Surveyors Journal Winter 2018

surveyors JournAl v o lu m e 8 i s s u e 4 w i n t e r 2 0 1 8

house of CArds

Also in this issue sCsi AnnuAl ConferenCe GreAt plACe to work sinkinG funds

news

Contents

president’s messAGe

feAture

editoriAl

interview the lAst word

ConferenCe

4

n Editorial

5

n Business news

6

n How to be great

12

n House of cards

16

n State of dilapidation

18

n Ready to fly

20

n Waterford is waiting

22

n That sinking feeling

24

n Conference report

26

n Society news

28

n Surveyor profile

33

n The last word

34

surveyor profile

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

Tel: Email: Web:

n President's message

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

Áine Myler, Director General

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 DIT John Costello Costello Commercial Tom Cullen Think Media Brian Gilson Lisney Ann-Marie Hardiman Think Media Frank Harrington Smith Harrington Patrick King SCSI Paul Mooney Benchmark Property Paul O'Grady Think Media Rowena Quinn Hunters Andrew Ramsey McGovern Surveyors Sarah Sherlock Murphy Surveys Paddy Shine Dublin City Council Claire Solon Friends First John Vaudin WK Nowlan Real Estate Advisors

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 8, Issue 4, Winter 2018

3

CreAtinG A Culture of ConneCtivity PROFESSIONAL COLLABORATION AND SuPPORT HAS ALWAyS BEEN VITAL FOR SuRVEyORS, AND IS KEy IN ADDRESSING THE CHALLENGES TO COME.

t

he autumn has been busy as reported by many construction and property members during my travels around the country, including a trip to Belfast to meet some of our RICS colleagues, where the impact of Brexit was the main topic of discussion. I have also had the pleasure of meeting members at the

National Conference in Kilkenny and our other networking events.

As President, Board member, and member and Chair of Education in the SCSI for many years, I have gained a great appreciation for the connected benefits of membership of an organisation that is home to a range of professional disciplines. The importance of connectivity has grown over the years. We face challenging times politically and professionally, and we can’t deny that these challenges take their toll not only on our personal lives, but also on the everyday culture of our organisations. Together we face multiple challenges, be it the urban/rural balance, leadership and purpose in family businesses, or perhaps most common: the challenges of building resilience in our organisations in light of Brexit. As the saying goes, united we stand, divided we fall. In order to overcome the challenges ahead, we must ensure that we have the best teams working with a unified sense of purpose. you might hear a lot about workplace culture in your own interaction with employers and businesses. It has cropped up many times at our events, be it the PMFM Conference in October, or the National Conference in November (see page 26). The equation is simple: positive, people-focused workplaces attract the best talent, promote engagement, maintain happiness, and lead to better and more sustainable businesses. It is even more important in our profession, where you have multiple stakeholders and mindsets working together to achieve a complex common goal.

Focus on the regions A fantastic example of this has been our project entitled ‘Rejuvenation of Our Small Town Centres’ (page 26). The success of this project was dependent on collaboration between surveyors from every discipline, across every region, on an issue that is impacting our regional communities. But it won’t just end there. We cannot put too much value or emphasis on the importance of our regional communities and their importance to the health of Ireland as a whole.

We look forward to further engagement with stakeholders in the new year to ensure that our recommendations are heard.

As we look ahead to the new year, we look forward to strengthening the bonds of connection across our membership, which starts with welcoming you all to our Annual Dinner in Dublin, on January 31. The tone will be set for a year of continued connectivity and collaboration between members for the year ahead. I would like to thank you all for your support and contribution throughout the year and wish you a merry Christmas and a very happy new year.

president’s messAGe

STAYING CONNECTED Surveyors must continue to work together to promote the profession and

Des O’Broin President

4

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

rejuvenate our rural communities.

GettinG it riGht

Rejuvenating Ireland’s small town centres SCSI Report, November 2018

WE NEED TO PLAN FOR uRBANISED POPuLATIONS.

l

25% 54% ike many countries Ireland is urbanising, with more and more people expected to live in cities in future. In a series looking at urban areas in Ireland, this winter edition of the Surveyors Journal focuses on Waterford

(page 22). Growing successful urban areas requires imagination and Waterford is planning one of the most significant developments in its history. The plan to redevelop

Online weekly shopping is on the rise, with Ireland set to follow international trajectories.1

the long-neglected north quays with a pedestrian bridge certainly looks exciting. Like in many cities in Ireland, a concern for companies from abroad contemplating

1966

investment in Waterford is housing for staff, and I was interested to hear from Des Purcell that there is a strong first-time buyer element to demand but with limited

1 SHOPPING CENTRE

supply. Internationally, the trend is towards walkable, compact cities, easily navigable by bikes and public transport, and the plan for the north quays should allow for this and play a part in providing the interesting urban spaces demanded by many of those who work in high-value industries.

I was interested to read John Slevin’s piece on the Construction Contracts Act 2013 (page 16) where he notes the differences between legislation here and in the uK. John says that certain aspects of this Act need to be treated with caution and he makes his case very well. I am sure all construction professionals should read this piece with particular interest.

The management of multi-unit developments (MuDs) is an area where many problems exist and where the Society has made a significant contribution by highlighting issues and pointing to solutions. In their article (page 24), Finbar McDonnell and Kevin Hollingsworth point out that an MuD needs a good sinking fund and note that most

2012

212

SHOPPING CENTRES

have established one. Worryingly, however, a very large majority of agents report that less than a quarter of these funds are adequate. As noted above, the future is urban

Ireland’s first shopping centre opened in 1966. There is now

and many more people will live in MuDs. It is imperative that they are well managed

1.98 million square metres of shopping centre floorspace.2

and don’t deteriorate. Sinking funds are of critical importance to the future of MuDs and to ensuring that the value of apartments is sustained in future.

We have to get the management of MuDs right in the interest of creating those interesting urban areas that will attract workers.

editoriAl Tom Dunne Editor

Source: PWC Retail Consumer Report 2018.1 Irish Shopping Centres and Retail Parks, DTZ/Sherry FitzGerald 2013.2

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

5

new direCtor At vAl o’Brien

BuildinG ConsultAnCy on the menu

FINE DINING The Building Consultancy has been appointed designer and project manager for 1925 restaurant.

APPOINTED Ronan Harlin (left) is congratulated by Val O’Brien on his appointment.

The Building Consultancy has been appointed designer and project manager

Val O’Brien of Val O’Brien and Associates has announced that Ronan Harlin,

for a new restaurant at unit 1, 13-18 City Quay. Situated under Grant

who has been with the practice for over 18 years, has been appointed as a

Thornton’s recently opened headquarters, the 1925 restaurant is due to open

director within the company. In welcoming his appointment, Val cited Ronan’s

in the first quarter of 2019. Director Karl O’Donovan commented: “We are

outstanding commitment and knowledge. The company is also celebrating

delighted to be a part of this project. The docklands area has seen a

21 years in private practice this year, and Val says that he is delighted to have

significant increase in the number and range of dining establishments. We

staff with this depth of knowledge and experience available to their broad

expect the 1925 restaurant to further enhance this and contribute to the

client base.

continued development of the IFSC as a vibrant dining location for the city”.

6

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

Good news on JApAnese knotweed Ecologists from AECOM and the university of Leeds have carried out the

He added that the 7m rule, although based on the best

most extensive research to date assessing the potential of Japanese

information previously available, was not a statistically robust tool

knotweed (Fallopia japonica) to cause structural damage compared to

for estimating how far the plant’s rhizomes are likely to reach

other plants.

underground.

Now recognised as one of the most problematic weeds in the uK and

Co-author Dr Karen Bacon, from the university of Leeds’ School of

Ireland, Japanese knotweed is known to have a range of negative

Geography, said: “This plant poses less of a risk to buildings and other

environmental impacts. In the uK, it is widely believed to pose a

structures than many woody species, particularly trees. Japanese

significant risk of damage to buildings that are within 7m of the above-

knotweed is capable of damaging built structures, but where this occurs,

ground portions of the plant – the so-called ‘7m rule’ – due to its

it is usually because an existing weakness or defect has been

underground shoots, known as rhizomes.

exacerbated”.

When identified in homebuyers’ surveys, mortgage lenders often require

Professor Max Wade, Technical Director – Ecology at AECOM, and co-

evidence that a treatment programme is in place, entailing significant

author of the paper, said: “We hope our research will inform discussions

expense for sellers. The stigma associated with the plant means that

around the advice currently offered about Japanese knotweed by

property values can be affected, even after action is taken.

providing more information about the reality of its impact on built

Dr Mark Fennell, Principal Ecologist at AECOM, who led the research,

structures”.

said: “We found nothing to suggest that Japanese knotweed causes

The researchers also found no support in the literature for the idea that

significant damage to buildings – even when it is growing in close

Japanese knotweed is a major cause of damage to property and, overall,

proximity – and certainly no more damage than other species that are

established that it was less likely to cause damage than many other

not subject to such strict lending policies”.

common species.

8

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

mAlColm hollis welComes lAurA Johnston Building consultancy firm Malcolm Hollis has appointed

very excited about this new opportunity. Malcolm Hollis

Laura Johnston as a senior quantity surveyor in its

is a wonderful firm, and I’m thrilled to be working with

Belfast office. The company states that Laura brings a

the team”.

wealth of experience to the firm, with specialist

Adrian Poucher, Belfast partner at Malcolm Hollis, said:

knowledge of service areas such as cost reduction, cost

“We are pleased to welcome Laura Johnston to Malcolm

control, cost management, development monitoring

Hollis. She is a fantastic candidate, and I am sure her

and building information modelling (BIM). Laura

expertise in quantity surveying will prove invaluable in

graduated from ulster university with a bachelor’s

our Belfast office. I look forward to seeing the positive

degree in quantity surveying. Laura commented: “I am

contributions she will make to our business”.

new md of CBre irelAnd CBRE has appointed Myles Clarke as Managing Director of its Ireland

at the end of this year to take on a consultancy role within the business.

business. He will join CBRE in mid November, having been Chief

Ciaran Bird, Managing Director of CBRE uK and Ireland, said: “Myles will

Operating Officer of RBS Investment Bank in London. Since leaving RBS

be an excellent addition to our Ireland team. His impressive track record

in 2016, Myles relocated to Ireland and took a sabbatical to focus on

in leading high-performing teams and his wealth of expertise in finance,

several projects of personal interest in the areas of finance, real estate

property and technology insights, means he is ideally placed to spearhead

and blockchain technology.

the growth and development of our Ireland business. I would also like to

Myles will succeed Enda Luddy, who will be stepping down from the role

thank Enda for his valuable contribution to CBRE over the past six years”.

10

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

how to Be GreAt JOHN RyAN, CEO OF GREAT PLACE TO WORK IRELAND, WANTS TO BANISH THAT SuNDAy EVENING DREAD FOR ALL OF uS.

A

“

work placement with the then Dublin Gas during his business degree at DCu

taught John Ryan a huge amount about the importance of brands: “They rebranded to Bord Gáis and went from ‘Sorry: Dublin Gas’, to the famous three little bears and school kids singing the ‘50:50 cashback’ song. It was amazing to see how you can turn a brand around, and change the customer experience overnight”.

Now, as CEO of Great Place to Work Ireland, John wants Irish organisations to understand that their workplace needs to be a place that their employees look forward to coming to and their employer brand has to communicate that if they want to attract talent.

John says that any organisation of any size in any industry can be great, and Great Place to Work interacts with over 350 organisations every year, helping them to identify the key areas where they need to change to gain the trust that he says is key to becoming a great place to work: “Our assessment covers nine key practice areas [see panel]. It’s a framework that you work to: a working definition of a great place to work from an organisational perspective as one where you achieve your organisational objectives, where people give their personal best, and work together as a team”.

interview Ann-Marie Hardiman Managing Editor, Think Media

12

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

CArinG for the heAlth And well-BeinG of your employees hAs to Be ABout more thAn hAvinG A wellness dAy onCe A yeAr

Great Place to Work began in the uS in the 1980s and since then has spread its message across 58 countries. Its model offers a ninepoint framework across three practice areas that it says will help companies to achieve their organisational objectives, in a group of people who are able to give their personal best, while working together as a team or family:

Listening Being accessible for questions, suggestions,

Know thyself

certification from Ireland, which will go global,

and concerns.

The nine practice areas boil down to some very

called Healthy Place to Work: “It’s a holistic view

Speaking

practical things that organisations can do to

of what health actually is, and it’s all about

Providing

create that culture of trust. One of the most

purpose, meaning, learning and development,

information, empowering teams.

important is identifying what the culture of your

self-efficacy,

Inspiring

organisation is, and feeding that into how you

connections, along with the physical health

Showing how everyone contributes to the

choose team members: “We say be unique –

aspects we are all familiar with. Organisations

wider mission.

don’t be generic. Stop recruiting people just for

can support employees to be holistically

the skill set to do the job, because that should

healthier and they will reap the benefits – it’s

Thanking

be a given. Be honest and authentic about who

the ultimate win-win”.

Showing appreciation for good work in

job

crafting,

and

social

honest

and

transparent

regular and unique ways.

you are and hire people who will survive and thrive in that environment”.

Be radical

Caring

Once you’ve worked through what your objectives

Some of the things companies are doing may

Offering distinctive benefits that respond to

are as an organisation, communicating them to

seem pretty radical to organisations that

the needs of your team.

employees and showing them how they connect

haven’t embraced this process. Replacing

Developing

to those objectives, is vital: “It doesn't matter

annual appraisals with ‘30:30’ (30 minutes of

Helping employees to nurture their personal

what my role is, show me where it connects to

focused – and mutual – feedback every 30

and professional gifts.

the organisation's purpose so that I get a sense

days), or allowing prospective employees to

of purpose and meaning in what I'm doing”.

interview different team managers to decide

Hiring

The flipside of this is listening: “Do you know

what team they want to work with, may seem

Hiring people with the talents to contribute

what people are thinking, feeling and believing

huge – and intimidating – changes, but John

to the right culture.

about the organisation? What are the biggest

says it’s practices like this that make the

Celebrating

frustrations they're finding with trying to get the

difference: “your relationship with your

Taking time to celebrate wins in distinctive,

job done?”

manager is absolutely critical”.

creative ways.

Buzzwords like inclusion and wellness are very

It’s about helping managers to be better too:

Sharing

much on the radar for most companies these

“People say ‘people don't leave organisations,

Rewarding efforts of all those who play a part

days, but John says that doesn’t mean we’re

they leave managers’, and that's kind of true,

in delivering results.

getting it right: “Inclusion is about bringing

but if we dig a little deeper we find that those

people into the decision-making process and

managers aren't set up for success; we haven't

us might find it terrifying: “We assume it would

giving them a voice, whereas Irish organisations

given them the necessary skills”.

be negative; we never think we’re as good as

still tend to make decisions and then tell people

What John calls “radical transparency” is

we are”.

to implement the decision”.

another area that might seem daunting to say

It all comes back to trust: “We talk about

He says caring for the health and well-being of

the least. From Spotify, who put all staff

engagement, but an employee’s engagement

your employees has to be about more than

appraisals (including the CEO’s) on their

with their job can go up and down on any given

having a wellness day once a year: “There is no

company intranet for all to see, to project

day. Trust is a much more enduring concept.

evidence to back up any improvement in

teams

other’s

Our nine practice areas feed into the creation

performance by doing that sort of thing. Health

performance,

transparency

of a great workplace and a great workplace is

and well-being can be a huge driver of

throughout an organisation, it’s clear that there

one where you trust the people you work for,

performance, but it needs to be strategic”.

is a huge cultural shift happening, but John

you’ve a sense of pride in what you do and you

To address this, John is launching a brand new

says it’s all to the good, even if some of

enjoy the people you work with”.

openly

scoring or

salary

each

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

13

The method Great Place to Work uses its established methodology of survey, reporting, discussion and analysis to work with organisations, and at the end of the process, those that reach a minimum standard gain Great Place to Work certification.

Organisations may be daunted at the prospect of ‘competing’ against multinationals and much larger companies, but John says that’s not how it works: “We assess all organisations around our nine practice areas, but organisations are benchmarked against those of a similar size so

This is something construction and property

Community spirit

that comparisons are appropriate. It’s not about

professionals understand all too well in other

John lives in Bray, Co. Wicklow, with his wife

perfection; for example, in our employee survey,

areas of their work, where regulations and

Kelly and three children. He loves golf and

if 70% of people believe the organisation is high

standards for safety and work practices are core

football (he’s an Arsenal fan). He also has a

trust, that will meet the criteria”.

elements of what they do: “This is the best

passion for current affairs and was mayor of

It’s a methodology that measures the whole

framework you’ll ever implement, because it

his local town. John is a county councillor

organisation: “It used to be the case that if the

impacts on more people, helping to create a

and was recently Cathaoirleach of Wicklow

organisation as a whole got a certain score they

psychologically and emotionally healthy place to

County Council.

could be considered a great place to work. Now, if

work, as well as a safe place to work”.

the experience of the executive team versus

For SCSI members, the philosophy behind Great

So the physical design is hugely important”.

everybody else is sizably different it's not great; if

Place to Work also has some practical

So are Irish organisations taking on the message

the experience of women versus men, or people

implications in terms of the services they provide

that creating the right working environment

from different ethnic origins versus everybody

to clients. The physical environment of the

increases efficiency and productivity, and gives a

else is significantly different, it's not great”.

workplace is a huge part of what makes us want

competitive advantage? John says absolutely:

As recruitment of skilled personnel becomes an

to come to work in the morning, and property and

“Irish organisations are doing brilliantly. The

issue in many sectors, John says Great Place to

construction professionals are closely involved in

presence of so many international companies has

Work certification “100%” gives employers an

creating and managing those physical spaces for

forced indigenous companies to raise the bar.

advantage: “We know from studying organisations

their clients: “We worked with an organisation that

Irish companies are competing for staff and have

across 58 countries for 40 years that the ones who

put barcodes on everybody’s lanyards because

to up their game, so we’re doing better than many

have this employee experience that is high trust

they wanted to see who was colliding with whom.

other European countries. We are perceived as

are the ones that are winning in the marketplace”.

And they found that everybody from sales was

high trust, and as more inclusive too”.

colliding with everybody from sales, everybody

This reputation in turn has a knock-on effect,

Closer to home

from operations with everybody from operations,

attracting more foreign direct investment (FDI)

In the property and construction sector, John says

etc. They were getting no innovation across the

and better employees, and John is delighted to

that many organisations still need to get the

organisation, and what they found was that the

have been a part of some of this success: “For me,

fundamentals in place to understand what makes

physical design of the organisation wasn't driving

10 years on, I’m thrilled that it’s not only the great

a great workplace: “It’s not a nice fluffy thing on

the behaviours that they wanted. So they have

organisations that knock on our door; over 50% of

the side for staff – it’s core to organisational

streets built into the organisation, and the streets

the organisations that deal with us are a long way

performance”.

are where the coffee and the food is, and that’s

away from being great, but they have started on

He reiterates his point that this is a framework for

where everybody happens to come. So now we're

their journey to get better and we help them every

organisations to use to achieve their objectives.

mixing up the organisation and it’s not all siloed.

step of the way”.

14

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

house of CArds CERTAIN ASPECTS OF THE CONSTRuCTION CONTRACTS ACT 2013 NEED TO BE TREATED WITH CAuTION.

t

he Construction Contracts Act 2013 (“the Act”) applies to

Contractor shall pay to the NN Sub-Contractor the full amount claimed

certain construction contracts entered into after July 25,

in the NN Sub-Contractor’s Payment Claim without any deduction other

2016. However, construction professionals need to be aware

than Retention (if not already allowed for in the Payment Claim)”.

that certain aspects of this legislation need to be treated with caution.

Right to suspend the works

Failure to respond to a payment claim notice

The Act provides for an entitlement to suspend work in two situations.

unlike the equivalent English and Welsh legislation, the Act does not

First, under sub-section 5(1): “Where any amount due under a

expressly state that the amount claimed in a payment claim notice shall

construction contract is not paid in full by the day on which the amount

become payable if no response to the notice is issued by the other party.

is due”.

Nor does the Act set out the consequences of a failure on the part of the

This arises if no sum is paid on the due date or if a certified sum that

paying party to deliver a response within the required time. Instead, the

became due for payment is not paid. This right of suspension could

Act is silent on what is to happen in these circumstances.

arguably also arise where a payment claim notice is served, no response

Legislation in the uK provides that the claimed amount is due for

is given in accordance with the Act, and a sum less than the sum claimed

payment where the paying party fails to serve the required notice. But

is paid on the due date. However, in order to circumvent this suspension,

the Irish Act does not say that the amount claimed becomes due if the

if the other party refers the payment dispute to adjudication the

paying party fails to respond. under standard forms of contract, the

contractor must resume work [s.5(3)].

amount due is calculated by reference to the value of the work and in

A party can also, pursuant to section seven of the Act, suspend the works

default the schedule to the Act contains a similar provision.

if the other party fails to make payment of a sum due under an

It is advisable to ensure that construction contracts address this gap in

adjudicator’s decision. However, in such circumstances, if the other

the legislation. For example sub-clause 11(c)(2) of the ‘Agreement and

party refers the dispute to arbitration the contractor must resume

Conditions of Sub-contract (NN)’, second edition, issued by the

work [s.7(3)]. In reality it could take many months or years for an

Construction Industry Federation (CIF) for use with public works

arbitration to reach the hearing stage, while in the meantime the

contracts states: “If the Contractor does not issue a response to a NN

contractor’s cash flow will be negatively affected and they will also be

Sub-Contractor’s Payment Claim in accordance with Clause 11(c)(1) the

incurring legal costs.

feAture John Slevin Chartered Surveyor and barrister, and principal of Slevin Consulting.

16

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

“

one of the most effeCtive wAys of enforCinG pAyment is to suspend the works. this Also proteCts the ContrACtor from the risk of further loss if in fACt the pAyinG pArty is insolvent.

Different treatment of sub-contractors and contractors

In theory this could cause some difficulty for main

ways of enforcing payment is to suspend the works. Suspending the works also protects the

Sub-section 3(3) of the Act states: “The Schedule

terms of the main contract may provide for the

contractor from the risk of further loss if in fact

shall apply to a main contract if and to the extent

first payment being made on a valuation carried

the paying party is insolvent. The other party, if

that it does not make provision for the matters

out, say, 60 days (or more) after commencement,

unable or unwilling to pay, can simply avail of

specified in subsections (1) and (2)”.

with payment thereafter at regular intervals. As is

these provisions and defer payment, without

Sub-section 3(4) of the Act states

often the case if the majority of the work is being

risking suspension.

that the schedule shall apply to a

carried out by sub-contractors, and if they are

The question then arises as to whether clauses in

sub-contract unless the terms

entitled to payment on a valuation carried out 30

construction contracts allowing a party to suspend

of the sub-contract itself are

days after commencement, the main contractor

work where a sum due under the contract has not

more favourable to the sub-

been paid must be read as incorporating a

contractor. The schedule

provision requiring the suspension to be

provides for payment, at

withdrawn in the event of notice of adjudication

the latest, every 30 days.

It will be well known that one of the most effective

contractors. It is possible, for example, that the

has a problem.

being served or referral of the decision of the

adjudicator to arbitration or litigation. One would presume they are to be so read unless the

contract says otherwise and, if the contract says otherwise, that may be regarded as an attempt to limit or exclude the application of the Act and therefore be contrary to subsection 2(5) of the Act. It is worth stating section 2(5) of the Act: “This Act applies to a construction contract whether or not – (a) the law of the State is otherwise the applicable law in relation to the construction contract, or (b) the parties to the construction contract purport to limit or exclude its application”.

A further risk is that a party who suspends under the Irish Act is at risk of being found liable for damages if it transpires that there was no sum properly due under the contract at the time the suspension occurred. This is because, depending on the circumstances, under the Act the sum claimed through a payment claim notice is arguably not necessarily due and may be found in adjudication not to be due, notwithstanding that no response notice has been given.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

17

stAte of dilApidAtion INTERIM SCHEDuLES OF DILAPIDATION IN A RISING MARKET HAVE BENEFITS FOR BOTH LANDLORD AND TENANT IN A COMMERCIAL LEASE.

i

n 15 years of producing schedules

requirement to comply with

of dilapidation, I’ve found that

the lease exists throughout

the receipt of terminal schedule

the term and, as such, a

has usually come as a surprise to a tenant.

tenant or landlord can be put

This shouldn’t really be the case as a lease

on notice and requested to

outlining the terms and conditions of the

deliver compliance at any time.

letting is entered into by all parties. There

Over the last two years there

should be a clear understanding of the

has been an increase in the

obligations (landlord and tenant) relating to

number of interim schedules

a property rented under a commercial

served, putting landlords/

lease (rent payment, statutory compliance,

tenants on notice to perform

repair, etc.). While there is no legal obligation

during the term of the lease.

on a landlord to produce a schedule of dilapidations, it is the responsibility of both parties to ensure that they comply with their own requirements under a lease. It has become common practice.

A schedule of dilapidations is produced based on certain lease clauses, and outlines one party’s interpretation of what is required to deliver compliance with the lease. The

feAture Andrew Ramsey Director at McGovern Surveyors

18

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

in A risinG mArket, CommerCiAl property is no lonGer seen As Just A rentAl vAlue. if this view is tAken, the property will soon fAll Behind the rest of the mArket.

Term policing

is difficult to substantiate and a landlord must

cases positive feedback has been received from

In a rising market, commercial property is no

mitigate their loss; capital expenditure is

the building user who, as a result of company

longer seen as just a rental value. If this view is

inevitable. An interim schedule of dilapidation

protocol, is not in a position to complete

taken, the property will soon fall behind the rest

can assist in maintaining asset value and keep a

operations

of the market (in terms of quality). This is

property in a lettable condition.

expenditure (capex) unless there is an official

particularly relevant with the increase in break

Interim dilapidations will usually deal with

request to do so. An interim schedule assists in

provisions within leases (5-10-15 year breaks),

specific breaches likely to cause a diminution in

firmly and formally advising a party to the lease

along with an on-stream supply of new and

the property value or a threat to health and

of their obligations.

refurbished space.

safety. An interim schedule will not usually

What we have also identified is that tenants are

If a tenant vacates and a property is not ready for

contain costs against listed breaches, as the

likely to complete more work than they are

the market, there will be a void period with zero

intention is to implement work rather than claim

actually obliged to do under the terms of the

rent, along with landlord capital expenditure,

damages.

lease because they are going to get the benefit

before a new occupier is found – and don’t forget

From experience, a visit during the term by the

of the work during the remainder of the term.

about

period.

landlord’s building surveyor often instigates a

This reduces the end-of-term dilapidations

Consequential loss within a dilapidations claim

programme of work by a tenant. In a number of

argument of repair versus improvement.

the

obligatory

rent-free

expenditure

(opex)/capital

Asset protection and cost reduction

Tactical protection

From a review of in-house dilapidations data, it is clear that

There are also a number of tactical reasons why a landlord

there are a number of common breaches under most

might wish to issue an interim schedule or have early

terminal dilapidation claims. If repair/maintenance had been

discussions with a tenant. Where a break option is

completed earlier, the end-of-term argument and cost

approaching and the tenant could actually leave, it may

exposure would have been significantly reduced, if not

persuade them not to if the interim schedule shows that they

removed altogether: a win-win for all parties.

will be encumbered with a large capital cost. As part of issuing

For example, early repair to a roof covering can increase its

the schedule, the landlord may need to identify what work

serviceable life and reduce cost exposure. This is particularly

they would accept as being completed over a phased basis, to

true in the case of cut edge corrosion, with cost variation of

ease the burden.

€40-€55 per metre, subject to the level of deterioration.

An interim schedule can also be utilised to formalise

Fire compartmentation and detection is also very important

paperwork and ensure that correct standards are achieved,

in a property; however, there are still buildings with no fire

especially where a tenant has completed alterations without

detection. under the terms of a standard lease a tenant only

obtaining landlord approval, or where work was carried out

needs to comply with statute while in occupation. If an interim

to an inappropriate standard. Poorly completed work could

schedule is issued, they would be obliged under the lease to

have a negative impact on the building, or on other tenants in

comply with statute and install a fire alarm. This would not be

a multi-tenanted building. There is also a concern that work

the case at term end. We need to be mindful, however, of

completed without full consideration could impact negatively

reinstatement, as the tenant can legally take the alarm

on the building insurance.

system with them at term end subject to the wording of the

An interim dilapidation schedule presents a controlled

yielding up clause.

opportunity to reaffirm the requirements under the terms of

Section 65 of the Landlord and Tenant Amendment Act 1980

the lease. It allows time and options for all parties to complete

restricts a terminal dilapidation to the actual value of the

work under their control or to put in place deeds of variation

landlord’s reversionary interest in the premises and is a claim

to provide clarity on lease interpretation. This could assist in

cap. This piece of legislation cannot be relied upon under an

reducing end-of-term arguments and lengthy legal disputes

interim situation, as there is no claim for loss, simply a

where communication may have broken down and a financial

notification of required work under the terms of the lease.

settlement is the only option.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

19

reAdy to fly DuBLIN AIRPORT uSED OFFSITE CONSTRuCTION TO ExPAND ITS PASSENGER BOARDING FACILITIES AND COMPLETE ONE OF THE FASTEST PROJECTS EVER uNDERTAKEN AT THE AIRPORT.

t

here has been a surge in interest in offsite construction to support airport expansion as operators

look for more innovative solutions to build new world-class facilities. The benefits of modular solutions are proven: reduced work on highly

passengers using the airport in the past year.

constructed offsite by The McAvoy Group to reduce

constrained, secure sites; shorter programmes;

South Gates is a new €22 million passenger

the programme for earlier occupation in order to

less disruption to airport operations; and, greater

boarding facility that has been developed to meet

meet the rising demand for flights from the

certainty of delivery on time and on budget.

this huge growth in numbers. The building was

airport. The new facility was manufactured at the

Dublin Airport is one of the fastest growing airports

designed to be used mainly by Aer Lingus for flights

Group’s offsite production centre in Lisburn,

in Europe. It has experienced a 6% increase in

to the uK and continental Europe. It provides seven

Northern Ireland, and was craned into position in

passenger numbers, with a record 29.6 million

boarding gates to serve nine aircraft stands and can

just 16 days as 77 steel-framed modules, up to

accommodate around 1,000 passengers at a time

12m long and weighing up to 13 tonnes each.

feAture

and up to 8,000 people a day.

The use of an offsite solution allowed the airport’s

Raymond Millar Construction Director, The McAvoy Group

The offsite solution

minimum of disruption. It also allowed the fast-

The dedicated passenger boarding zone was

track programme for the project to be achieved.

20

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

operations to continue uninterrupted, with the

Architectural design A range of simulation tools was used to validate the performance of the proposed building against

Project challenges

international airport standards, while meeting the functional requirements of the client, Dublin Airport

The offsite solution had to address a number

Authority. A facility was developed that would provide a safe, comfortable passenger environment

of challenges on this project:

with the appropriate levels of service, amenities and passenger information.

n Programme – the building had to be delivered

Externally, the highly glazed building is finished in two shades of anthracite grey aluminium cladding to complement the existing passenger facilities. A screen of grey louvres wraps around the roof to

to a critical and short programme to

conceal services and plant rooms, and there is a structural cantilevered canopy to three sides of the

accommodate additional flights. It was

building to provide shelter for airport staff and passengers.

operational within a 16-month planning,

The internal environment is finished to a very high standard and the materials, lighting and signage co-

design and construction schedule.

ordinate with the other terminals. This includes hardwearing and impact-resistant internal wall cladding

n A highly constrained site – the space for the new facility was restricted within the South

with contemporary stainless steel joints. The rear wall of the boarding zone is a security wall, which incorporates security mesh and vibration sensors. An accessible floor void accommodates services.

Apron and the fully operational airport site.

n Full integration of airport mechanical and

A highly flexible airport facility

electrical (M&E) services – all M&E services

The South Gates facility is designed to operate in three different modes in a single day. It

(including data communications, fire and

accommodates departing flights in the busy early morning period, and facilitates mixed-mode

security) had to link into the existing live

operations in the afternoon, and flight arrivals in the evening. It can also be segregated so that

airport terminal systems, which was a hugely

departing and arriving passengers can be processed at the same time. This highly flexible

complex operation undertaken by McAvoy.

approach reduces congestion in Terminal 2.

n Open plan environment – clear uninterrupted

For the mixed-mode operations, an internal security ‘swing’ gate was incorporated into the

spans of over 19m were required for the 120m

building design to separate arrival and departure passengers.

long facility. This was achieved by engineering

Facilities include seven boarding gates, a café, toilets, baby changing facilities, and a workstation

the building modules to incorporate hot rolled

area with plugs and charging points.

structural steel beams, which removed the requirement for internal columns – a modular

Digitising offsite construction

industry first.

Building information modelling (BIM) was used extensively in the tender and design stages.

n Stringent fire safety standards – the scheme

McAvoy created a virtual reality (VR) model of the building to demonstrate the building design

had to meet stringent fire safety regulations

and offer a fully immersive VR experience. This allowed the client team to review the internal

that exceeded Building Regulations.

environment, and in particular the innovative acoustic ceiling solution. VR fly throughs at the

designed ceiling solution was developed using

At the detailed design stage, the client was able to make real-time changes to the internal layout. The

suspended panels in different shapes and

use of analysis tools also allowed McAvoy to simulate building construction processes, including the

orientations. This provides a high standard of

complex module delivery process, on a highly restricted airport site.

acoustics and its chequerboard appearance

All the principles of BIM were used for the project. 3D drawings and models were produced for

has created a strong visual feature as well as

both the steel structure and architectural modelling, and a common data environment was

a sense of space.

created. BIM was also beneficial for clash detection for the installation of complex M&E services.

n Enhanced acoustic specification – a specially

earliest stages of the project facilitated client engagement and informed key design decisions.

The customer perspective Iain Heath, Project Manager at Dublin Airport, said: “This is one of the fastest projects we have

the finished BuildinG speAks for itself. it is A hAndsome new fACility with hiGh quAlity finishes And CleAn ArChiteCturAl lines.

ever completed at the airport – from planning to the first flight in just 18 months. The finished building speaks for itself. It is a handsome new facility with high-quality finishes and clean architectural lines”.

Brian Looney, Contracts Manager at Flynn Management & Contractors, added: “This project has pushed the boundaries of offsite construction to create a valuable infrastructure facility. The quality of the finished building is excellent, and you would never know this is a modular building”.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

21

wAterford is wAitinG THE PEOPLE OF WATERFORD ARE WAITING FOR DEVELOPERS TO START BuILDING HOuSES, AND FOR A KEy DEVELOPMENT THAT WILL CHANGE THE FACE OF THE CITy AND IMPACT HEAVILy ON ITS FuTuRE.

A

t the moment, Waterford is planning one of the most significant developments in its history. A €300m plan aims to redevelop the long-neglected north quays.

The plan relies on Government funding for infrastructure improvements. A

total of €100m was requested by Waterford City and County Council, with €20m applied for in the first round. However, in November it was announced that the project was getting just €6m in this round.

The market Local residential surveyor Des Purcell of Purcell Properties says that the residential market in Waterford has picked up in recent years but that new houses are needed. Fianna Fáil councillor Eddie Mulligan describes the building of new houses in the city as quite stagnant. He hears from businesses that have invested in the area that they need greater and faster housing solutions: “We need to be able to deliver sustainable, affordable housing or sustainable, affordable accommodation models for the future”.

He states that in a recent meeting with a medical devices investor in the area, the company said their one concern was housing for staff.

In the past, the second-hand market and the new homes market fed off each other but there are few new houses around now says Des: “But there is a strong first-time buyer market confined to the secondhand homes market”.

According to Des, a new three-bed semi in the city will fetch about €230k-€240k. He has recently sold a few houses in the €700k-€800k range, which he had not done for a few years.

Des summarises the Waterford market – strong first-time buyer element; limited in supply; and, with a number of builders getting ready to start building houses soon: “We now have four or five builders with land, zoning, planning, services, money, all going to start selling three-bed semis”.

The south east region does not have a university and there have been plans for years to merge Waterford Institute of Technology (WIT) with IT Carlow to form the Technological university of the South East (TuSE). If this happens, it will be a huge boost for the region. However, talks between the ITs have not

Living in Waterford

always gone smoothly. The plan has full Government support, with Taoiseach Leo Varadkar saying he

Average rent: €955 (Daft.ie

hopes to see the merger happen soon. In July, he said the Government is waiting to sign off on the TuSE as soon as it meets the criteria and he urged the ITs to redouble their efforts. Eddie says the TuSE is vital to stop the brain drain in a region where one in four young people leave and don’t come back.

Rental Price Report Q3 2018) Average asking price for a house: €173,283 (Daft.ie House Price Report Q3 2018) Official figures on offices are not

feAture Colm Quinn Journalist and Sub-editor, Think Media

22

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

available but Des Purcell says modern offices to rent cost €16-€17 per sq ft.

Waterford Crystal site

A €300m redevelopment of the

Holiday weekend, Waterford

The former Waterford Crystal

north quays is planned. It will be

is taken over by a swarm of street

factory site is 36 acres and some hope

one of the most significant

artists who perform on the

it might be bought for the expansion of

developments in the city’s history. It will

city’s medieval streets for

WIT when the TuSE is formed, as it is

consist of retail space, offices, 300

everyone to enjoy as part of the

beside the main campus. Eddie

apartments and a hotel. A pedestrian

Spraoi International Street

Mulligan says the Government

bridge will be built across the Suir

Arts Festival.

should be purchasing sites like

to link the development with

this for that purpose.

the city centre.

Spraoi Every August Bank

North Quays

Boundary question The Waterford Boundary Review Committee recommended redrawing the Waterford city boundary further into Co. Kilkenny so the city could grow in a more balanced way.

After heated opposition from people in Kilkenny, this did not go ahead but the Government said the city needs to be allowed to grow into south Kilkenny. A joint structure made up of politicians from Waterford and Kilkenny is being established with the aim of taking on local authority functions for the area that would have gone into Waterford.

However, Eddie Mulligan has his doubts about joint authority and says cooperation hasn’t seemed to work in the past: “We need to expand because it’s been said before, we’re like a bird flying on one wing”.

Waterford Institute of Technology

Kilbarry This significant development

Waterford Viking Triangle The Viking Triangle is named after

Waterford Institute of Technology (WIT)

plans 2,000 nearly carbon neutral

is the largest third-level institution in the

housing units in Kilbarry and is backed

the walls which once made it and

south east and was recently announced as

by local and national authorities.

includes Reginald’s Tower, the oldest

the highest ranked IT in the country by The

Construction has already started on the

civic building in Ireland. The Triangle is

Sunday Times. There are plans to merge

first 69 houses. There is a plan to build a

also home to the Waterford Museum

WIT with IT Carlow to form the

solar farm beside the development,

of Treasures and the new Waterford

Technological university of the

which would provide an income

Crystal factory and visitor

South East (TuSE).

for the residents.

centre.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

23

thAt sinkinG feelinG WHILE MOST MuLTI-uNIT DEVELOPMENTS IN IRELAND HAVE A SINKING FuND, SCSI RESEARCH HAS DISCOVERED THAT MOST ARE INADEQuATE.

w

idespread

apartment

living is relatively new in Ireland but is growing

rapidly. Apartment numbers rose by 85% between

“

2002 and 2016. The housing crisis and continuing urbanisation mean that the trend will continue.

The growth of multi-unit developments (MuDs)

has seen the emergence of owners’ management companies

(OMCs)

to

manage

them.

Developments are usually managed on a day-to-

day basis by professional managing agents, many of them SCSI Chartered Property Managers.

eduCAtion is needed to help property owners understAnd why Good sinkinG funds Are in their interest.

An MuD needs a good sinking fund to ensure that

it has the resources to refurbish its common areas

SCSI report on sinking funds

and upgrade lifts, roofs, fire safety systems,

The SCSI recently published a report on

under their management have adequate

carpets, etc. Inadequate sinking funds reduce the

sinking funds in MuDs. This drew on

sinking funds.

quality of the property and potentially compromise

consultations with nine large Irish

health and safety. As the seanfhocal says: “An té

managing agencies, with data covering 632

nach gcuireann san earrach, ní bhaineann sé san

MuDs and 52,600 properties.

fhómhar” (“If you do not sow in spring, you will not

The age profile of MuDs in the study (Figure

not want higher charges. Related to this is

reap in autumn”).

1) suggests that the issue of inadequate

the finding that six out of seven MuDs do

The 2011 Multi-unit Developments Act requires

sinking funds will come sharply into focus

not have a BIF report (Figure 2) and so do

that MuDs set up a sinking fund and mentions a

in the decade ahead. A positive finding

not know how much funding

guideline annual contribution of €200 per

was that almost all MuDs covered by the

property. As MuDs differ widely, this is a purely

study have established a sinking fund.

notional figure. For a specific MuD, the OMC

If developments have inadequate

prepared a BIF report,

should ask a building professional to prepare a

funds and need to undertake

only a minority are

long-term building investment fund (BIF) report

works, a special levy for members is

(see panel).

often required. In all, 77% of agents said

feAture Finbar McDonnell Director, RF Property Management

24

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

feAture

Kevin Hollingsworth Managing Director, Omega Surveying Services

that less than one-quarter of MuDs

When asked why so many MuDs have inadequate sinking funds, agents said that many property owners do

they will require in the future.

Of

those

that

have

fully implementing its findings.

The SCSI report made a number of recommendations, including: For Government 1. One reason OMCs find it hard to build sinking funds is the challenge of collecting service charges from owners who refuse to pay them. Changes to streamline the collection of service charges would assist all OMCs.

Others 1. The Law Society of Ireland should check if pre-contract enquiries can include more on the sinking fund and whether a BIF report has been commissioned.

2. Local authorities and social housing associations that own or rent

2. Regulation should be developed to support good practice on sinking funds.

properties in MuDs should support the preparation of BIF reports and

3. Any update of the Act should require that a sinking fund be established

strong sinking funds.

from year one.

4. As many elements of MuDs are reasonably standard, a guide on standard ‘wasting assets’ in an MuD should be prepared.

5. The Government should consider ways to incentivise OMCs to put money aside.

The need for good sinking funds in MuDs is no different to the need for any home owner to put money aside in a prudent way for long-run refurbishments. However, OMC requirements mean that building a sinking fund must be co-ordinated across many owners and the detail of the

6. It is likely that some MuDs will face funding shortfalls for essential

buildings is more complex. Supporting OMCs to have good sinking funds will

projects. The Government needs to consider if they will support such

support apartment living in Ireland as a normal, long-term residential choice.

MuDs financially and in what circumstances.

FIGURE 1: Age of MUDs surveyed.

For new MUDs

0 to 5 years

1. Safety files passed to OMCs by developers should include information on

6 to 10 years

the lifespan of materials and associated recommended maintenance.

11 to 15 years

2. A BIF report should be prepared at the outset and provided to the OMC by the developer.

16 to 20 years

3. Sinking fund contributions should be included in annual charges from the

21 years plus

outset.

4. A small proportion of the purchase price of properties should be allocated FIGURE 2: MUDs that have completed a BIF report.

to the sinking fund.

No BIF report

Raising awareness

BIF report

1. Education is needed to help property owners understand why good sinking funds are in their interest.

2. Estate agents should supply information on sinking funds and whether a BIF report has been prepared.

The importance of BIF reports by Kevin Hollingsworth

render, I know that ongoing maintenance costs and short lifespan will

The majority of building investment fund (BIF) reports that I undertake

require higher sinking fund contributions.

are of 10- to 15-year-old developments. upon completion and meeting

BIF reports should be prepared at the outset of the development so that

with OMC directors, there can be disbelief regarding the costs in the

purchasers are aware how much an apartment will cost initially and over

report. These costs are arrived at by identifying a material type, its

the following decades. I believe this requirement should be put on a

expected lifespan, current remaining lifespan, the area and rate for

statutory footing.

replacement. Design and material selection of a building is critical to the

It should be remembered that the BIF report is a living document, which

life cycle costing of the development. When I arrive at a development and

can be used by the property manager to identify necessary works each

see a slate roof, uPVC windows and brickwork walls, the BIF numbers

year. It is also an evolving document that needs to be updated periodically

will generally be low due to their long life and low maintenance

to identify advanced deterioration of some elements, which may bring

specification. By contrast, if I see flat roofs, timber windows and painted

their replacement dates forward.

Read the full SCSI report ‘Sinking Funds in apartments: Meeting the Challenge’ at www.scsi.ie/resources/pdf/2018/sinking_funds_in_apartments_2018.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

25

it’s CorreCt to ConneCt THE SCSI CONNECTED CONFERENCE 18 TOOK PLACE IN THE BEAuTIFuL LyRATH ESTATE IN CO. KILKENNy ON NOVEMBER 30 AND DREW SuRVEyORS AND SPEAKERS FROM AROuND THE COuNTRy.

C

hartered Surveyors add value by working with surveyors in different disciplines said SCSI President Des O’Broin in his opening address: “Too often we stay in our bubble, but to stay valuable, we need to remain active”.

Great performance Before the Connected Conference 2018 started, a rural seminar was held covering the outlook for Irish agriculture and the land market. The Conference kicked off in earnest with SCSI Director General Áine Myler saying it’s all about collaboration and how that helps make connections.

Out of office

The first speaker was John Ryan, CEO of Great Place to Work Ireland. He said that there are a lot of

More and more people are moving away from

misconceptions about Great Place to Work and that it is nothing to do with “beanbags and free food”.

traditional workplaces and the next speaker was

It means great performance and a workplace that employees enjoy coming to. He spoke about getting

Vanessa Tierney of Abodoo, a job website for

the culture, trust and well-being right as these are “absolutely key to high performance”.

working from home.

He said that qualifications are becoming less important for some companies: “They want people who

Vanessa calls working from home smart working

are adaptable because they don’t know where the future is going”.

and said it is about using technology, connectivity

John warned not to get diversity and inclusion confused. Diversity is not inclusion. We’re getting better

and flexibility. At Abodoo, she said: “We don’t

at diversity in Ireland but we don’t do so well with inclusion. A successful company includes everyone

match people on CVs because a lot of people who

in the creation of its strategy.

want to smart work haven’t been in the workplace

He noted the old saying that people don’t leave companies, they leave managers and expanded on this

in a few years”.

by saying employees are loyal to a culture, not a strategy: “you need to provide a culture where people

Vanessa said attrition drops by 40% and

feel psychologically and emotionally safe”.

productivity goes up by 15% when you embrace

He advised organisations to ask employees what words describe the organisation. He said that words

smart working and companies may not have an

he often hears are “fear” and “soulless”. People often dread their workplaces so he said ask employees

option soon: “Millennials are the ones driving this

what needs to change. According to John, the three biggest issues in Ireland are poor management

and this is something they’re going to expect”.

behaviours, communication and performance management. Get to know people, talk to them, that’s

She gave some statistics: 77% of working people

how you build trust. People need to believe you are fair to them: “Organisations need to focus on

want this; 9% of companies offer it; and, 50% of

inspiring, speaking and listening to people”.

employees would leave their current job for more flexibility.

feAture

Some managers might be concerned about

Colm Quinn Journalist and Sub-editor, Think Media

future is about measuring output and projects: “If

26

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

productivity and time served but Vanessa said the you’re measuring success on working hours, you’ll die”.

Small towns The SCSI Working Group report ‘Rejuvenating Ireland’s Small Town Centres’ was launched on the day and featured prominently in the national media. One of the authors, Stephen Purcell of Future Analytics, spoke next and said the objective of the project was to ensure the vitality and long-term stability of small town centres.

He said: “There has been a significant change in consumer behaviour”. Online shopping has increased and will continue to increase. A rise in out-of-town shopping centres and car use has drawn people out of town centres.

The report highlighted cases where small towns are thriving such as Westport in Mayo.

He said strong leadership, plan-led change and community support are what can save small town centres. A model needs to be built

A FIGHTING CHANCE The SCSI report ‘Rejuvenating Ireland’s Small Town Centres’ was launched at the Conference. Pictured (from left) are: Society Director General Áine Myler; author of the report Stephen Purcell of Future Analytics; and, SCSI President Des O’Broin.

that other towns can follow.

Building and regulation

“

Kieran McQuinn of the ESRI gave an overview of the economy and said it has been performing strongly. He noted constraints in the labour

market and the shortage of housing: “In plain speak, we need to build a lot of houses over the next few years … If we are going to build houses, where will that labour come from?”

Immigration is the only answer, but this will put

Get to know people, tAlk to them, thAt’s how you Build trust. people need to Believe you Are fAir to them

further pressure on the housing market in the short term. The severity of the housing crisis

their purpose and said this had been an issue.

might also have the effect that people don’t

She stressed the importance of letters of

want to come here.

engagement: “It avoids a lot of complaints

Maeve Hogan of the Property Services

down the road if you and your client know what

Regulatory Authority (PSRA) was next on stage.

you are signing up to”.

The PSRA has been conducting audits for the

past year and will be publishing a set of

No blame, no shame

minimum standards regulations: “We’re close

Graeme Tinney of Griffiths & Armour looked at

to putting together a first draft of regulations”.

insurance and managing risk without spending

The

a fortune. He recommended the IPI initiative,

PSRA

is

proposing

to

introduce

timeframes to cover the payment of rents and

where parties agree not to sue, where there is

refunds of deposits. She came down hard on

no blame culture and collaboration is supported.

licensees who were charging people to view

Tom Phillips spoke about the build to rent

properties, saying this would be banned with

sector in Ireland. At the moment for a scheme

the new regulations: “That’s wrong, that’s

to be put down as build to rent, the owner must

improper conduct”.

agree not to sell it for 15 years. He thinks this

Overall, 60% of licensees have been audited. A

should be changed.

total of 63% of those have been found to be

Joanne Hession of Lift Ireland rounded off the

fully compliant, with 33% non-compliant,

day by talking about her organisation, a not for

mostly for minor issues. She warned against

profit that is aiming to improve leadership

using clients’ monies for anything other than

across Ireland.

GREAT PERFORMANCE Top: A great place to work makes employees perform at their very best, explained John Ryan of Great Place to Work Ireland.

WORK SMARTER Above: Vanessa Tierney of Abodoo said working from home is smart working and it is something employees will come to expect.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

27

muCh to disCuss At Cepi The SCSI maintains strong links with key

energy

European organisations to ensure that

mechanical ventilation of residential buildings

members’

will be introduced into Ireland in 2019.

views

and

challenges

are

performance

and

mandatory

represented at the international table. CEPI,

In a battle to combat money laundering, the

the European Association of Real Estate

fifth AML (anti-money laundering) Directive

Professionals, has a strong presence in

will be implemented in January 2020. The new

Brussels and is supported by member

changes will see mandatory reporting of

organisations from many European countries.

suspicious transactions for residential rents

The association aims to raise standards in the

exceeding â‚Ź10,000 per month, protection for

real estate profession, while promoting real

whistleblowers, inclusion of digital currencies,

estate brokerage and property management so

and the possibility of an Eu land register. To

that services are conducted by qualified

assist with logging suspicions transactions,

professionals with high ethical standards.

CEPI, with the support of the SCSI, is

At their recent General Assembly meeting in

examining the possible introduction of an

Warsaw, the discussion revolved around Eu

AML-compliant smartphone app to reduce the

Directives.

administrative burden for members.

Energy

regulation

and

harmonisation of standards are a priority for

Finally, the Eu elections will take place in May

the Eu Commission to tackle climate change.

2019. CEPI and its members will prepare an

A public consultation on energy performance

election manifesto for use when engaging with

calculations for buildings will commence

elected

shortly, while the more immediate change for

appointment to the Eu Council.

28

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

representatives

following

their

YOUR VOICE IN EUROPE Pictured at the recent CEPI General Assembly in Warsaw were (from left): Janet Griffith, CEPI Policy Director; Edward McAuley, SCSI Head of Policy; and, Guy Valkenborg, CEPI Director General.

runninG for ChArity!

oBituAry Shane H. Boyd BSc DipProjMan ASCS MRICS (1962-2018)

5k yet. Companies involved included JLL, AIB, Arthur Cox, Lisney, BNP

Shane Boyd died on May 21, 2018, after a long,

Paribas, Link Group, Cushman &

debilitating illness. Shane was Chairman of Boyd Creed

Wakefield, McGovern Surveyors,

Sweett in Dublin and a Director of the Sweett Group in

Kitchen World, Mitchell McDermott

London. His involvement with the SCSI included

and Aecom.

membership of the QS Committee.

A prizegiving ceremony was held

Shane was educated at Clongowes Wood College, Co.

after the run where the winners of

Kildare, and DIT Bolton Street, where he obtained his degree in Construction

the group and individual prizes were

Studies (Quantity Surveying). He spent three years working in London with

BORN TO RUN Elizabeth O’Hara and Nicola Gilleece.

congratulated by the Chair of the

Gardiner and Theobold, before returning to Dublin to join the practice Boyd

ySCSI Committee, Ciaran Gorman.

and Creed, founded by his late father Harry Boyd and Paul Creed. Shane

The annual SCSI Charity 5k Fun

The overall team winners were

became Chairman of Boyd and Creed in 1999 and set about expanding the

Run took place in September in aid

Mitchell McDermott, with Cushman

practice. He was central in the successful merger with Cyril Sweett in 2004,

of Focus Ireland. The event was

& Wakefield in second place. The

rebranding the practice as Boyd Creed Sweett.

proudly

sponsored by McGovern

female winner was Emma Quinn

Shane’s enthusiasm for problem solving was infectious to colleagues, design

Surveyors, Cushman & Wakefield,

from Linesight, while the men’s race

teams and clients. His advice was particularly sought by many young and

Kitchen World and Investec. Over 100

was won by Barry McGuirke.

groundbreaking architects. In mentoring staff, he was brilliant at explaining

people registered for the run from

Special thanks to Catherine Connolly

the ‘why’. Shane possessed the rare skill of being both a leader and team

across the financial, property and

(Vice Chair of the ySCSI) and Sean

player. Having played school cup rugby for Clongowes, he had a passion for

construction sectors, making this

Ryan-McCaffery for organising such

Leinster and Ireland Rugby, and the stories of his adventures travelling to

the SCSI’s most successful charity

a successful event.

away games were as entertaining as his views on the players.

While Shane was a consummate professional he was also a devoted family man. He met his wife Eileen through sailing and their family holidays were spent in Glandore and union Hall in Co. Cork.

Our thoughts are with Eileen, their daughters Catherine, Grace and Claire, his mother Kitty, sisters Deirdre, Sheila, Fiona and Aoife, and brothers Dermot and Cormac.

on their Bikes for ChArity

CYCLING CHALLENGE From left: Kevin Traynor, Cannon Kirk Group; Áine Myler, SCSI Director General; Peter Flanagan, Knight Frank; and, Ian Campbell, GVA Donal O Buachalla.

Congratulations to Team SCSI who took part in the Pinergy Cycle Challenge, an epic 350km cycle from Malahide to the Giants Causeway in aid of Daisyhouse, a charity which supports women out of homelessness.

Our thanks and admiration to Kevin Traynor from Cannon Kirk Group, Evan Lonergan and Peter Flanagan from Knight Frank, and Ian Campbell of GVA Donal O Buachalla for taking on this immense challenge.

30

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

meet the teAm in merrion squAre Patrick Darmody FRICS FSCSI Paddy is the Professional Assurance Surveyor for the RICS Valuer

current

Registration Scheme in Ireland. Following training with the uK

Before taking up this role, Paddy spent 40 years

DIT

degree

property

course.

assurance team, Paddy started undertaking review visits during the

in the property industry in Co. Clare, has been

summer to monitor members’ compliance with Red Book and Valuer

on the councils of both the Southern and

Registration rules. Paddy is a 1976 graduate of the then Diploma in

Western branches of the SCSI, and is a

Environmental Economics in Bolton Street – the forerunner of the

past Chairman of the Western branch.

kniGht frAnk tAkes five-A-side honours The annual ySCSI Five-a-side Soccer Tournament took place at Pembroke Wanderers Hockey Club in Ballsbridge on July 27. A total of 16 teams from across the property and construction sectors took park in the event.

After 43 very competitive and enjoyable matches, it was Knight Frank and Adoor Premium Serviced Apartments who went head to head in the final, with Knight Frank taking home the tournament trophy.

The award for best female player went to Julie Anne Forbes of the SCSI team, and Aaron Robinson of Vincent Finnegan took home the best male player award.

Ciaran Gorham, Chair of the ySCSI, would like to thank Cian O’Regan, David Rowe and Noel Traynor for all their support and efforts in arranging and HERO KNIGHTS Back (from left): Michaela Rowan; Robert O’Connor; Eoin Grant; Gavin Quigley; Terry Dougan; and, Colin McCarron. Front: Niall Quane; Sean Collins; and, Shannon Longmore.

running a successful tournament. Congratulations to Knight Frank and all the teams who participated to make it such a worthwhile event.

sCsi lAunChes sinkinG funds report In addition, almost 90% of managers say apartment buildings under their management have been forced to raise additional levies. This can arise when inadequate funds have been set aside and urgent spending is required.

The report, which is entitled, ‘Sinking Funds in Apartments – Meeting the Challenge’ was launched ahead of the SCSI’s Property Management and Facilities Management conference, which took place on October 17 in Croke Park.

Lead author of the report, Finbar McDonnell, described the findings as worrying and said the issue needed to be addressed urgently, not just by Government, but also by individual apartment owners: “The vast majority of property managers told us that the reason apartment buildings haven’t set aside sufficient funds is because property owners do not wish to pay REPORT LAUNCH Pictured at the launch of the SCSI report were (from left): Finbar McDonnell, RF Property Management; Áine Myler, SCSI Director General; SCSI President Des O’Broin; and, Kevin Hollingsworth, Omega Surveying.

increased service charges now, in order to build a sinking fund for the future.

“We believe the Minister for Housing, Planning and Local Government should stipulate that a Building Investment Fund (BIF) report must be prepared by an owners’ management company (OMC) every five years, and

The vast majority of apartment developments in Ireland have not set aside

that AGMs should take account of such reports in deciding on sinking fund

adequate funds for maintenance and refurbishment according to a new

annual contributions. The non-payment of service charges in MuDs is a

SCSI report.

related issue that needs to be addressed, and we recommend that changes

According to the study, three out of four property managers say less than

be introduced to make it easier for OMCs to collect service charge arrears,”

25% of apartment buildings have set aside adequate funding for such works.

he concluded.

32

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

whAt lies BeneAth SuBSuRFACE SuRVEyING TO DISCOVER WHAT IS BuRIED BELOW A SITE BEFORE WORK STARTS CAN SAVE TIME, MONEy AND LIVES.

d

avid

Graham’s

Subsurface

looking for below the ground, such as utilities

Engineering Division at Murphy

or an archaeological feature”.

Surveys

Desktop

uses

innovative

mapping,

manhole

surveys

and

technology to discover buried objects and dangers

electromagnetic locators (EMLs) are also used:

under the ground before opening works on

“Every survey site crew has a full range of equipment

construction projects.

to locate the buried services infrastructure on

David graduated from DIT Bolton Street in 1999

brownfield and greenfield sites, roads, streets,

and over his career has worked as a surveyor

business parks, hospitals and manufacturing plants”.

and project manager on high-profile projects

David says: “There is an element of geophysics

including the Luas and Dublin Airport Terminal 2.

involved in our surveying practices as well.

Locating what utilities and buried infrastructure

It depends on the project or the application, but

are below ground on a site before anyone starts

we use geophysical equipment for bedrock

breaking ground is extremely important. utility

mapping, archaeological features, foundations

strikes cause project delays and are costly to fix,

and landfill mapping”.

David’s spare time is mostly taken

but they can also risk site safety and may even

up

with

family

result in the death of construction employees.

Challenges

activities and he mentors

David’s department maps buried infrastructure

Our wet climate poses a challenge for subsurface

his daughters’ GAA teams

and underground utilities for clients using non-

surveyors: “It can have quite a big influence in

at Ballymore Eustace GAA.

intrusive survey and geophysical equipment.

relation to the depth of penetration into the

If he’s not doing that, then

ground using non-intrusive equipment on site;

he can probably be found

Equipment

therefore, we engage with our clients at tender

participating in a cycling

In subsurface surveying, Murphy Surveys

stage to ensure that the correct technology is

sportive somewhere around

uses multiple types of technology, as David

utilised to achieve the desired survey deliverable

the roads and mountains of

explains: “To actually scan the ground we use

for their project”.

Ireland.

ground-penetrating radar. We have multiple

Educating clients on using the correct survey

different types of ground-penetrating radars

specifications for subsurface engineering can

and which one is used is dependent on the

also take time. If not procured and carried out

requirements of the project and what we’re

correctly, the cost of project delays and utility

surveyor profile

The survey is not x-ray vision of the ground he

Colm Quinn Journalist and Sub-editor, Think Media

qualified surveyors and post-processed by a fully

strikes far outweigh the cost of this type of survey. says: “The survey needs to be carried out by qualified geophysicist competent in analysing the raw geophysical data”.

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

33

not stACkinG up IRELAND NEEDS TO EMPOWER OMCs.

the perCentAGe of new housinG to Be provided within existinG footprint of Cities to ACCommodAte 20% inCreAse in populAtion (national planning framework)

(Census 2016)

(Cso)

ApArtments Built in q1 And q2 2018

o

AverAGe level of unpAid serviCe ChArGes in omCs As A perCentAGe of inCome

(Author’s AnAlysis of 33 irish omCs)

the perCentAGe of the irish populAtion livinG in urBAn AreAs

wners’ management companies (OMCs) are not empowered to collect service charges and enforce owners’ obligations under title.

This is not a new problem, but we need to acknowledge the issue, learn from other countries and introduce robust legislation to empower OMCs and change the culture of compliance for apartment ownership in Ireland.

the lAst word Paul Mooney Managing Director, Benchmark Property

34

SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018

numBer of ApArtments needed in duBlin By 2022 (irish times, novemBer 4, 2017)