note: this may be more limited than Latent Defects Insurance. The Homebond policy is taken out by builder and may offer limited benefits to purchasers, see more from Beauchamp Solicitors here:.

Other posts of interest:

Homebond | Assigned Certifier + defects liability policy for €2,000?

The Latest Homebond House Building Manual: A Critique | Joseph Little Architects

Why did Phil Hogan think SI.9 would cost less than €3000 ?

Quick history of pyrite- press articles

What is Latent Defects Insurance and how much does it cost?

SI.9 costs for a typical house 

Pyrite: the spiraling cost of no Local Authority Inspections 

Inadequate Regulatory Impact Assessment for S.I.9- Look Back 2

SI9 Schedule of duties for Certifiers

1 thought on “HomeBond | the solution to SI.9?

  1. Andrew Alexander MRIAI

    This reads like a screenplay for Alien 3! To ensure our state continues sidestepping its role in undertaking proper, balanced and transparent inspection of construction sites (which is where buildings are actually built – not in the vaults of the BCMS) the beast and its spawning highly dubious offspring!

    I note it is listed under other posts of interest however for anyone new to this forum, Joseph Little’s commentary on The Latest HomeBond House Building Manual: A Critique is recommended companion reading to the above and very interesting Beauchamp Solicitors paper.

    If this is the road we are going down the future of the BRegs blog as a consumer watchdog is secure for many years to come.

    Reply

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