Ciara Gyves

Government Prioritises Apartment and Duplex Defects Remediation Bill 2024

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Duplex Defects

Apartment and Duplex Defects Remediation Bill 2024

The Irish government has approved the priority drafting of the Apartment and Duplex Defects Remediation Bill 2024, which addresses fire safety, structural, and water ingress issues in buildings constructed between 1991 and 2013. Under the new legislation, 100% of eligible remediation costs will be covered.

This remediation scheme, estimated at over €2 billion, aims to protect apartment and duplex owners affected by these construction defects. The Housing Agency will oversee the process, ensuring Owners’ Management Companies (OMCs) receive the funding necessary to carry out these critical repairs.

Key Facts About the Remediation Scheme:

  • The defects covered include fire safety, structural issues, and water ingress.
  • Apartments and duplexes built between 1991 and 2013 are eligible.
  • Over €2 billion will be allocated to cover 100% of eligible remediation costs.
  • The Housing Agency will manage the funding process for OMCs.

Minister Darragh O’Brien emphasised the importance of moving swiftly to protect homeowners and said the bill is a significant step forward. In the interim, the Emergency Fire Safety Scheme remains open, providing temporary support while full legislation is finalised.

According to a government study, nearly 80% of apartment buildings constructed between 1991 and 2013 may be affected by these defects, affecting up to 100,000 homes.

The Apartment Owners Network, Construction Defects Alliance, and the Not Our Fault Campaign have played a crucial role in shaping this legislation, ensuring that homeowners’ concerns are addressed.

For more information on the bill and its progress, visit the Department of Housing, Local Government, and Heritage here and stay updated through AOCA’s news here.

Leon Clarke

Latent Defects Insurance

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Latent Defect

Latent Defects are hidden errors or faults in construction not immediately apparent. Latent Defects Insurance (LDI) protects against such defects up to 10 years after completion, bridging gaps in traditional construction insurance. AOCA advises clients to consider LDI for long-term stability. CIF guidelines provide more insight.

When it comes to construction and engineering projects, risks and complexities abound. Among the myriad considerations for such ventures, Latent Defects Insurance (LDI) is an essential, yet frequently overlooked aspect that can significantly impact the long-term success of a project. At AOCA, we fully understand these nuances and the vital role that LDI plays in protecting stakeholders from unseen defects and potential issues that might emerge post-construction.

A Closer Look at Latent Defects Insurance (LDI)

Latent Defects Insurance, also known as structural insurance or inherent defects insurance, is a form of specialist coverage designed to protect against latent defects in new buildings or refurbishments for an extended period, typically up to 10 years after construction completion.

In the world of construction, latent defects refer to hidden errors or faults originating in the design, materials, or workmanship, which are not immediately apparent or discoverable upon project completion. However, such defects may lead to substantial issues in the long run, including structural failure or water ingress. These unforeseen challenges often require costly remedial work, creating financial burdens for owners.

The Necessity of Latent Defects Insurance in Construction

The value of LDI lies in its ability to bridge the gap where traditional construction insurances might fall short, offering no coverage for latent defects once the construction phase has ended. As a result, LDI becomes an invaluable tool for building owners, developers, funders, and tenants. It provides them with a safety net, offering financial protection against the potentially high costs of rectifying latent defects.

LDI stands out from standard liability-based insurance policies as it doesn’t necessitate proof of negligence for a successful claim. This distinction makes the claim process typically quicker and less fraught with conflict, offering peace of mind to all involved parties.

AOCA’s Role in Promoting Quality and Risk Mitigation in Construction

At AOCA, our primary focus lies in assisting our clients in reducing risks by ensuring meticulous design and careful material specification. Despite these efforts, we are cognizant that latent defects can occur, hence we always advise our clients to consider the protection offered by Latent Defects Insurance. By doing so, we strive to deliver not just excellent service, but also meaningful guidance that ensures the long-term stability and success of our clients’ projects.

For more detailed understanding, you can refer to guidelines provided by the CIF (Construction Industry Federation).