Surveyors Journal Autumn 2020

SURVEYORS JOURNAL V O LU M E 10 I S S U E 3 A U T U M N 2020

THE FUTURE OF RESIDENTIAL SALES

ALSO IN THIS ISSUE INTERVIEW: MICHEÁL MAHON MATERIAL UNCERTAINTY COVID AND PROPERTY

NEWS PRESIDENT’S MESSAGE

FEATURE

EDITORIAL

INTERVIEW THE LAST WORD

SURVEYOR PROFILE

n President’s message

4

n Editorial

5

n Business news

6

n Building for the future

9

n Guiding the Society

12

n Greening our buildings

16

n Uncertain times

18

n Planning perils – part II

20

n Changing space

22

n The future of residential sales

24

n Location intelligence

26

n Much obliged

28

n Society news

30

n Surveyor profile

33

n The last word

34

INTERVIEW

Society of Chartered Surveyors Ireland, 38 Merrion Square, Dublin 2.

Tel: Email: Web:

CONTENTS

01-644 5500 info@scsi.ie www.scsi.ie

www.scsi.ie Views expressed by contributors or correspondents are not necessarily those of the Society of Chartered Surveyors Ireland or the publisher and neither the Society of Chartered Surveyors Ireland nor the publisher accept any responsibility for them.

EDITORIAL BOARD

PUBLISHERS

Tom Dunne Chairman John Costello Costello Commercial Tom Cullen Think Media Kieran Garry SCSI Brian Gilson Lisney Ann-Marie Hardiman Think Media Frank Harrington Smith Harrington Patrick King SCSI Edward McAuley SCSI Paul Mooney Benchmark Property Paul O'Grady Think Media Rowena Quinn Hunters Andrew Ramsey Module Surveying and Design Ltd Sarah Sherlock Murphy Surveys Claire Solon Greystar Ireland John Vaudin Round Hill Capital

Published on behalf of the Society of Chartered Surveyors Ireland by Think Media

Editorial:

Design:

Advertising:

Ann-Marie Hardiman Paul O’Grady Colm Quinn Tony Byrne Tom Cullen Niamh Short Paul O’Grady

LETTERS, COMMENTS AND ARTICLES WELCOME All submissions will be considered by the Editorial Board: editor@scsi.ie

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

3

TACKLING THE BIG TICKET ISSUES TÁ AN ÁTHAS ORM AN PHOSTA SEO A GLACADH AR SON CONTAE LOCH GARMAN!

I

always hoped someday I would get to accept national silverware for Wexford and the acceptance of the role of President of this Society is as big an honour, or more, as winning a national hurling final! It is a role and responsibility I will not take lightly and I thank the members for this honour. I have been involved in the SCSI

for 15 years in various capacities including chair of the South East region, QS Committee member and chair, board member and a member of various working groups. My experience in property and construction and the SCSI has probably formed my view in relation to some of the ‘big ticket’ items on my presidency list.

Independence: At every opportunity, we should be, and are, stressing the independence of the SCSI. This is a critical message we need to get across. While we as members are aware of it, the general public and policymakers are not.

In every interaction I’ve had with relevant third parties since I became President, I have reiterated this point. I think we are winning this battle but we need to keep reinforcing this message; this is something we all can do as members.

Sustainable industry: I am unapologetic in stating that the country needs a sustainable property and construction industry. This has not, particularly since 2008/2009, been the most palatable message to outline but it is clear that once the industry suffers a severe shock, it takes a long time to get back to the required level of output in terms of provision of critical infrastructure, housing, etc. We must avoid the boom/bust cycles of heretofore.

Housing: If ever there was an issue that the SCSI can contribute hugely to in the interests of broader society it is the current housing crisis. We have made a lot of progress already in the provision of real-time, independent cost data and other commentary. But there’s more to be done, and it is being done. This is the single biggest issue facing the country, aside from Covid-19, and the SCSI must continue to contribute to its solutions.

Volunteerism: Volunteering with the SCSI brings great benefit, not just in terms of making a difference on whatever issue/topic is under review, but also in terms of networking and forming friendships. I encourage anyone interested in getting involved with their professional group, region or even working group, to please do so. You won’t regret it.

We’ve hit the ground running since my election and I look froward to progressing these issues as well as the ongoing business of the SCSI. If any member wishes to reach out to me, please do so – I’d be delighted to hear from you.

PRESIDENT’S MESSAGE

CONTRIBUTION The SCSI is an independent source of advice and information on construction

Micheál Mahon President

4

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

and property.

FUTURE FOCUS

Burn baby burn Acres of land destroyed by wildfires – October 2019 to September 2020

AS WE DEAL WITH THE UNCERTAINTIES OF THE PRESENT, WE MUST ALSO LOOK TO THE FUTURE OF THE PROFESSION AND THE SECTOR.

U

nsurprisingly, there is a lot in this edition of the Surveyors Journal about Covid-19. In their article Claire Solan and Emma Leonard look at changes in the property market as people respond to the effects of the virus.

Of course it is ongoing, and there is great uncertainty about possible ramifications, but it is both interesting and imperative that reflections such as the ones offered here are part of the discussion.

Covid-19 uncertainties require surveyors to provide clients with professional and considered advice, but also to inform clients about the impacts of such advice. In this vein I am sure that the article by Shane O’Beirne about material uncertainty clauses and the need for full transparency in valuation reports will be of great interest to valuers and their clients.

Along with Covid-19, of course, the greatest challenge of our time is to mitigate climate

32.1 million

collapse, which is the subject of a very interesting article in this edition by Finnbar Howell.

Surveyors have a crucial role in this challenge. Finnbar says we need to reduce the fossilfuelled operational energy use of buildings to zero now! He further points out that we also need to start thinking about energy generation in buildings using new technologies.

6.7 million

Clearly it is important at times of crisis for surveyors to keep a focus on this.

There are two interviews in this edition. In one Micheál Mahon, President of the Society, who took over at a very difficult time, sets out his thoughts and speaks about the challenges facing the Society, particularly the need to avoid losing a generation of young surveyors as a result of a downturn in the industry. This is a very important point as the loss of talent during downturns greatly inhibits recovery and future growth. In the second we are introduced to Mark Mulville, the new Head of the School of Surveying and

3.2 million

Construction Management at TU Dublin. Mark is very able and the School is in good hands, something I am sure will be welcomed by the many surveyors who are graduates.

There has been a significant changing of the guard at the University and I wish them all well as they steer the long-established surveying school through the coming turbulent years.

51.6 million

EDITORIAL Tom Dunne Editor

Source: www.statista.com, BBC News, news.mongabay.com,

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

5

MFO ON THE MOVE

NEW FACES AT MODULE

The Module Group has continued its expansion into the commercial property sector, with the appointment of Luke McCarthy and Brian McCarragher to the team.

Both surveyors are graduates of Dundalk Institute of Technology.

Director Andrew Ramsey comments: “We’re delighted with the two appointments to the company. Brian has taken up a role within our project management division, with Luke bolstering our ever-expanding professional services division. Both surveyors have settled in well within

Having outgrown their former offices in Ranelagh Village, MFO has

the Module Group and are looking forward to progressing their

announced a move to larger premises at No. 31 Waterloo Road,

assessment of professional competency within the SCSI”.

Ballsbridge, Dublin 4.

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SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

THE BUILDING CONSULTANCY ABROAD

The Building Consultancy has been appointed as designers and project managers for Dussmann Group’s new headquarters in Germany. The 26,000 sq ft office fit-out in Frankfurt’s seven-storey X-Road office block is scheduled for completion in December 2020. Further international projects completed by the Building Consultancy this year include retail fit-outs in Taipei, Taiwan and Abu Dhabi, UAE.

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SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

BUILDING FOR THE FUTURE MARK MULVILLE TALKS ABOUT TAKING OVER THE SCHOOL OF SURVEYING AND CONSTRUCTION MANAGEMENT AT TU DUBLIN IN THE MIDST OF A LOCKDOWN, HIS PLANS FOR THE SCHOOL, AND WHAT MAKES A GOOD SURVEYOR.

M

ark Mulville took over from

geographic science, quantity surveying and

huge amount of experience and knowledge,

Tom Dunne as Head of the

real estate. Even before Covid, the School was

but Tom and Martin left the School in a really

School of Surveying and

undergoing a major transformation as part of

good place. We’ve also had new appointments

Construction Management at Technological

the transition of DIT Bolton St to TU Dublin.

to the School’s senior leadership such as Dr

University (TU) Dublin in April, so had the

Mark is conscious of the need to retain the

Frank Harrington as Real Estate Discipline

unenviable task of beginning a new role during

School’s identity within the new structures:

Lead and Ruairi Hayden as Construction

lockdown.

“We’re bringing three institutions together.

Management and Geomatics Discipline Lead,

With approximately 1,200 students and 45

A lot of change is going to happen. My role is

so we’ve got a very strong team. I’m really

staff, the School offers a range of programmes

to make sure that the disciplines I represent

looking forward to working with them”.

from level 6 to 10, in construction management,

are reflected, that the importance of them will be front and centre”.

A different kind of change

INTERVIEW

It’s been a time of change among staff too, with

A strong team will be needed in the coming

the retirement of Tom Dunne and Martin

months, as the School, like every other learning

Ann-Marie Hardiman Managing Editor, Think Media

Hanratty, the former Head of Real Estate at the

institution, goes through what Mark calls “the

School, and new appointments too: “We lost a

largest change higher education’s ever faced”.

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

9

The School is moving online as much as possible, and Mark praises the teaching team for how they

Team player

have risen to this massive IT challenge. Social distancing will be implemented when staff and students

Mark came to surveying via what he calls

need to attend in person. There are also particular challenges around the surveying equipment needed

a “meandering route”. He originally studied

by students and staff for the field work that is an essential part of many programmes, and strict hygiene

architectural technology, and worked in the

protocols have been put in place. For Mark, however, ensuring that students are supported is perhaps

architectural industry for a number of

the most important thing of all: “Students come to university not just for the programme, they come

years, before the recession prompted a

for the experience, and we’re conscious that September is going to be a very different experience for

move to the UK. Over time he moved to

them. One of the things we’ve done is that each first-year group will have additional support through

more of a building surveying role, and then

year tutors and remote learning advisors”.

decided to follow a long-cherished ambition

An open door policy has always been central to the School’s ethos: “Students should feel they can go

to move into education, beginning as a

and talk to their lecturer outside of the classroom. That’s been taken away from us, so we’re working

lecturer in the University of Greenwich in

really hard to make sure they know how to contact us, and that we’re available to help them”.

London. On his return to Ireland in 2017,

Many of the School’s programmes also involve work placements. With companies operating new

he took up a role in the then DIT in Bolton

protocols and staff working from home, providing the training and mentoring needed by a student will

St, and became Head of School in April of

be difficult. And as the sector contracts, the work may not be there. Mark points out that the sector has

this year. A Shelbourne fan, he was a

experienced troughs before, most recently in the last recession, and the School has plans in place to

frequent visitor to Tolka Park in pre-Covid

ensure students are facilitated as much as possible: “Most of our students have secured placements.

times, but these days he satisfies his love of

Once they start, there may be cases where placements disappear, because of the industry or because

football by enjoying a kickabout with his

the employer struggles to provide that support. If an employment situation or a placement breaks down,

three-year-old son.

we have a contingency in place around what the student can do to meet our learning outcomes”.

School plans Under normal circumstances, an interview with a new Head of School would begin by asking about their plans for the institution they are now leading, but these are far from normal circumstances. Nevertheless, it’s important to think about the future: “At TU Dublin we have a new strategic plan, which is focused on ‘People, Planet, Partnership’, aligned with the UN Strategic Development Goals. As a school of surveying and construction management, these are areas where we are front and centre in terms of the built environment and its impact on the environment, and on people. In terms of partnership, that is really strong in our engagement with industry, but we also have formal relationships with Purdue University in the US, RMIT in Australia and others around Europe”.

Mark’s plans for the School encompass both the undergraduate and postgraduate offerings. One of the key elements is the expansion of the “earn as you learn” offering. As someone who began his career in industry and moved into education later

10

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

surveying, there is a gap in terms of availability

“ involved in many different committees and panels

haven’t taken a holistic view of what we’re doing.

of programmes and we want to fill that gap.

within the SCSI and, of course, we have partnered

Our students need to have that rounded

It’s about giving people that career path – being a

on CPD and programme delivery over the years.

overview, to understand the impact of the

construction manager, a quantity surveyor or

For us it’s important to have that relationship

decisions they make”.

working in the geomatics or real estate field and

because it’s another way to engage with the

All of this ties in with the question of what the

wanting to develop to the next level”.

industry through the professional body. It’s really

future holds for the profession, and the industry.

Research is also key, and the School’s

beneficial for us to sit at that table with

For Mark it’s about filling the skills gaps, and

postgraduate programme includes PhD offerings:

representatives of the industry and make sure we

working to make the industry more efficient,

“It’s very much industry-focused research into the

have a full understanding of the challenges facing

more productive, and better able to absorb the

problems we are facing today, but also with an eye

industry, thus helping to maintain our currency”.

ups and downs that lie ahead: “Arguably,

(see panel), Mark is aware that not everyone comes to education by the traditional routes: “We have an ethos of lifelong learning. The earn as you learn programme is something Dr Alan Hore developed on the quantity surveying side and it’s been really successful, so we’re looking to expand it across the other disciplines”.

In this part-time, five-year programme, students spend part of the week in classes, and the rest in employment. They earn an income, while gaining a professional qualification alongside extensive work experience: “All of our students will be successful hopefully, but the students who have that industry experience are different because they have the opportunity to apply learning from the classroom on a daily basis. It also gives the industry people they can work with and develop as they complete their education”.

Mark is keen to expand the School’s postgraduate programmes as well: “We have a number of MSc offerings at the moment, and we’d like to expand that, into building surveying certainly, possibly project management as well. With building

OUR GRADUATES NEED TO HAVE THE FACILITY TO THINK CRITICALLY WHEN FACED WITH A CHALLENGE.

really important. Our graduates need to have the

high environmental standard, or refurbishing

facility to think critically when faced with a

existing buildings, but if you go out of urban

challenge. I think in our industry, we sometimes

centres the economies of scale disappear, and

fall into a trap of doing what we did last time. We

it’s more difficult to justify the investment. It is

use a contract type or technical solution because

those practical, real world challenges that I

that’s what we did last time, and it was okay in that

would like to see the School help to address.

scenario. If we have students who have that

When we’re talking about sustainability it’s not

combination of the underpinning of technical

‘oh we should do this because it’s a good thing

knowledge, combined with those soft skills,

to do’. It’s ‘we should do this because it’s a good

resilience, critical thinking, you’ve got a well-

thing to do and here’s how you make the

rounded professional who can challenge the

business case’”.

status quo and help drive the industry forward and

Sustainability is not just about design and

ultimately that’s what we should be delivering”.

construction, but also about the operation of

The School has always had a strong engagement

buildings and ultimately performance in use:

with the SCSI, and that’s something Mark is keen

“There’s a risk that if we focus just on energy

to see continue: “A lot of my colleagues are

and CO2, we build in other problems because we

to the future and how technological developments

the industry has an issue with productivity, lagging behind other industries, and that’s not

We want to try and help to solve them in

A sustainable future for society and surveying

partnership with industry. We also need to work

Before there was Covid, there was the climate

significant strides in recent years to further

with our industry partners to get more women into

crisis. How we plan and build will be crucial to

improve productivity, digitisation, in terms of the

the surveying and construction disciplines and

how we tackle this, and how we educate future

way we communicate and share information,

this will be embedded alongside programme

professionals

too.

is going to be really important. It’s thinking about

development and research in our School

While Mark says sustainability is embedded

how we do things smarter, thinking lean, and

Strategy”.

right across the School’s programmes, there’s

using the technologies that are available to us”.

Mark and his colleagues believe that all of these

always more to be done: “We want to address it

He acknowledges that there will always be some

factors feed into the range of skills that make a

in a real, tangible way. We’ve made huge

fear of change, but the School and TU Dublin

good surveyor: “We do the technical piece very

improvements in recent years – moving to NZEB

have a role to play here too: “If you implement

well, but we’re not just teaching students for the

will make a difference – but there’s still a big

high levels of prefabrication, for example, you

first four years, we’re educating them for a career,

challenge there, particularly with existing

potentially lose jobs because there are certain

so it’s got to be much broader than that.

buildings. We had an undergraduate student this

on-site skills you don’t need, but it also creates

It’s important to have a very good set of soft skills

year who looked at implementing high levels of

opportunities. That’s where the university comes

for communication, and to have resilience.

energy efficiency and what they pointed out was

in; we’re there to help those people find that

We know within our industry things can be difficult

that you can make the argument in an urban

route through another part of their profession

at times. Having the resilience to deal with that is

centre about building new buildings to a very

where there is more opportunity to develop”.

may enable improvements across the industry.

is

therefore

crucial

just an Irish problem. Although we have made

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

11

GUIDING THE SOCIETY THE SCSI HAS THE KNOWLEDGE AND SKILLSETS WITHIN ITS BROAD MEMBERSHIP TO CONTRIBUTE HUGELY TO THE RESOLUTION OF THE HOUSING CRISIS AND CREATE A BETTER CONSTRUCTION AND PROPERTY INDUSTRY, SAYS NEW SOCIETY PRESIDENT MICHEÁL MAHON.

N

ew President of the SCSI

recover from and is something Micheál is

lives there with his family. He attended Waterford

Micheál Mahon takes charge

passionate about avoiding again: “There’s been

Institute of Technology before completing his

during an uneasy time but says

a huge drain of resources in terms of

degree in DIT Bolton St. He went on to do a

the Society will work tirelessly on raising

professionals and tradespeople that the country

postgraduate degree in project management in

awareness with policymakers of the need to

can’t afford. It’s almost a missed generation;

Trinity College.

create a sustainable property and construction

those people should be back here. But history

After many years working in the sector in

industry, and avoid the peaks and troughs that

has shown that’s what invariably happens in our

quantity surveying practices and contracting

damage the sector.

industry when we have a severe recession, so we

organisations in Dublin and the south east,

The last recession led to emigration and skills

have to try and ensure it doesn’t happen again”.

he went on to open his own practice,

shortages. This has proven extremely difficult to

Micheál is from Bunclody in Co. Wexford and still

MGM Partnership, which focuses on the

INTERVIEW Colm Quinn Journalist and Sub-Editor, Think Media

12

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

“

THERE’S BEEN A HUGE DRAIN OF RESOURCES IN TERMS OF PROFESSIONALS AND TRADESPEOPLE THAT THE COUNTRY CAN’T AFFORD.

two professional areas that he qualified in: “We are chartered quantity surveyors and chartered project managers. We’re involved in projects across Leinster, Dublin, the southeast and really we’ve worked on projects across the country in all sectors of the industry,

achieve that sustainable model I talked about. What I mean by a sustainable model is that we don’t

including residential, educational, hotel or

have peaks and troughs, where we go into a recession and then you’re trying to build back up.

commercial developments”.

It takes a long time to recover and get back to required output, particularly in terms of housing units and infrastructure that are needed in the country”.

Priorities

Apart from Covid-19, the issue of the supply of residential property is still the main concern in

The Society runs on teamwork, and one of

the industry and Micheál says the SCSI is uniquely equipped to provide a major part of the

Micheál’s aims for his year as President is to

solution: “The housing issue is an area where the Society can and will contribute hugely because

continue to use that to improve the SCSI:

of our expertise across land, property and construction. Even in the last two weeks, we’ve had

“We undertook a governance review over the last

significant interaction with Government departments and policymakers. To me, the SCSI having

two years in the Society. At the AGM we got

a positive impact on the housing issue is an area I’m hugely enthusiastic about being involved in,

approval to proceed with the new governance

as it is the biggest domestic issue facing the country apart from Covid”.

structures. The implementation of those is one

The SCSI has a number of recommendations on how to increase the supply of housing in the

of my priorities over the next 12 months. We have

country, and improve the industry in general, says Micheál: “We’ve recently issued a report called

a council of 28 members, all top-quality

The Real Cost of New Housing Delivery 2020. We’ve set out recommendations in that that the

professionals from various professional groups

Government should set up a commission for housing, which was outlined in the Programme for

and regions. It’s about harnessing that brain

Government, and get all stakeholders and expertise into that group so that they can make

power and the intellectual knowledge of that

informed decisions. We secondly believe that there should be a land price register, similar to the

group in terms of setting directions and setting

Property Price Register. Land is the great unknown at the minute. You now have visibility on the

policies for the Society moving forward. That’s

property sector with prices all there to see. And we do believe land warrants a separate register.

really what the governance review ultimately is

Certainly, there should be some transparency in relation to land transactions, so that the

about, as well as streamlining procedures and

policymakers can react to that”.

making the organisation fit for purpose”.

The Government should ensure that it backs projects already laid out: “We are pushing, through

Micheál believes communication to those

our involvement as chair of the Construction Industry Council, to ensure that they implement

outside of the sector, including policymakers and

Project Ireland 2040, particularly now in light of the likely downturn in certain sectors. It goes

the general public, should consist of a simple

back to the same theme: we need this sustainable model so if there’s a dip in certain sectors,

message. The Society is unapologetic that the

the Government should be trying to make sure there’s a market for construction because once

country needs a sustainable construction and

the industry capacity reduces it’s so hard for it to get back to the resource levels and the

property industry: “We see ourselves as the

productivity levels that it had been at”.

independent voice of land, property and construction. We’re trying to get that message out there that we will play our part in trying to

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

13

Getting stuck in Micheál is heavily involved in volunteering, especially with the GAA, having been involved at club and county level. He was on the management committee of Wexford County Board. He is also on the board of management of his local secondary school and was director of Wexford Chamber of Commerce.

Micheál is married to Trudy, and they live in Bunclody, Co. Wexford. They have four children: Derry, Ríona, Heather and Robyn: “They all play sports, so we’re constantly driving to training and matches, whether it be GAA or hockey or swimming”.

Micheál’s primary sporting interest is in the GAA but he is also into all sports: “Between work, family, the SCSI and sports, it’s kind of full on. But I’m looking forward to the next 12 months.

We’ve a really great team. I’m really looking forward to working closely with our new CEO, Shirley Coulter, who has worked phenomenally hard since she came into her position in January”.

Covid-19

has built up a certain level of output and

much support as possible during this time in

Covid is obviously a concern for everyone, and

resources, the Government should embark on a

terms of the provision of high-quality CPD,

Micheál says his aim is to steer the SCSI’s path

significant direct public housing programme,

HR consultancy services and other areas:

through the next period of time: “For members,

where they build the housing themselves,

“We actually retained a HR company and made

from the Board’s perspective, obviously we’ll be

outsourcing it to industry basically. Because they

it available to members. The CPD covers all

monitoring the guidance in relation to Covid-19

will get good value for the taxpayer in terms of

sorts of issues, such as finance and practical

and safety is obviously going to be of paramount

tender prices”.

matters, as well as educational material.

concern. We’ll continue to monitor what is

All meetings, including our Council, Board,

happening and we will address each scenario as

Benefitting each other

professional group and regional meetings

it arises in a safe and responsible manner”.

Things like the housing crisis and the industry

have

The pandemic has affected every sector of the

generally, lend themselves to collaboration

Productivity has been really good. The housing

economy, but Micheál believes the construction

between the professional groups, explains

report and other key projects were delivered in

and property industry has progressed safely,

Micheál: “If you take for example, the housing

the middle of all this. There were reports

outside of a few isolated incidences of Covid-19,

crisis, that involves land and it involves

issued recently in terms of residential and

since it opened back up in May: “That has been

construction, so you’d have quantity surveyors

commercial property also, so reports and

good, but our concern now would be, and that’s

and project managers. Then you’d have

output by the Society are continuing at a very

what we’ll monitor going forward, the future

residential surveyors selling units and renting

strong pace and I’m really impressed by the

pipeline of work. Certain sectors are being badly

them. And even when apartment blocks are

output during this period. It’s been brilliant by

hit. Not many funders will fund hotel

finished, we have facilities management people,

all the staff and the professional groups and

developments

retail

so our members are involved from the very

volunteers”.

developments. It’s clear that there will be some

inception of a project, right through to its

sectors worse hit than others in the property and

occupation. I will certainly be trying to harness

Message to members

construction sector. Similarly with offices,

that collaboration that’s already there between

Micheál is available to all members of the SCSI

obviously it is difficult to predict the impact of

the professional groups over the next 12 months

and says he is big on teamwork: “As President

Covid on the demand for office space. It’s early

to ensure the SCSI is at the forefront of

I’m here whether you’re the MD of a large

to say what the likely impact is overall on the

addressing the key issues for the construction

company or if you’re a junior surveyor starting

industry will be. It’s something we’re watching

and property sector in this Covid environment,

out on your journey. I’ve a favourite story:

closely through sentiment surveys and talking to

while also continuing our work to support

allegedly JFK was at a space centre in the early

our members as to what’s happening out there.

members in their professional practice. We aim

60s, where the Americans were plotting to go

There is a concern that certain elements of the

to harness and continue the collaboration

to the moon. He was walking around the facility

property and construction industries will be hit,

between professional groups that already exists

and he saw a janitor cleaning. He went over to

but it’s too early to say exactly what that impact

and enhance it in our approach to housing and

the janitor and he said: ‘Hi, I’m Jack Kennedy,

will be”.

efforts to achieve a sustainable property and

the President’. And the janitor said: ‘Hi, I’m

Micheál thinks that in light of this, something

construction industry”.

helping put a man on the moon’. I like that story

at

the

minute

or

should be done to keep those workers and skills

continued,

albeit

now

virtually.

because it shows everybody is involved and has

in the country and improve the housing situation:

SCSI supporting members

a role to play. I’m here if it’s somebody starting

“There will be certain sectors of the industry

The SCSI has been active during the lockdown,

out in surveying or you’re an MD of one of the

where there will be less demand. As the industry

says Micheál, in ensuring members get as

bigger practices – just reach out”.

14

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

GREENING OUR BUILDINGS BUILT ENVIRONMENT RENEWABLES ARE ESSENTIAL TO MITIGATE CLIMATE COLLAPSE.

W

e have heard a lot

acidify, the fish will die, there will be massive

about climate change

collapse in all the ecosystems of the world, and

in recent years, and

we will continue to see an increase in fires, floods,

can now see the evidence of it in our day-to-day

a bleak picture, but provides a vital wake-up call

hurricanes, heatwaves and desertification. There

lives. Floods, fires, storms, hurricanes and

to those among us who still don’t understand the

will be a slew of new diseases, we will be unable

heatwaves are all more prevalent than ever

severity of the situation we are now in.

to grow food to sustain our population, there will

before, and the ten years to the end of 2019 have

Unfortunately, the current business-as-usual

be mass migration, wars over resources, and the

been confirmed as the warmest decade on record.

approach won’t bring us to merely 1.5º of

global economy will completely collapse. Many of

The Intergovernmental Panel on Climate Change

warming, but rather to 4º, 5º, or more. What will

us will die, and the survivors will struggle to

Special Report on Global Warming of 1.5ºC paints

that look like? The ice will melt, the oceans will

survive in this new, harsh, unforgiving world.

FEATURE Finnbar Howell, Technical Director, KRA Renewables

16

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

“

THERE WILL BE MASS MIGRATION, WARS OVER RESOURCES AND THE GLOBAL ECONOMY WILL COMPLETELY COLLAPSE. MANY OF US WILL DIE, AND THE SURVIVORS WILL STRUGGLE TO SURVIVE IN THIS NEW, HARSH, UNFORGIVING WORLD.

Let’s talk about buildings

Climate change is being driven by greenhouse gases (GHGs), which we urgently need to stop emitting. Renewable energy technologies are key to reducing our GHG emissions, but what does that mean in practice? When we think of renewable energy, we usually envision large-scale wind farms, huge parks of solar arrays and hydroelectric dams. In most of our minds, the built environment is strictly a consumer of energy, and the energy used is generated, drilled for, mined, fracked, or otherwise produced somewhere else.

The built environment uses a lot of energy, and globally is responsible for an incredible 39% of all GHG emissions (World Green Building Council, 2017). Some 11% of that is the

Heat Heating is a much bigger challenge. In Ireland, despite the abovementioned

70%

fossil-fuelled

grid

power,

we

congratulate ourselves on having gotten that far. When it comes to heating, we’re not even close to that. We’re well above 90% reliance on fossil fuels, and even our target, which we will miss, was only to reduce this to 88% by 2020.

We typically need heating for two things: space and water.

For space heating, the best solution is the use of a heat pump, which works like the compressor in your fridge, pumping the heat from the air, water or ground into (or out of, when cooling is required) buildings. Whether air source, water source or ground source is the right choice depends a lot on the building and its surroundings. Ground source heat pumps are more expensive to install, but also much more efficient in winter when you need heat the most. For water heating, you can also use a heat pump, or solar thermal modules, which have much higher efficiency than PV modules, but can only produce hot water.

”

WE DON’T CHOOSE OUR FUTURES. WE CHOOSE OUR ACTIONS, AND THOSE DECIDE OUR FUTURES.

embodied emissions of construction and manufacturing, which still leaves 28% of total

Thinking holistically

global GHGs from the operation of buildings. It’s this 28% that we should be talking about.

Heat pumps should strictly be classed as a high-efficiency

So we see the challenge: we need to reduce the fossil-fuelled operational energy use

device, since they require a source of electricity, and only

of buildings to zero, and we need to do it now. Some of this reduction can come from

become a true renewable device when combined with

efficiencies, and the natural starting point is the low-hanging fruit: LED lighting and

renewable electricity. This is true of much of the built

light controls, insulation, replacement of inefficient fixtures, etc. Another aspect is

environment renewables suite. A combined heat and power

behaviour: thinking about our usage and having plans and policies in place to increase

(CHP) system burns natural gas at very high efficiency to

efficiency and minimise waste. But this can only bring us so far, and at that point we

produce both electricity and heat, and offers huge GHG

must stop thinking about reduction and start thinking about generation.

reductions, but is not truly renewable unless supplied with

Built environment energy use is split between demand for electricity, heating and

biomethane. Electric cars tie into the built environment

cooling (not so much of this last one in Ireland). There’s also the interplay with

through electric vehicle (EV) charge points, and offer a way

transport, as a lot of us still drive from one building to another.

to green transport, but in truth only offer lower emissions, not zero, unless fed with green electricity. This highlights

Electricity

the need to think holistically and see the bigger picture of a

Let’s start with electricity. Grid electricity is still very dirty, with around 70% on average

building’s energy demand.

still coming from fossil fuels. This fluctuates throughout the day and year, and if you’re

There are plenty of reasons why built environment renewables

curious as to what it is right now, check out www.electricitymap.org/zone/IE. For many

are a smart choice: they reduce grid losses by producing close

buildings, electricity is the largest source of emissions and the easiest to green.

to demand, add value to properties, cut costs significantly,

Solar photovoltaics (PV), or solar panels as they’re usually called, are a proven clean

protect against increasing energy prices, increase air quality

technology. They’ve become incredibly cheap (dropping 80% in price within ten years),

and thermal comfort, offer good PR, and raise awareness.

and are durable, long lasting, predictable in output, and safe. How much of a building’s

But for me, the most important thing about them is that they

electricity they can produce depends on a lot of factors (building demand, orientation,

offer the only pathway to bring the operational emissions of

tilt, shading, and roof type to name just a few), but new technologies such as higher

the built environment to zero, an urgent and necessary change

efficiency modules, solar facades and the solar brise soleil are now increasing that

to preserve this beautiful, fragile ball on which we all dwell.

generation potential during daylight hours, and the rapid advances in battery storage

We don’t choose our futures. We choose our actions,

are fast making electricity storage more viable economically and environmentally.

and those decide our futures.

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

17

UNCERTAIN TIMES THE COVID-19 PANDEMIC HAS LED TO THE USE OF MATERIAL UNCERTAINTY CLAUSES IN RED BOOK VALUATION REPORTS.

T

he

RICS

Valuation

Global

Standards,

?

more commonly known as the Red Book, which complies with the International

Valuation Standards, is globally recognised and respected as the basis for all RICS Registered Valuers providing a written valuation, who are required to comply with the Standards.

One of the core aims of the Standards is to improve consistency across the profession and, crucially, provide transparency for clients on the valuation methods used in assessing the value of a property, and that the instruction is undertaken in a methodical manner.

FEATURE Shane O’Beirne Professional Services Dept., Lisney Chair, SCSI Material Uncertainty Forum

18

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

ONE OF THE CORE AIMS OF THE STANDARDS IS TO PROVIDE TRANSPARENCY FOR CLIENTS ON THE VALUATION METHODS.

Transparency means that the report contains full disclosure of any and all

To assist in determining a valuation, the RICS advises valuers

considerations made by the valuer in forming their opinion. One of the key factors

to review the Guidance Note on Comparable Evidence and also

in recent months, following the emergence of Covid-19, is the use of a material

collate supporting information from agency colleagues to

uncertainty clause (MUC) in reports. Its use has led to some misunderstanding

include quoting prices, offers received, sale agreed prices and,

of its meaning, its intention, and when and why it is used, particularly among

where available, those properties that have transacted since the

some clients.

start of Covid-19 and their specific circumstances.

The topic of material valuation uncertainty is contained in the Valuation Standards

In larger markets, such as the UK, the RICS has run a leaders’

and it is important to understand that its use is not a disclaimer but rather a

forum assessing where, through demonstrable market activity

disclosure to the client. To date, the RICS has only recommended specific

since Covid-19, there are grounds for members to consider

consideration of its use three times: in the aftermath of the global financial crisis;

removing or adapting the MUC in their reports. Where this has

after the Brexit vote; and, now, following Covid-19.

been considered in England, or perhaps more specifically in

The use of the clause in the current circumstances reflects that it can often take time

higher transaction volume markets like London, it has been

for comparable transactions, which valuers utilise as part of their valuations,

transactional evidence led. Markets such as England are much

to transact due to the conveyancing process, etc. As a result, a property that sold pre

larger than that of Ireland, and an improvement in market

Covid-19 may not reflect the current market, and the market as of the valuation date

activity there reflects such an approach.

may not yet be demonstrable by more current transactions alone.

The SCSI approach Criteria when considering whether to declare material uncertainty

In the SCSI, members of the Valuation Committee recognised

1. There is evidence of disruption to markets because of one or more

that while the MUC commentary was global, further

unforeseen events, accompanied either by:

recommendations provided by the RICS could only reflect the

a. “inconsistent, or an absence of, data”; or,

market in England and were perhaps even more focused in

b. “an unprecedented set of circumstances on which to form a

London and major cities. The key point of the advice from the

judgement” (Valuation Practice Guidance Applications (VPGA) 10,

RICS is that it is down to the individual valuer to assess the

Section 2, paragraph 2.4).

specific sub-market circumstances to determine whether to “insert, maintain or remove” the commentary in their report.

2. There is a “degree of uncertainty in [the] valuation [that] falls outside

The decision not to include the commentary must not be

any parameters that might normally be expected and accepted”

sentiment led and must consider a body of sales evidence,

(Valuation Technical and Performance Standards (VPS) 3, Section 2.2

bids, and transactional activity reflecting the market as of the

(o), paragraph 1).

valuation date. In the SCSI, a group of valuers meet each week with representatives from Cushman & Wakefield, Colliers,

3. The valuer’s concerns about the greater degree of subjectivity involved

Savills, CBRE, GVA, Knight Frank, QRE, BNP and Lisney.

in the valuation need to “be expressly signalled in the report” (VPS 3,

The group facilitates the discussion on market subsectors by

Section 2.2, (o) paragraph 4).

reviewing new comparable sales, sale agreed deals, and price chipping with a view to making similar recommendations to the

The “overriding requirement is that a valuation report must not be misleading

UK Forum but focused on the Irish market.

or create a false impression” (VPGA 10, paragraph 3.1).

As of the current date, the advice is that the removal of the

The RICS suggests that valuers consider using the following wording in

commentary in Ireland is under continuous review with updates

valuation reports:

provided to members through the SCSI.

“The current unprecedented circumstances are challenging for everyone.

The SCSI Forum (ROI) met on September 18 to discuss material

RICS expects its members and firms to act professionally and transparently

valuation uncertainty in the Republic of Ireland real estate

at all times and this is particularly important when market conditions are

market. The Forum assessed the current situation against the

changing rapidly.

agreed criteria and formed a consensus that reporting material

“Where a material uncertainty clause is being used, its purpose is to

valuation uncertainty may no longer be appropriate for five

ensure that any client relying upon that specific valuation report

property types; instead, it may be more appropriate to use a

understands that it has been prepared under extraordinary circumstances.

market conditions clause. Those five property types are:

The term is not meant to suggest that the valuation cannot be relied upon; rather, it is used in order to be clear and transparent with all parties, in a

1. Residential.

professional manner that – in the current extraordinary circumstances –

2. PRS/multi-family (excluding student accommodation).

less certainty can be attached to the valuation than would otherwise be the

3. Social housing on long-term leases to Government, housing

case. Indeed, with regard to the process itself, professional valuers will

bodies or local authorities.

almost certainly have undertaken far more due diligence than normal,

4. Industrial/logistics.

in order to arrive at their estimate of value”.

5. Institutional grade primary healthcare facilities.

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

19

PLANNING PERILS – PART II THE SECOND PART OF THIS ARTICLE OUTLINES THE IMPORTANT TAKE HOMES FOR SURVEYORS FROM A RECENT LEGAL DECISION.

T

he Aarhus Convention of 1998 covers: access to

Rulings are not retrospective: They merely require the State to remedy the impugned

information; public participation in decision-

law following a successful determination of a case.

making; and, access to justice in environmental

matters. A case taken before the Aarhus Convention

Duration: Cases taken to the ACCC take a long time to determine. This complaint was

Compliance Committee (ACCC) in relation to an extension of

made in 2013 and only determined in August 2019.

planning permission for a quarry in Meath found, in August 2019, that Meath County Council had failed to comply with

Time consuming: A significant amount of time is required to pursue such a case, with no

Article 6 (10) of the Convention, which relates to public

guarantee of success. I always found it very difficult to reconcile the fact that officials in the

participation in decisions. There are a number of points for

employ of the State, together with independent contractors (barristers), get paid, while the

surveyors to take away from this ruling.

complainant (termed the ‘communicant’ by the UN) is expected to act on a voluntary basis.

FEATURE Kieran Cummins Solicitor and Secretary, Eco Advocacy

20

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

“

DESPITE WINNING THE CASE, THERE IS NO FACILITY FOR A COMPLAINANT TO RECOVER COSTS. THEREFORE, IT WOULD BE VERY DIFFICULT FOR ANYONE TO ENGAGE PROFESSIONAL LAWYERS TO REPRESENT THEM IN SUCH A CASE.

Absence of planning notice at site to be backfilled In October 2019, we became aware that the same local authority (Meath County Council) was considering an application to backfill a disused quarry. The time for lodging a submission had just passed. There was no notice on the roadside outside the site in question, which was on the side of a main road. Instead, a planning notice had

Costs: Despite winning the case, there is no

stated: “…I am satisfied, on the basis of the

apparently been erected on a minor road over

facility for a complainant to recover costs.

provisions and authorities referred to above,

three miles away. The local authority had failed to

Therefore, it would be very difficult for anyone to

that European law requires that the public be

implement the legislation, which specifically

engage professional lawyers to represent them in

entitled to participate at the application for leave

provided for the erection of a second notice in such

such a case. While legal representation is not

stage of the substitute consent process. It is worth

circumstances. Section 19(3) of the planning

essential, the State had a full team comprising

noting that section 6(4) of the Aarhus Convention

regulations specifically stated: “Where a planning

departmental officials, a solicitor from the Chief

provides that ‘Each Party shall provide for early

authority considers that the erection or fixing of a

State

public participation, when all options are open and

single site notice is not sufficient to comply with

effective public participation can take place’”.

the requirements of sub-articles (1) and (2),

Solicitor’s

office

and

a

barrister.

I represented myself, but fortunately I have the benefit of legal training.

or does not adequately inform the public, the

Update – Section 177(c)

authority may require the applicant to erect or fix

Has it made a difference?

Regarding the quarry at the heart of ACCC/

such further site notice or notices in such a

Looking at the bigger picture, it has made a

C/2013/107, in May 2019, I learned that An Bord

manner and in such terms as it may specify and

difference, but at local level it hasn’t. The same

Pleanála had granted permission to apply for

to submit to the authority such evidence as it may

local authority has continued to construe

retention of a significant amount of unauthorised

specify in relation to compliance with any such

legislation against public participation.

development. There had been no mention of this

requirements”. The facts and the appropriate

In early August 2020, I became aware of one more

application on the new listings months earlier and

legislation were brought to the attention of Meath

quarry that had applied for an extension of

again no site notice. This time the quarry operator

County Council, but they refused to accept that

duration. On inquiring of Meath County Council

was attempting to rely on s.177 (c) of the Planning

they had erred and thereby denied the public a

whether this was open to public consultation,

Act, which provides for substitute consent

right to participate.

I was informed that: “Presently you cannot make

(a mechanism to regularise planning consent on

In conclusion, while ACCC/C/2013/107 was

a submission on an Extension of Duration

quarries that did not have appropriate planning in

successfully fought and has provided important

application”. This from the very same County

place). It transpired that they had applied directly

jurisprudence, I have found that even when

Council at the centre of ACCC/C/2013/107, one full

to An Bord Pleanála on December 21, 2018.

quoting this case to the very same authority with

year after the Geneva decision and seven years

Apart from the public participation element,

a similar issue, they have failed to admit their

unbelievably, An Bord Pleanála granted the

error. As long as there are no consequences for

applicant’s leave to apply for retention of a whole

public officials, this will remain the case.

Recent Supreme Court developments

swathe of unauthorised development in one fell

It is heartening to see that the recent Supreme

The decision on An Taisce, Peter Sweetman &

swoop under s.177 (e) among other things, on the

Court decision shines some light on the matter.

Others vs An Bord Pleanála and Others [9/19, 42/19

basis that the applicant might not have known they

It follows that one must be prepared to pursue any

and 43/19] was delivered by Mr Justice McKechnie

needed planning permission. As a gateway to

grievances one may have through the courts.

on July 3, 2020. When the determination of case

substitute consent, the recent Supreme Court

This is, however, a very time-consuming process,

ACCC/C/2013/107 was issued in 2019, it was

judgement said of 177C/177D that: “It is not a mere

which requires a significant financial input.

pleaded in the Supreme Court. When the Supreme

technical or box-ticking exercise; rather it is a

Precious court time is also required at a time

Court ultimately issued its judgment a year later,

highly significant aspect of the overall process,

when courts are very congested. It would be

it specifically alluded to the relevant provisions of

in that the outcome of the leave application will

helpful if the legislation was strengthened

the Aarhus Convention in part of its reasoning,

determine whether the application for substitute

whereby local authorities are mandated to abide

thereby incorporating the principles of the

consent (which is itself an exceptional avenue, given

by the Convention’s principles and citizens can

Convention into Irish case law. McKechnie J.

the requirements of EU law) can be made at all”.

avoid having to resort to the courts.

after I initiated the case with the UN ACCC!

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

21

CHANGING SPACE THERE HAS BEEN A PALPABLE MARKET SHIFT IN THE PROPERTY MARKET SINCE COVID-19 WAS FIRST EXPERIENCED IN IRELAND EARLIER THIS YEAR, AND THE CHANGE CONTINUES.

T

he sectors of the market have been impacted in different ways and it is interesting to see the resilience of ‘defensive’ assets to date in the residential and industrial sectors. The impact of psychology in terms of herd behaviour and market sentiment

is an important variable as we try to navigate the likely future projections and performance of the property sub-sectors. The varying impacts on households are also key factors, with some experiencing minimal change and others devastated by job losses and income reductions, not to mention health impacts on family members.

Until a vaccine is created and utilised, we can expect ongoing disruptive impacts on the market.

The pandemic will particularly affect businesses that rely on gatherings of people such as music venues, theatres, restaurants, retail and co-working spaces.

While there are certainly negative impacts, there are also opportunities to rethink how we design and utilise our built environment. It is rare that an event occurs that so substantially shifts the market paradigm that it offers a large-scale

“

rethink on what we consider the fundamentals of that market. How we occupy buildings, the preferred locations of different asset types, the way we travel, the way we work and interact, all of these are shifting and we have a unique opportunity to shape our cities and towns in a different (and better) direction.

FEATURE Claire Solon MD, Greystar Ireland

22

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

BETWEEN MAY AND JULY, THE NUMBER OF RENTAL ADS IN DUBLIN WAS APPROXIMATELY 50% HIGHER THAN THE SAME PERIOD IN 2019.

Emma Leonard Associate Director, Sigma Retail Partners

Residential House prices have remained fairly stable, though with upcoming changes in pandemic unemployment payments, mortgage restrictions and continuing disruption to employment, there will likely be a decline in pricing. In terms of supply, the lockdown and

Office

reduced efficiencies on site due to social distancing and supply line have had an impact on

The Covid-19-imposed lockdown forced office

projected completions this year. While demand projections vary between sources, supply in

workers to grapple with working remotely. Post

2020 will be well short of the units required. House completions fell by approximately one-third

lockdown, remote working still features heavily

in Q2 this year to just over 3,000 units completed, with Dublin experiencing the largest reduction.

with a number of large companies announcing

Rental growth has increased year on year nationally, though there is evidence of rental reductions

measures to work remotely until at least Q1 2021.

in certain locations. This seems to have been exacerbated by short-term lets in the city centres,

With many workers able to work from home,

particularly Dublin, being converted to private residential stock earlier in the year. Between May and

the necessity for space is not a key determinant

July, the number of rental ads in Dublin was approximately 50% higher than the same period in 2019.

in completing transactions. Of the offices that

The recent SCSI report on the residential property market showed that 8% of residential tenancies

have reopened, the majority have reduced the

did not pay their rent as a result of the pandemic. This is expected to worsen. It should be noted that

number of workers on site. The requirement for

only one-third of tenants who did not pay provided “satisfactory evidence for the inability to pay”,

technologically advanced and ‘smart’ buildings

which should mean some recouping of rents owed.

will likely be heightened for both business reasons but also the management of employee

Retail

health and well-being.

The initial lockdown measures had a significant negative impact on all operating in the retail

While research is showing that there is likely to

space, with the exception of essential retailers, who saw turnover increase. Some retailers that

be an element of remote working post Covid-19,

were required to close faced the prospect of trading solely online. Central Statistics Office figures

historically businesses have fared better with

show that total retail sales generated online increased from 4.5% in March to 15.3% in April, but

co-workers coming together and benefitting

as shops reopened, this decreased back to 4.5% in July. By way of comparison, in July 2019,

from knowledge working beside each other.

this share was 3.4%.

There is also the social and human side to the

City centre retailers without the footfall associated with workers, tourists and students, are

creation and maintenance of a supportive and

performing lower than their suburban or regional stores. Expenditure linked to home and working

constructive working environment.

from home is strong, but products linked to socialising and occasions continue to struggle.

The leisure, events and pub sectors are still severely impacted. Outdoor space has increased in

So what does the future hold?

desirability and value in delivering additional seating areas, with a repurposing of public realm in

Development of new property is likely to be

cities and towns. This can be a positive impact of the pandemic.

reduced in the short term due to risks regarding

While there have been some well-reported failures, these were typically retailers facing challenges

cashflow projections, and the cost of development

pre Covid-19. Retailers who have successfully embraced the ‘Phygital’ environment, which

finance. Not every business will survive, and

recognises the physical store alongside digital platforms, will continue to be successful. Those who

landlords and tenants need to work together and

invest in omni-channel methods to supplement their physical store will emerge stronger.

find solutions. Improved flexibility in lease terms and covenants, turnover- and sustainable-related

Industrial

rent, monthly payments rather than quarterly to

Despite many industrial and manufacturing companies facing difficult times due to supply chain

assist cashflow, conditional break options, and

disruption, cost escalation and workforce dislocation, the overall sector has proved relatively

the insertion of pandemic clauses are potential

resilient. There are a number of ongoing speculative developments, with units under

changes in the way we formulate agreements.

construction at Greenogue Business Park, and Aerodrome Business Park due to

The ability to deal with change has always been a

commence later this year. The demand for warehouse space to allow online distribution

key aspect of a successful business and this has

of goods has increased. It is worth noting that the threat of Brexit on the export and

been highlighted by recent events. Businesses

manufacturing industry still looms. Investment opportunities can be derived from

need to pivot in reaction to the underlying

anticipating future occupier requirements, customer strategies, and enabling

fundamentals within their own market and make

supply chain resilience.

organisational changes efficiently. There is an opportunity to embrace and use technology.

While Covid-19 will bring about new ways to use space, fundamentally, we are happier socialising and working alongside each other.

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

23

THE FUTURE OF RESIDENTIAL SALES THE COVID PANDEMIC HAS FOCUSED THE EYES OF EVERYONE ON HOW TECHNOLOGY CAN HELP THEM DO THEIR JOBS, AND INNOVATIVE SOLUTIONS ARE AVAILABLE FOR RESIDENTIAL SURVEYORS TO IMPROVE THE PROPERTY SELLING PROCESS.

T

he property industry has reached a crossroads, according CCO of Offr, Philip Farrell: “What is key here,

and it’s not just as a result of Covid, is that the property industry is now going through the most radical change in how it operates in 100 years.

Jonathan says the company is working with about 20 strategic partners around Ireland and the

That is going to continue and is going to be driven

advantage for these smaller firms is the speed of transactions.

by proptech and tech products”.

Necessity is the mother of innovation as well as

New tech available

invention, and Covid has woken surveyors up to

There are a multitude of companies offering new tech to help surveyors advertise, sell and complete

the need to adopt new technologies. This is

the transaction process. Healy Hines, CEO of Beagel.io, says the company’s platform offers a way for

something that Jonathan Fenn, Director and

agents to upload properties online and then those interested can view details and make offers online

Head of Ireland at BidX1, has noticed: “There’s

24 hours a day. Healy explains: “Beagel Bid is a bidding provider; we power the online bidding transaction

definitely been a tech awakening in our industry

for the estate agent. We effectively enable them to run their businesses 24 hours a day. We connect the

since Covid happened. It’s very much been at the

estate agents, their vendors/clients, any purchasers, anybody that’s interested in the property, solicitors,

front of the transactions. There are a lot of

everybody who’s involved in the transaction, and give transparency on the overall bidding process”.

adaptions around digital viewings, 360º tours,

When someone expresses interest in a property, they can see what the current offer status is.

digital floorplans, interactive viewings, and that’s

Once they express an interest in it, they can make offers and be kept updated live with what offers

all well and good and it’s really improving the

are made on the property.

outlook for the property and how it appears online.

Philip Farrell explains that Offr is a button that sits on the agent’s own website in their branding.

More importantly, we see changes around the

When viewing a property, you click the button and a panel will pop up in the agent’s colours. In this

bidding and the closing parts. That’s ultimately

panel, buyers can upload proof of ID and proof of funds, register to bid, make bids, make appointments,

where our industry needs to make big strides and

and complete a virtual viewing and a 3D tour: “It creates one environment for everyone to plug into so

introduce technology to it. The more transparency

they are able to transact in a much more efficient manner. They can submit offers and the agent can

we can put around bidding, the more speed we can

decide what conditions they require. The agent must approve people to make their offers. Agents can

put around closing the sale, that’s going to have a

decide the levels of compliance and details they want from each buyer before they submit their offers”.

huge impact on our space”.

IAM Sold Property Auctions runs online auctions and public auctions across the island of Ireland.

FEATURE Colm Quinn Journalist and Sub-Editor, Think Media

24

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

Director Patrick Convey explains that IAM Sold fully manages the auction process for the estate agent and supplies them with their own branded auction page for their website: “We support the agents from the appraisal of the property, we issue the auction

agreements,

get

all

the

compliance, money laundering, etc. Once we get the instruction back in, we liaise with the vendor’s solicitors, get auction packs, carry out the auction marketing and sales support, deal with inquiries for agents and then manage the auctions, be they online or public auction events”.

For surveyors who deal with a lot of land and farming property sales, LSL Auctions offers an online auction service. CEO Brendan Hannigan

“

AGENTS ARE REALISING THAT THERE’S A LOT OF TECHNOLOGY THAT’S OUT THERE TO HELP THEM IMPROVE THEIR BUSINESSES AND BECOME MORE EFFICIENT.

summarises what the system enables surveyors

help alleviate this: “The perception in the market

to do: “We’ve created a multimedia upload

is that there are a lot more fake bids than there

functionality on our platform that allows videos,

actually are … If you have someone making an

plans, photographs and any surveying data to be

offer and they know anyone else who is bidding

uploaded. People can watch videos of property or

has had to go through the exact same process,

land, or any other information that needs to be

that gives them comfort. They trust it. They can

uploaded. The system can then be set onto a

see on the screen the offers that have been

timed option, for example, starting in a month and

made, so they know it’s much more transparent”.

running for a month, or starting in a month and

Jonathan says the new technology available to

running for a day, or it can be for a live option,

residential surveyors is there to help them and

specifically live for a period of time”.

improve the service they offer to clients: “Really, I think another message is when sellers

Adoption time

are deciding who they’re going to use when

Healy says that with Covid-19: “What agents are

they’re selling something, it’s important for

realising is that there’s a lot of technology that’s

them to now consider technology. It’s all well

out there to help them improve their businesses

and good using an agent with a reputation but

and become more efficient”.

they need to consider is technology going to be

The two most important pieces of tech

a part of their transaction. Are there going to be

residential surveyors should adopt according to

digital viewings? Is there going to be digital

Jonathan are something to allow people to bid

bidding? Are the legals going to be available in a

digitally, whether it’s binding or non-binding, and

data room for people to view? Because

secondly, a method of allowing legal documents

ultimately for the seller, if these are all there,

to be listed online.

it’s going to give the buyer a better experience

Patrick highlights online bidding and online

and probably close the sale a bit quicker”.

auctions as important for agents to adopt: “Auctions are a hugely popular method of sale across the globe in the likes of England, Australia and the US. Ireland is really in catch-up mode”.

The property industry is one which suffers from a trust issue according to Philip and new tech can

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

25

LOCATION INTELLIGENCE DATA PROVENANCE IS ESSENTIAL IN ASCERTAINING CORRECT GEOSPATIAL INFORMATION.

Nowadays, we hear a lot about ‘location intelligence’, but very little about what

T

makes the spatial data intelligent in the first place, i.e., its provenance.

When available, this information can be used to determine suitability for purpose and confirm the kind of intelligence that can be reliably determined from the information. he ‘belt and braces’ approach to navigation:

Geospatial data provenance is well understood

‘Never rely on a single positioning source on its own’ and ‘How to get your position

in professional navigation practice, where

very precise and completely wrong’ are two major learning points from my

information accuracy is a real-time and safety-

professional career in the geospatial industry to date.

critical consideration.

The premise of these learning points can be summed up in another learning point from military

As someone who has navigated ships in

intelligence practice: information is not intelligence until it is processed and validated against

confined situations, taught navigation to Master

other information and other sources. When it comes to geospatial information, data provenance

Mariners, worked on precise geodetic projects,

facilitates validation and is vital in order to add user confidence to the process of turning

and prepared geospatial evidence for legal

information into intelligence.

cases, I can assure that informed ownership of the provenance of geospatial data is what

FEATURE

convinces a jury and keeps ships, aircraft and

Gary Delaney Geospatial forensic analyst, Global Position Intelligence (GPI)

and saves on cost. It is what turns information

26

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

human beings safe. It also prevents disputes into location intelligence, including in landbased geographic and geodetic applications.

Foundation stone Geospatial data provenance should be the foundation stone of all geographic information systems (GIS). Metadata carries a lot of information, but rarely the source, accuracy and currency of the geospatial data it is related to. I designed and ran the first professional Electronic Chart Display and Information System (ECDIS) course in Ireland in 2003.

ECDIS and SP57 electronic charts and standards, which have evolved considerably since then, have ensured that the same data provenance remains an inherent part of chart information, now in electronic form. This facilitates confident integration with real-time

In maritime law, the geospatial definition of boundaries and

location systems and with the navigator’s professional interaction to turn ECDIS

related baselines is critical to national governance. For all

information into real-time navigation intelligence for critical decision-making.

these reasons, geospatial data exchanged without the full

It is true, though, that the intelligence determined from marine and air information

details of the source, accuracy, CRS and vertical references

systems may not always be perfect if provenance data is not specified correctly to survive

used is unforgivable in this technological age where doing this

the passage of time. A major finding of my dissertation for my Masters in 1997 was the

is easily facilitated.

misidentification of the horizontal datum published on most charts of Irish waters at the time as an “Ordnance Survey of Ireland Datum”, suggesting a relationship to the OSI and

Precision versus accuracy

one of their published transformations, when in fact it was a British Admiralty datum

Nowadays, the widespread use of GPS/Global Navigation

based on a Second World War Office False Origin (WOFO) Spheroid – the correct

Satellite System (GNSS) as the source of geographic

interpretation of which had been lost in time and across national administrations. In this

information means that there are other not-so-obvious issues

case, while provenance data had existed, it had been left open to misinterpretation due

that must also be identified and recorded as part of geospatial

to the passage of time.

data provenance. This raises the spectre of precision versus

For this reason, since my conversion to predominantly landlubber geospatial pursuits in

accuracy. You can express a latitude and longitude derived from

1998, the above axioms and the WOFO revelation have guided my approach.

a mobile phone to as many decimal places as you wish, but that

Too often I have been told that a GPS was producing co-ordinates that were “hundreds of

does not specify the position accuracy and, therefore,

kilometres in the wrong location”: the difference between Irish Grid and Irish Transverse

pretentious precision could belie the suitability of the data for

Mercator (ITM) co-ordinates mistakenly plotted on mapping with the opposite co-ordinate

any location intelligence that may be determined from it.

reference system (CRS).

Where high-accuracy GNSS survey systems are used to

Too often have I heard allegations of height/elevation errors of 56 metres or 2.5 metres,

determine geolocation, then there are also other data

both of which are respectively the rough differences between two different ellipsoid

provenance considerations because of modern practice.

heights and two different orthometric heights. And nowadays we have the differences

The move from hard nail ground-based primary geodetic

between the OSGM 02 and the OSGNM 15 Geoid models to contend with also.

control to control based on the ongoing network adjustment

These can be the cause of much argument in court when road sections don’t precisely

of the location of the phase centres of GNSS antennas

meet as intended, when contracts are disputed or when two neighbours dispute the

dictates that any co-ordinates or elevations calculated must

correct location of their common boundary. Unlike the marine/air navigation examples,

now also include provenance data.

they are not real time and not safety critical but the cost and disruption can be

Failure to record this information frequently results in

substantial. I recently provided geodetic technical input into a proposal to provide a

disagreements. Like is not compared with like and too much

Middle East national oil management company with the solution to decades of failure

is expected of data that may be expressed with high precision

to maintain the provenance of its own key geospatial information. That failure was not

or even given the term ‘precise’ but has an unsuitably low

only incurring substantial cost on an ongoing basis, but is now costing close to US$2

accuracy probability.

million to put the resulting issues right.

The introduction of Eircodes in Ireland is one of the most significant geospatial infrastructure projects undertaken in recent years. It has introduced the idea of geospatial accuracy to the general public. Some issues reported, however,

INFORMATION IS NOT INTELLIGENCE UNTIL IT IS PROCESSED AND VALIDATED AGAINST OTHER INFORMATION AND OTHER SOURCES.

have raised questions about the provenance of the source data and related processes used to generate and deliver the code.

There are many other issues to be considered when it comes to geospatial data provenance. It is definitely worthy of further research. From my perspective, much can be learned from marine and aeronautical practice, where geospatial data provenance is critical to safety.

There is no doubt that geospatial data needs very specific data provenance information to support the determination of reliable and appropriate location intelligence from it.

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

27

MUCH OBLIGED

S

HOW MIGHT AN EMPLOYER’S EXPRESSED OBLIGATION TO CO-OPERATE WITH THE CONTRACTOR OPERATE IN A PUBLIC WORKS CONTRACT?

ub-clause 4.1.1 of an Employer

What is an obligation to co-operate?

Design Public Works Contract

Many academic papers that examine co-operation clauses refer to them as collaboration clauses

(PWC) states that:

and deem them to be an expressed obligation to act in good faith. In Costain Ltd v Tarmac Holdings

“The Employer [subject to restraints as a public

Ltd [2017] EWHC 319 (TCC), Coulson J., in determining the meaning of the NEC3 collaboration

authority] and the Contractor shall support

clause 10.1, which uses the phrase “work together in a spirit of mutual trust and co-operation”,

reciprocal co-operation for the Contract purposes,

drew a parallel between “mutual trust and co-operation” and obligations of “good faith”.

including

co-operation

with

and

between

Contractors Personnel and Employers Personnel”.

What is the scope of an employer’s expressed obligation to act in good faith?

Due to the impact Covid-19 has had on

The scope and application of a good faith provision will depend on the clause wording and rules of

construction projects, the Office of Government

interpretation. The rules of interpretation were summarised in Costain Ltd v Tarmac Holdings Ltd,

Procurement (OGP) has asked in its Covid-19

where Justice Coulson affirmed that the starting point for the interpretation of a contract provision

guidance notes that the parties make every effort

is the language the parties have chosen. Keating on NEC3 regarded clause 10.1 of the NEC3 (see

to co-operate with each other by making specific

above) as a widely drafted clause, providing a “portmanteau general obligation” or an overarching

reference to the above clause. This guidance from

obligation to act in good faith.

the OGP is welcome, but what does an obligation

Enforceable rights may be created by overarching good faith obligations, which may impose

to co-operate with the contractor mean?

obligations in addition to the proper performance of the parties’ other contractual duties.

This article aims to answer this question by

However, in Mason (a firm) v WD King Ltd [2003] EWHC 3124 (TCC), the courts seemed to take the

defining what an obligation to co-operate means

view that there was only a remote possibility that overarching obligations would carry more weight

and what the scope of a co-operation clause might

than other more specifically drafted provisions. Sub-clause 4.1.1 of the PWC is widely drafted like

be. The impact an obligation to co-operate may

clause 10.1 of NEC3, and could be regarded as being an overarching obligation to act in good faith.

have on an employer’s other rights and obligations

This clause could impose obligations in addition to the employer’s other obligations, especially when

in a PWC is also considered.

the employer and their representative are exercising their decision-making functions.

FEATURE Peter McCarthy Principal Consultant, McCarthy Dispute Resolution Ltd

28

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

What impact would an obligation to co-operate have on an employer’s other rights and obligations in a Public Works Contract?

As the law of good faith is relatively new in Irish and UK common law jurisdictions, the body of law dealing with this topic is relatively limited. However, case law suggests that an express obligation of good faith will have little or no impact on an employer’s other expressed terms.

In Portsmouth v Ensign [2015] EWHC 1969 (TCC), where an expressed obligation of good faith was found to exist, the Court said it is to be read alongside other contract provisions and those other provisions will be deemed to exclude the good faith obligation where they are clear in what is required, or where a different value is given to inform the nature of those other obligations.

However, in Northern Ireland Housing v Healthy Buildings [2014] NICA 27, obligations of good faith were found to have an impact on other contractual obligations where an employer has to use their discretionary powers where the contract is relational in nature.

Construction contracts could be regarded as being a relational type contract. Where an overarching obligation of good faith exists, it may assist in the interpretation of other obligations, especially those obligations that involve the exercise of some discretion.

Academic papers say that good faith requires that discretions be exercised for the purposes intended by the mutual agreement of the parties, and not opportunistically or arbitrarily. McKendrick in Comparative Contract Law says that discretion must firstly be exercised honestly. Secondly, it must be exercised for the purpose for which it is given, and it must not be exercised improperly.

Thirdly, the discretion must not be exercised arbitrarily, and fourthly it must not be exercised unreasonably.

In a recent High Court case, Mid Essex v Compass Group [2012] EWHC 781 (QB), it was decided that if a relational contract contained an overarching obligation to act in good faith, then it could impact on how the employer used their discretionary powers.

The findings of the High Court were as follows: n the contract contained an overarching good faith obligation; n this obligation imposed a broad obligation on the employer to act reasonably in conducting the

“

CASE LAW SUGGESTS THAT AN EXPRESS OBLIGATION OF GOOD FAITH WILL HAVE LITTLE OR NO IMPACT ON AN EMPLOYER’S OTHER EXPRESSED TERMS.

contract by not taking unreasonable actions; n the employer’s contractual entitlement to make deductions from service payment due to the contractor were regarded as discretionary; n the Court found that the way the deductions were calculated was absurd; and, n this behaviour was deemed in breach of the employer’s obligation to act in good faith.

Conclusion UK law as it currently stands suggests that an ‘overarching’ obligation of good faith will have little or no impact on the parties’ other expressed terms, which are clearly written. Irish law is likely to follow its common law cousins. However, where the expressed terms give discretionary powers to an employer, an overarching obligation of good faith may impose a higher standard of fairness to be achieved by the employer. This good faith obligation may oblige the employer to take into account the interests of the other party in line with the parties’ agreed intentions when interpreting these other provisions and when using these discretionary powers. The UK legal system is regarded as being restrictive when interpreting a good faith provision when compared to European civil law.

It will be interesting to see how the law of good faith develops, as Ireland is now the only common law jurisdiction left in the EU, post Brexit.

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

29

BUSY REPORT SEASON FOR SCSI It has been a very busy three months on the report front for the SCSI, starting with the launch of the ‘Real Cost of New Housing Delivery’ in late July. The report found that the average cost of building a threebed semi in the greater Dublin area is €371K, an increase of €41K since the previous report was published in 2016. It found the rise was mainly due to an increase in hard costs, which made up 48% of the

n availing of competitive tendering to deliver key capital projects; n helping

local

authorities

to

rejuvenate our town centres; and, n investing

in

the

future

by

developing a construction tech hub.

total. In contrast to the private sector model, the cost of delivering a public sector house was estimated to be between €210K and €230K.

Key elements of the submission were

Micheál Mahon, then incoming SCSI President, pointed out that the

reported in The Sunday Times, Irish

housing crisis would not be resolved until the critical balance between

Independent and Irish Examiner.

affordability for consumers and viability for developers was addressed.

Micheál was interviewed on RTÉ Radio One’s Morning Ireland as well

Covid-19 has ‘sharp and immediate impact on tender activity and prices’

as Newstalk’s Breakfast Business – and led to meetings between the

The latest Tender Price Index, which was

SCSI and officials in the Department of An Taoiseach, as well as with

published by the SCSI in early October,

opposition spokespersons.

showed that construction price inflation slowed dramatically in the first

The report was widely covered in the print and broadcast media –

half of the year due to Covid-19. According to the Index – the only

Special Covid-19 Residential Report Once

the

property

market

independent assessment of commercial construction tender prices in Ireland – the national average inflation rate increased by just 0.9% in the first half of 2020, down from 2.8% in the second half

reopened in early June the Society

of last year. This brought the national annual rate of inflation down

was keen to gauge the impact of

to 3.8%.

Covid-19. In August it published

Speaking on RTÉ’s Morning Ireland, Micheál Mahon said Covid had had

its ‘Special Covid-19 Residential

a sharp and immediate impact on the level of tendering activity, and

Report’, which found that two

in turn tendering rates, as many construction firms focused attention

out of three estate agents

on securing projects for 2021.

believed property values had largely remained unchanged

SCSI PwC Ireland Construction Monitor

compared

Covid.

In the SCSI PwC Ireland Construction Monitor, surveyors warned

Almost three-quarters of

to

pre

of a challenging outlook for the construction sector due to Covid-19,

those surveyed said the level

but also pointed out that opportunities existed. Because of Covid,

of enquiries had remained

surveys were taken in February and June and the findings showed

the same, while 10% of property sales were

the sudden impact the virus had on the sector with sentiment

renegotiated due to Covid-19, with the average price reduction being

regarding activity levels, profit and outlook shifting dramatically from

3%. Vice President TJ Cronin said the survey showed the resilience of

positive to negative. Micheál Mahon said that while the sector had done

the market, but also warned that the outlook remained challenging.

well to weather the initial impact of Covid-19, the findings raised

The survey received strong coverage in the media and TJ was

serious concerns: “Because of the long-term nature of construction

interviewed on Newstalk’s Breakfast Business.

projects, the sector places a huge value on economic certainty and consumer confidence. Unfortunately, both have been badly hit by

Pre-Budget Submission 2021

Covid-19 and that is why it is so important that the Government

The SCSI’s Pre-Budget Submission was sent to both the Minister for

continues to invest in the strategic objectives as outlined in Project

Finance Paschal Donohoe TD and Minister for Public Expenditure and

Ireland 2040”.

Reform Michael McGrath TD in mid September. In his letter to both ministers, SCSI President Micheál Mahon pointed out the areas the

Sincere thanks

Society believes need to be prioritised:

The President, Micheál Mahon would like to thank everyone who contributes to the Society’s reports and surveys throughout the year:

n increasing the supply of affordable housing;

“Whether you are the Chair of a group, a member of a group, or a

n ensuring that the Government’s ambitious retrofitting plan has the

member who participates in a survey, we would like to thank you

resources to hit its targets;

30

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

sincerely for giving up your time and playing an active role”.

NEW SCSI MEMBERS On September 24, the formal election of successful APC trainees took place, confirming them as full professional members and Chartered Surveyors. The SCSI extends congratulations to all newly qualified Chartered Surveyors, and looks forward to all they will contribute to the Society and the profession in the future.

New Members: Robert Hefferon – Valuations Stevie Grehan – Valuations Matthew Finnegan – Valuations Paul Nalty – Commercial Seanna Gill – Commercial John Reynolds – Commercial David Mulcair – Commercial Megan Pilkington – Commercial Eoin O’Toole – Commercial Niall Crowley – Commercial Ciara O’Donnell – Commercial Robert Cruess Callaghan – Commercial Sophie Beattie – Commercial Rebecca Breen – Commercial Daniel Sweeney – Facilities management

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

31

MEET THE SCSI BOARD The SCSI recently welcomed two new members to its Board.

Paul Mooney, Treasurer

Kevin James, Second Vice President

Paul Mooney is a Chartered Surveyor with over 25 years’

Kevin is owner/Managing Director of Cogent

experience in property management. He is Head of

Associates

Commercial Asset Management at Cushman &

management and consultancy services.

Wakefield. Prior to that, he was Managing Director of

Prior to this, Kevin was Managing Director of Gardiner

Benchmark Property. He was author and lead researcher

& Theobald (Ireland) for eight years. With a career

specialising

in

project

and

cost

of the Housing Agency and Clúid report on owners’

spanning over 25 years, he has been involved in a

management companies. Paul was appointed to the board of the PSRA in

wide range of developments across all sectors. Some notable

2012, and re-appointed in January 2017. He is Chair of the Society’s PMFM

projects include: Adamstown SDZ; Cork School of Music PPP;

Professional Group and a member of the Finance Committee. He lectures on

Herberton Regeneration; Google EMEA HQ; and, Central Bank of

property management for the SCSI/Technical University Dublin. Paul has

Ireland HQ. Kevin is a past chairman of the Quantity Surveying

delivered a number of CPD lectures to industry, has contributed to The Irish

Professional Group and SCSI representative at the Construction Industry

Times and the Surveyors Journal, where he also serves on the Editorial Board.

Council (CIC).

OBITUARY – KEN CRIBBIN Ken Cribbin was a proud Chartered Quantity Surveyor and

After a couple of years in Israel, Ken returned to Dublin to the role of

dedicated a lot of time to the Society over a period of 20

Managing Director of Linesight Project Management. He reorganised the

years, serving as Chair of the Junior Organisation, the 25

business and grew it from approximately 15 project managers to almost 100

Club, and the Quantity Surveying Division, before being

throughout Europe today. Then in 2018, we asked Ken to take on the role of

elected President in 2009, a role he carried out with

Chief Operations Officer. Ken researched this role and made it his own,

dedication and distinction.

travelling to London, New York, San Francisco, Dubai and Mumbai to connect

Ken started his professional career with Brendan Merry & Partners and

with our teams.

worked there from 1986 to 2012. During this time, he gained a reputation as

Ken was a very hard worker but he was also a very social person and loved

an expert in healthcare and educational facilities in particular, but more

to mingle, whether at internal functions like our Summer BBQ or at client

importantly as someone who was professional, honest and truthful, and could

functions. He was a great lover of sports, particularly rugby and golf.

be relied upon in a crisis.

The outpouring of grief and sympathy throughout the construction industry,

In 2012, Ken mentioned that he was considering a change and would like to

both at home and abroad, at the tragic news of Ken’s passing has been truly

manage a major project overseas. When Linesight got an opportunity to

amazing. He was respected and loved by his colleagues, peers, clients,

manage a major project in Israel, I asked Ken if he would be interested.

contractors, consultants and everyone he came across.

He agreed to become our Israeli Commercial Director, despite never having been to the country. This was very typical of Ken. He loved a challenge and

Derry Scully

nothing fazed him.

Group President, Linesight

FOUR NEW SCSI FELLOWSHIPS ANNOUNCED The Society of Chartered Surveyors Ireland has awarded four

n Aidan O’Connor, Limerick Institute of Technology – Quantity Surveyor

new Fellowships to members who have achieved distinction in

n Eugen Niculae, Technological University Dublin – Geomatics

the profession, and are active members of the SCSI. The new

The Society Fellowship grade of membership represents a prestigious

Fellows are:

award that reflects the career achievements of a special group of property and construction professionals. Attaining the Society of

n Norman Jackson, Housing Agency – Quantity Surveyor

Chartered Surveyors Ireland Fellowship is a true mark of distinction.

n Lily Ellis, JLL – PMFM

The SCSI extends its congratulations to these new Fellows.

32

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

KEEPING THE SHOW ON THE ROAD ENGINEERING OFFICER DANIEL SWEENEY WITH HIS TEAM AND COLLEAGUES IN HSE ESTATES HAVE BEEN WORKING HARD TO KEEP HEALTHCARE FACILITIES SAFE AND OPERATIONAL DURING THE PANDEMIC.

B

ased in Cherry Orchard Hospital

manner that would protect HSE staff and service

in Dublin, Daniel and his team

users was my first priority. This required a

are responsible for providing a

review of how we deliver essential maintenance

range of maintenance and facility needs to over

services at premises providing healthcare”.

300 premises throughout Kildare, Wicklow and

Patient safety is, of course, paramount: “One of

South Dublin: “A typical day begins with

the biggest challenges for us in the early stages

reviewing emails in the office at 8.00am followed

was creating ways of working that adhered to

by linking in with regional maintenance

infection prevention and control guidelines.

managers, technical staff and the admin team.

We had to re-evaluate and risk assess

My role is both site and office based so I travel to

completion of even routine tasks and change the

monitor sites and to meet my team members

way we schedule and manage contracted

Family man

and HSE colleagues”.

services or external suppliers. This was carried

Daniel lives in Naas, Co. Kildare, with his

Daniel manages more than 80 staff, including

out in collaboration with HSE clinicians and

wife Noreen, who he says is incredibly

maintenance managers, tradesmen, skilled

service managers to ensure that any essential

supportive, particularly during times similar

operatives, administration, supplies, technical

works could be carried out with patient care and

to the last few months, and his three

support, and works alongside his HSE Estates

safety front and centre of all tasks”.

daughters. In his spare time, he enjoys

colleagues delivering project, property, and

As the months have gone by, the Estates team is

motor racing, rock music (he plays guitar)

facility management. He is also responsible for

extremely busy reconfiguring space and

and GAA, and is delighted that his three

contracts in relation to planned preventive

managing fit-outs such as the Citywest facility,

daughters each share one of his passions.

maintenance (PPM) and statutory compliance,

all while working with limited resources:

which entails managing a large number of

“The number one priority is continuation of

There has to be clear interaction between the

external contractors and suppliers.

healthcare. The challenge facing our particular

clinical professionals, building occupiers and

department is identifying capacity within, and the

construction professionals in facilities and sites,

Adapting to change

augmenting of, existing facilities to provide an

a greater understanding of the priorities, with

Of course, a lot has changed since the arrival of

environment where healthcare professionals

that knowledge base we now have”.

Covid-19, and Daniel and his team, as frontline

can carry out their work as safely as possible”.

Daniel is full of praise for his maintenance team,

workers, had to adapt: “Ensuring staff could

Nowadays we are living in ‘the new normal’:

who he says have been fantastic throughout:

attend work safely, and carry out tasks in a

“It’s certainly not getting any easier but we’re

“My team and Estates colleagues have been

learning more, we’re adapting more effectively,

putting

SURVEYOR PROFILE

and operationally we’re in a better place because

tradesmen and general operatives continue to

we know what we have to do, and how to do it.

be on call constantly, coming in at all hours to do

Ann-Marie Hardiman Managing Editor, Think Media

Covid-19 has changed the way we deliver our

anything they can to help – they’re a great team

services, possibly forever more. It’s not just

with vast healthcare facility experience, and the

about turning up and getting the work done.

lifeblood of the maintenance department”.

in

relentlessly

long

hours,

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

our

33

THE REAL COST OF NEW HOUSING THE SCSI’S ‘REAL COST OF NEW HOUSE DELIVERY’ 2020 ANALYSES AND EVALUATES REAL MARKET DATA ON 30 LIVE PRIVATE RESIDENTIAL DEVELOPMENT SITES IN THE GREATER DUBLIN AREA.

Delivery versus affordability Four years on from the SCSI’s first housing delivery cost report, affordability remains a fundamental issue. The working group

Average cost of delivering a three-bedroom semi-detached property in:

compiled a case study based on an average salary in Dublin and lending capacity based on Central Bank rules. The results depict an affordability gap of €34,000 for first time buyers.

The working group examined potential measures and the

2016

2020

€330,493

€371,311

12%

results if certain measures were adopted: Cost reduction Reduction in finance costs from 9% to 5%

-€10,000

Development levies and Irish Water connection charges reduced by 30% -€5,000 -€23,500

If these measures were to be implemented, the delivery cost

7%

Hard costs 2020: 52%

€192,409

19%

Since 2016

-€8,500

Total reduction

€178,902 Since 2016

10% reduction in land prices

Soft costs 2020: 48%

achieved would be €347,500, which would effectively close the affordability gap for the average first time buyer.

Outlook for the sector Delivery of housing remains a challenging task where viability

Hard costs: bricks and mortar, external works and site development works.

and affordability need to be equally balanced. Key areas have been identified where cost reductions could be achieved such

Soft costs: professional fees, local authority

as reduction in land costs, finance costs, and the cumulative

contributions/development

impact on lower VAT charges as a result. It is clear, however,

acquisition, sales and marketing, finance,

that there is no one solution and a number of measures are

developer’s margin and Value Added Tax.

levies,

land

required to address an obvious viability and affordability issue.

Covid-19 has also brought costs to the sector and this is not

Generally the increases in the delivery cost can be

factored in the Report.

categorised into general labour and material inflation and compliance costs associated with

THE LAST WORD Kevin Brady Director, Andrew P Nugent & Associates

34

SURVEYORS JOURNAL Volume 10, Issue 3, Autumn 2020

regulatory changes in standards.

The report solely addresses the costs of delivering a three-bedroom semi-detached property, and does not capture costs associated with abnormal site conditions or Covid-19. The full report is available at www.scsi.ie.