Surveyors Journal by Th!nk Media

Volume 1 | Number 4 | Winter 2011

SURVEYORS

JOURNAL CONSTRUCTION | LAND | PROPERTY

The

great reformer Chief Construction Adviser to the UK Government Paul Morrell

The Private Residential Tenancies Board

Tenancy Management System Bord Um Thionóntachtaí Cónaithe Príobháideacha Private Residential Tenancies Board

Advice for landlords n Online Registration Service is now available at www.prtb.ie! n You can now register your tenancies online with The Private Residential Tenancies Board, the PRTB. Log on to WWW.PRTB.IE n If you are letting property for residential purposes you must be registered by law. Online registration is quick and easy. Simply log on to www.prtb.ie and register in minutes! n The Private Residential Tenancies Board is the regulatory authority for the private rented sector. Residential tenancies must be registered with the Board within one month. Failure to register can result in fines of up to €4,000 and/or six months’ imprisonment. n You must be registered with the PRTB to claim for certain tax reliefs.

Contents

Society of Chartered Surveyors Ireland, 38 Merrion Square, Dublin 2. Tel: Email: Web:

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

Ciara Murphy, Director General

EDITORIAL BOARD 2011 Chairman: Tom Dunne

DIT

Members: Colin Bray

Ordnance Survey Ireland

Deirdre Costello Jones Lang LaSalle Costello Commercial

John Costello

Think Media

Tom Cullen Frank Harrington Kevin Hollingsworth

Smith Harrington McGovern Surveyors

Keith Lowe

Douglas Newman Good

Paul Mooney

PM Property Consultants Ltd

Paul O'Grady

Think Media

Derry Scully

Bruce Shaw

Claire Solon

ESB

PUBLISHERS Published on behalf of the Society of Chartered Surveyors Ireland by Think Media Ltd Editorial: Design:

Advertising:

Ann-Marie Hardiman Paul O’Grady Tony Byrne Tom Cullen Ruth O’Sullivan Paul O’Grady

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.

The Surveyors Journal is printed on recycled paper.

PRESIDENT’S MESSAGE

EDITORIAL

Going green Interview – Paul Morrell OBE

RED Book training

LAND

Agricultural Seminar

Robots in Amsterdam Four green fields

CONSTRUCTION 22 24

NEWS

Introducing the Professional Groups

NEWS FEATURES Society builds strong communications profile

Previewing Budget 2012

CONFERENCE 2011 A report from the Society’s Annual Conference

PROPERTY

28 30

Registering title

THE LAST WORD

Unfinished housing developments Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

President’s message

Building on success Society President JOHN CURTIN looks back on a successful Annual Conference and discusses ways to implement the ideas presented.

I think it is safe to say that our first conference as a merged entity was a complete success. I said in my speech that it was the largest gathering of construction, property and land professionals in Ireland this year, and it was heartening to see Chartered Accountants House so full of debate and discussion about the sectors we work in, and the future of our profession. A huge amount of that debate was stimulated by an excellent range of speakers, who covered topics from the future of the Euro to the future of land prices. One of the challenges of the conference was to make the event relevant to the interests of all members and I think the two parallel afternoon sessions worked very well – a large number of members told me that they found it difficult to choose which session to attend. Ireland and the profession of chartered surveying undoubtedly have a lot to learn from the experience of our international speakers, and the task for the Society is to harness that international experience and apply it to the Irish market. To that end, the Society has already made a submission to the Department of Finance recommending the creation of a Chief Construction Adviser, to mirror the excellent work in the UK construction sector by Paul Morrell, the conference’s keynote speaker. We are engaging with Irish pension fund managers to explore funding opportunities for Irish infrastructure. The Building Surveying Professional Group has completed a guidance note on the dilapidation of buildings and the life cycle costing of new buildings – themes that emerged at the conference, and which help the profession and its clients in the built environment. In the closing speech of the conference, Minister Hogan referred to the Priory Hall situation, and the Society has made a detailed set of proposals for reform of the building control process. The full report is on the Society’s website. The property sector in Ireland still awaits the long-promised residential and commercial property databases, and it was fascinating to see what positive impacts similar databases have had on the Canadian property market. Trevor Blakely was undoubtedly correct when he said that the bottom of the market is the correct time to put measures in place to prevent previous bubbles repeating themselves. The Society is engaging with the

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Department of Justice to ensure that Irish databases contain all of the necessary information to help prevent a repeat of previous mistakes. I am delighted that the conference gave us an opportunity to hear two experts in their field approach the issue of reform of upward only rent reviews. The media debate on this topic has become very polarised, so the conference was a rare opportunity to get beyond sloganeering and understand some more about what the impact of the proposed Bill will be on both landlords and tenants of commercial property. The business plans from both practice groups and regional committees emphasised the need for a heightened public awareness of the role a Chartered Surveyor has to play in our community. The conference has given the Society an excellent platform to inform the media, and through them the public, of our work. As a result of the conference we are now enjoying an elevated media profile. The media now understands the role our profession plays in important events like the Priory Hall case, the recent flooding and the MUD Act. The theme of the conference was ‘Pillars of Professionalism’. To use an analogy, the speakers at the conference gave us the tools, but it is now the challenge of the Society to use them and build our profession. We have made a number of reports and recommendations to Government since the conference in October, and through your professional groups and regions, I encourage all members to support the Society in developing its policy so that we can continue to make the work of Chartered Surveyors relevant and important to Ireland.

John Curtin, President, Society of Chartered Surveyors Ireland

Editorial

The vision thing

A number of things struck me looking through this edition of the Surveyors Journal. The first is the wide range of professional activities where Chartered Surveyors add value for their clients. Sometimes it is difficult for surveyors, who understandably concentrate on their specialism, to appreciate the range of activities with which their colleagues are involved. One of the purposes of the conference this year was to help members to increase their understanding of each other's roles, which should serve not only to develop the Society, but will also help members to offer better services to their clients, while maintaining professional standards. This diversity is a real strength of the Society. The second, and more worrying, thought is just how dependent the construction and property industries are on Government activity and the confidence that flows from growth in economic activity. This will be greatly influenced by the Budget, as well as developments in the Eurozone. Peter Stafford sets out the issues that will be of particular interest to surveyors on budget day. The third is that when we eventually do turn the corner, it is likely that the construction industry in particular will emerge with some significant new practices. It is worth reading the views of Paul Morell OBE in the interview with Paul O'Grady. I share his view that building information modelling (BIM) will be transformative and now is the time to be thinking about the effects of this. Finally, and more broadly, Dr Lorcan Sirr's book Dublin's Future, launched in the Society's HQ, takes a more visionary look at our capital city. It's good to see surveyors doing the vision thing!

Dr Tom Dunne, Editor.

News

Red Book training – important training for all valuers The Red Book training workshop was successfully delivered in October 2011 in Dublin, Carlow, Cork and Galway. Some 130 members attended the training, from both commercial and residential disciplines. Feedback was very positive; based on demand, the Society will deliver additional Red Book workshops commencing in spring 2012. The course is aimed at assisting valuers to understand what is required under the International Valuation Standards and The Red Book, and to apply this in their practice. The workshops commenced with a formal lecture-style format, with some short exercises and discussions covering Red Book requirements, and continued with a practical hands-on discussion of what is required in a valuation report to comply with the Red Book, and the practical aspects and problems of producing a valuation report. The workshops are aimed at practising valuers, both residential and commercial, who may undertake just a few valuations each year, senior valuers regularly undertaking Red Book valuations who want to check that they are complying with the latest version of the Red Book, and trainees just completing their APC via the valuation pathways. All members of the Society of Chartered Surveyors Ireland and RICS who carry out residential and/or commercial valuations must do so in compliance with the RICS Red Book – the international standards for valuation. The purpose of the Red Book valuation standards is to provide an effective framework, within the rules of conduct, so that users of valuation services can have confidence that a valuation carried out by a Society/RICS member is objective and delivered in a manner that is consistent with internationally recognised standards. There is a mandatory obligation placed on the individual valuer to follow these standards and an effective sanction in the case of a material breach. By the end of the course, attendees are able to: n outline the Red Book requirements for carrying out a valuation; n understand the client’s requirements and what can be done by the valuer to meet these; n produce suitable terms of engagement; and, n produce valuation reports covering all the relevant matters required under the Red Book. Don’t miss your next opportunity to attend Red Book training: keep up to date with the Society CPD and Training Calendar for further information – http://www.scsi.ie/events_calendar/cpd_events_calendar.

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

News

Dublin’s Future: New Visions for Ireland’s Capital City The launch of the book edited by Dr Lorcan Sirr took place in the Society’s HQ on November 3. The guest of honour was the Lord Mayor of Dublin, Councillor Andrew Montague. The book is a collection of essays, which for the first time recognises that the future of the island’s largest and most important urban conurbation is about more than the engineering of roads and the colouring of development plans. Music, literature, housing, ethnic minorities, theatre, energy and much more all have their

role to play in making and sustaining Dublin as firstly Ireland’s premier city and economic engine, and secondly, as a place where people will want to live, visit, do business, be educated, create, spend, be cared for, be employed, and in which to age. Contributors are recognised authorities in their fields. They cross sectors of age, private and public sectors, profit and non-profit, and each and every one has something interesting to say about the future of Dublin.

Pictured at the launch of Dublin’s Future: New Visions for Ireland’s Capital City were: The Lord Mayor of Dublin, Councillor Andrew Montague (third left), with (from left): Councillor Dermot Lacey; Patrick Daly; Lorcan Sirr (Editor); James Pike; and, Noel Brady.

Tennis tournament A dull morning gave way to a bright sunny evening just in time for 14 teams to take to the courts for the Chartered Surveyors tennis tournament, sponsored by The Irish Times. This was the largest entry for a number of years with some welcome new faces in addition to the stalwarts. It became clear as play progressed through the early rounds that there would be close fought contests, especially between the teams that take the competition seriously. At semifinal stage the four teams remaining were The Irish Times, Hooke & MacDonald, McGinley

Farrelly & O’Connor, and Seamus Morahan & Partners. Following some very close encounters, Hooke & MacDonald and The Irish Times emerged to face each other in the final. Competition was fierce between the two finalists and they finished level. A mixed doubles decider was played and The Irish Times emerged as victors to carry off the Irish Times Perpetual Trophy. The tournament has been in existence for 22 years and it looks like its popularity will ensure that it continues for many more years.

From left: The victorious Irish Times team – Alison O Riordain, Jackie Horan, Lincoln Nelson and Aidan Bolger; John Curtin, President of the Society of Chartered Surveyors Ireland; Peter Dargan, Irish Times Advertising; and, the runners up from Hooke & MacDonald – Fiona O’Connor, Maeve Cantwell, Des Donnelly and David Cantwell.

This issue in numbers

NUMBER OF TEAMS that took part in this year’s Chartered Surveyors tennis tournament (one of the largest entries ever).

(page 6)

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300

ATTENDANCE AT this year’s very successful Society of Chartered Surveyors Ireland Annual Conference.

(page 16)

News

Growing into the Future – Agricultural Seminar 2011 The first agriculture seminar of the newly merged organisation was held on November 10 2011 in Portlaoise. Some 90 members attended the event, travelling from regions nationwide. The feedback from the event was very positive – of particular note was the enthusiastic and informative address given by the Minister for Agriculture, Simon Coveney TD. An impressive lineup of experts contributed to the success of the event, including: Minister for Agriculture, Simon Coveney TD; Matt Dempsey, Editor, Irish Farmers Journal; Professor Gerry Boyle, Director of Teagasc; Jim Power, Friends First; Shirley Busteed, Property Editor, Irish Farmers Journal; and, Shay Arthur, Property

Registration Authority. Speakers gave an insight into a range of topics relevant to the Irish agricultural environment, including: n current status of the Irish economy – the role that the agri-food sector is playing and will continue to play in Ireland’s economic future; n agricultural land price trends: an outline of price trends over the past 10 to 15 years and a look at the buyers and sellers along the way, with a focus on the current market and where it might go from here; and, n an update on digital mapping in the Property Registration Authority, including the objectives of the PRA, the

process of digitising the registry maps, how we process casework in the digital environment, and what’s available to account holders of www.landdirect.ie as a result of completing the project. We would like to take this opportunity to thank the Rural

Minister for Agriculture Simon Coveney TD addressed the Society’s Agricultural Seminar in Portlaoise.

Surveying Professional Group for their invaluable contribution to this high profile event. The presentations can be accessed on the members’ area of the website.

Southern Region hosts Annual Dinner The inaugural Annual Dinner of the Society of Chartered Surveyors Ireland Southern Region took place on Friday, November 25 in the Rochestown Park Hotel in Cork. Over 240 people attended the event. The Guest of Honour was Phil Hogan TD, Minister for the Environment, Community and Local Government, who

€9,200

delivered a keynote address congratulating the Society on its efforts in raising professional standards. From left: Ciara Murphy, Director General, Society of Chartered Surveyors Ireland; Minister for the Environment, Community and Local Government, Phil Hogan TD; PJ Power, Southern Region Chairman; and, Society President John Curtin.

AVERAGE PRICE PER ACRE of land in Ireland during the first six months of 2011, according to the Irish Farmers Journal.

(page 30)

20%

REDUCTION IN THE NUMBER of complete and vacant houses in Ireland, according to the National Housing survey 2011

(page 34)

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

News

The business card BBQ

Annual Dinner

The business card BBQ took place on Friday September 30 in Merrion Square, and was extremely well attended. About 70 young members were joined by our Society President John Curtin, together with Peter Stafford, Eoin Cuddihy and Zoë O’Connor from the Society. The Young Members Committee felt that it was the ideal opportunity for young members to visit No. 38 to view the home of their new professional body. There was a great atmosphere and a lot of networking – certainly an event we hope to run annually.

The Society’s annual dinner will be held on Thursday February 2 in the Burlington Hotel. Details and a booking form will be sent out to members in the near future.

Back row (from left): Society Director of Policy and Public Affairs Peter Stafford; Kevin Brady; Stephen McCourt; Shane Caldwell, Treasurer; Michelle Kealy; Kieran Curtin, Immediate Past Chairperson; Paul Huberman; and, Kieran O’Boyle. Front row (from left): Society President John Curtin; Society staff Eoin Cuddihy and Zoe O’Connor; Ivor Ash; Marcus O’Connor, Chairperson; Astrid Lyons, Vice Chairperson; Andrew Ramsey; Noel Clarke; and, Owen Hearty, Secretary.

The Young Chartered Surveyors Annual Ball The Young Chartered Surveyors Committee decided that with a new dawning of the new Society of Chartered Surveyors Ireland it was time for a fresh venue for their annual ball. ‘The Ball in the Burlo’ was the title this year and what a fantastic and fun night it turned out to be on Saturday November 5. Due to incredible teamwork by the Committee, who secured a number of well-known sponsors, tickets were generously subsidised, making

it very affordable for our young members to attend. Society President John Curtin and the Young Members Committee Chairperson addressed the attendees. The overall message was that we must have professionalism, standards and ethics at the forefront of our working day, along with an energetic and positive approach to the tougher times we have endured to date. A great night was had by all and we look forward to hosting this event again in 2012.

From left: Holly and Marcus O’Connor; and, John and Bernie Curtin.

Young members enjoyed the opportunity to network with colleagues at the business card BBQ.

Upcoming events The young members hope to roll out more events in the next quarter, including CPD events, five-a-side soccer and many more. Keep an eye out for the emails coming your way and, if you are not on the database, why not contact the Society today and register with them? If you are interested in becoming involved with the Young Members Committee, please do not hesitate to contact the Chairperson, Marcus O’Connor, on marcus@mfo.ie.

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From left: Tegan White; Maeve Foley; Laura Torpey; and, Alex Patterson, all from Savills.

News

Building solutions for a changing world The challenges and opportunities for managers of corporate occupied property in the current depressed market were the focus of the Irish Property & Facility Management Association’s (IPFMA) national conference, held recently in the Croke Park Conference Centre. At the one-day conference, themed ‘Building Solutions for a Changing World’, a panel of experts from both Ireland and the UK looked at

the many challenges facing property, asset and facility managers in today’s changing environment and presented insights as to how best to approach these, as well as offering effective solutions. The keynote speaker was Kingsley Aikins, former CEO of Worldwide Irish Funds. He spoke on ‘Networking & the Irish Diaspora; a key piece of Ireland’s economic recovery jigsaw’.

Pictured at the Annual Conference of the IPFMA at the Croke Park Conference Centre in Dublin were (from left): Conference Chairman Felix McKenna of NAMA; Paul Keogh, RIAI President; Paul Whelan, IPFMA Chairman; and, John Curtin, President of the Society of Chartered Surveyors Ireland.

Society publishes new consumer guide

SCHOOL OF REAL ESTATE AND CONSTRUCTION ECONOMICS BOLTON STREET

IRELAND’S LONGEST ESTABLISHED SURVEYING SCHOOL

The Society of Chartered Surveyors Ireland has published a new user-friendly consumer guide for apartment owners, which covers changes to the law under the new Multi-Unit Development Act (MUD) 2011. Pictured at the launch of the new guide are Chartered Quantity Surveyor Patricia Power from RTÉ’s Room to Improve (left) and Siobhan O’Dwyer, Chair of the Property & Facilities Management Professional Group of the Society.

TAUGHT POST GRADUATE COURSES n MSc Quantity Surveying (Conversion) n MSc Real Estate (Conversion) n MSc Applied Construction Cost Management

Top valuer joins Murphy Mulhall Murphy Mulhall has announced the appointment of Olivia Farrell as Director in charge of valuations. Olivia is recognised as one of the leading valuers in the industry, combining experience and perspective with an in-depth knowledge of the Irish market to deliver comprehensive reports and advice.

n MSc Construction Informatics (IT) For further details contact Alan Hore or Martin Hanratty School of Real Estate and Construction Economics, Bolton Street, Dublin 1 T: +353 (1) 402 3873/3675 F: +353 (1) 402 3994 E: alan.hore@dit.ie martin.hanratty@dit.ie

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

News

Introducing the professional groups We continue our review of the Society’s Professional Groups. ED CAREY, Chair of the Residential Agency Professional Group, describes the work of the residential property professional, and BEN KING of the Geomatics Professional Group introduces this branch of the profession. The Chartered Residential Property Professional

The Chartered Geomatics Surveyor

With approximately 1,000 members, the Residential Agency Professional Group is the largest group in the newly amalgamated Society. The work of the Chartered Residential Property Professional is primarily in residential sales, valuations and lettings. Members are based around the country, typically in general practice with firms of estate agents and auctioneers, and also deal with agricultural land sales and lettings, and commercial sales and lettings. The Residential Agency Professional Group carries out a number of functions, including: n publication and promotion of market surveys; n promotion of commercial/residential/valuation surveying services to accountants, receivers, solicitors, and financial institutions; n adaptation and publication of RICS residential consumer guides; n promotion of RICS agency and brokerage standards; n promotion of Chartered Surveyors in auctioneering/estate agency practice; and, n maintaining an ‘open door’ policy to comments, requests and enquiries from fellow members and the public.

The geomatics surveyor is responsible for the collection, processing, analysis, management and presentation of spatial (location) data relating to the natural, built, social and economic environment. As a primary spatial data provider, the Chartered Geomatics Surveyor makes an enormous contribution to the productivity, development and health of our economy. The growth in EU and national governments’ spatial data agendas, new EU directives, and environmental and health and safety regulations related to spatial information, has led to a significant increased requirement to use spatial data in planning, development and sustainability. Reliance on more precise and accurate spatial data is rapidly increasing. This has resulted in concerns about the increased risks associated with spatial data, including enhanced possibilities of manipulating data and the growing number of novice users. Chartered Geomatics Surveyors can build long-term value and mitigate the risks associated with spatial data by providing professional expert services using many tools and techniques that include: n topographic and utility surveys of existing infrastructure; n geographical information systems (GIS); n building and infrastructure movement monitoring; n building information modelling (BIM); n flood mapping and modelling; n 3D laser scanning of existing buildings, infrastructure and heritage sites; n wayleave and legal boundary mapping; n hydrographic surveys of inland and coastal waterways; n as-built surveys and measured building surveys; n 3D LiDAR and aerial photogrammetric surveys; n engineering surveying and setting-out for construction projects; n mine/quarry surveying and natural resource exploration; and, n precision agriculture.

The Residential Agency Professional Group has also worked with the Society’s Executive on a number of submissions, including: n the house price register; n the forthcoming legislation and the Property Services Regulatory Authority (PRSA); n residential property tax; n pre-Budget submission; and, n addressing lack of mobility in the market. The Residential Agency Professionals Group is working to assist members to adapt to changes in the industry, such as the shift from home ownership to a situation where more long-term renting is taking place. Residential property professionals are also in a position to refer clients to fellow members such as building, geomatic or land surveyors for advice on property or land sales.

Chartered Geomatics Surveyors can provide professional, impartial advice on effective spatial data management that will facilitate better decision and policy making in Government agencies and NGOs.

Ed Carey

Ben King

Chair of the Residential Agency Professional Group

Chair of the Geomatics Professional Group

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News

Past Presidents’ Dinner

A large gathering of SCS and IAVI Past Presidents came together on Thursday November 17 in No. 38 for the first time since the merger of the two bodies. The function was an excellent opportunity to meet old and new colleagues and will become an annual event on the social calendar. Front row (from left) Anne Hargaden; Thomas Darcy; John Daly; Tom Gavigan; Wendy Jane Catherwood; Des Byrne; Tony O’Loughlin; John Curtin (President); Tom Dunne; Paddy Quinn; Brendan Donohue; and, Eddie Barrett. Back row (from left): Tommy Lombard; John Younge; Barry Smyth; Robert Ganly; Peter Tuohy; Jim Dent; Anthony Leonard; Pat Duffy; Peter Stapleton; John Costello; Paul McDowell; Pat Stephenson; Felix Mckenna; Alan Cooke; Ken Cribbin; Edward Carey; Larry Martin; James O’Halloran; John Doyle; Cormac Meehan; Roland O’Connell (Senior Vice President); Áine Myler; John Dawson; Conor Hogan; Kersten Mehl; and, Aidan O’Hogan.

Volume 1, Issue 4, Winter 2011 | SURVEYORS JOURNAL |

News feature

Society builds strong communications profile Communications Director CONOR O’DONOVAN says that the Society’s communications policy is leading to excellent coverage of its activities.

The Society is currently implementing its communications strategy in conjunction with the Communications and Events Standing Committee, which comprises members of different professional groups and regions. The Standing Committee, which meets on a quarterly basis, has strategic oversight of the Society’s communications, marketing and events strategy. The strategic objectives of the Standing Committee include: n promoting the Society and its remit to enhance, advance and enforce standards in construction, land and property – in the public interest; n positioning the Society as the experts on all construction, land and property markets (and becoming the go-to professionals for the media); n promoting the work and professionalism of Chartered Surveyors; and, n delivering relevant and timely member communications. A brief update of the Society’s communications activity over the past couple of months follows.

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External communications PR coverage The Society has been very active in relation to external communications and public relations. Press releases have been issued on a range of construction, land and property topics including: n fire safety and the need for effective enforcement of building regulations; n flooding tips for home and business owners; n the European Infrastructure Expansion Fund; n rent reviews and the need for action on the proposed legislation; n the multi-unit development transfer deadline and the implications for unit owners; n the Global Adjustment Fund for assisting unemployed construction workers; n the tender price index; n commercial property values; n residential property values;

News feature

We would like to express our gratitude to all of the spokespersons who have participated in media interviews on behalf of the Society. n the dangers of below cost tendering; n advice to homeowners to check insurance premiums using the rebuilding guide; and, n the need for a national property price register. Media coverage for the Society was achieved across a range of national TV, radio and press, as well as regionally. This included RTÉ News and Primetime, TV3, RTÉ Radio 1, Newstalk, Today FM, UTV Radio, 98FM, The Irish Times, Irish Independent, Irish Examiner, Sunday Times, Sunday Business Post, Daily Mail, The Star, Farmers Journal and many more. Regional coverage has included the Limerick Post, Meath Chronicle, Connacht Tribune, Leinster Express, Carlow Nationalist, Offaly Express, Nenagh Guardian, Irish Farmers Monthly, Kildare Nationalist, Roscommon Herald, Westmeath Independent, Wexford Echo, Limerick Chronicle, Donegal Democrat, Galway Independent, Leitrim Observer, Anglo Celt, Waterford Herald, Longford Leader and many more. We would like to express our gratitude to all of the spokespersons who have participated in media interviews on behalf of the Society and to our media advisors Gordon MRM. A full list of links to media coverage is available on www.scsi.ie.

encouraged to display the branding on their website and at the bottom of emails. Special formats of the logos are available on the website under About Us and Branding, or by emailing brand@scsi.ie.

Internal communications The Society is rolling out a number of new internal communications channels. Our objective is to ensure that members receive timely information relating to their area of professional practice, and also find the website to be a useful resource for news and information. Members receive the Property & Construction Weekly ezine on Monday mornings, which provides information on the Society for the week ahead, and links to property and construction media coverage. Each of the professional groups will fall under the construction, land and property clusters and will receive dedicated construction, land and property ezines to keep them informed of the work of the professional groups and practice-related information. Members will also receive a Council ezine on a quarterly basis to keep them informed of news and decisions at Council level. The Society’s website now contains more information for members in relation to Society news, events, consumer guides and member guidance notes. The members’ section contains areas for each of the professional groups, where minutes of meetings and contact details for committee members are contained. This will be enhanced over time and we hope that you will find the website to be a useful resource.

Social media Consumer guides The Society has also developed a number of consumer guides in conjunction with the professional groups. The Residential Agency Professional Group launched a consumer guide to auctions, which provides a clear and impartial overview of the auction process from a buyer’s and seller’s point of view, and sets out the steps that both parties should take before, during and after the auction. The publication of the guide coincides with an increasing trend towards multiple lot auctions. It is one of the most downloaded publications on the website.

The Society is active on all of the social media channels including LinkedIn, Facebook, Twitter and YouTube. We would encourage members to engage with the Society via these channels and to utilise them to stay informed of the latest news and developments. For members who are interested in finding out more about using social media in their business, the RICS has produced a very useful guide, which is linked on the Society’s Twitter page. The Society’s YouTube page contains two short videos about the profession: Property as a career; and, A day in the life of a building surveyor.

Branding

Conor O’Donovan

Members have all received branding packs and it is encouraging to see such a high level of uptake, and members using the branding on their premises, advertising and signage. Members are also

Conor is Director of Communications and Marketing with the Society of Chartered Surveyors Ireland.

Volume 1, Issue 4, Winter 2011 | SURVEYORS JOURNAL |

News feature

Previewing Budget 2012 PETER STAFFORD highlights some issues to watch out for on Budget day. While it is now well established that the Government faces a significant challenge in moving Ireland closer to economic balance, the exact ratio of tax increases and spending cuts that will be announced on Budget day have only been hinted at. Based on the patterns of expenditure seen over the first ten months of 2011, it is likely that capital investment in public buildings and infrastructure will be further cut in the Budget, with all but the most vital areas of expenditure mothballed, postponed or cancelled. Furthermore, increases in taxes, levies and other personal and business charges are likely to do very little to improve consumer sentiment or lift the property market. The Budget has been somewhat undermined by the memorandum of understanding between the Irish Government and the Troika at the time of the bailout. The memorandum sets out the broad fiscal objectives that the Government intends to meet over the medium term as part of the bailout package. Every quarter, Ireland’s finances are inspected by the Troika and adjustments to policy made. This ongoing external monitoring significantly reduces the scope of any changes to taxation or spending that the Minister for Finance can make in December. Nonetheless, there are still some areas of domestic policy in which the Government can make reforms next month, and the Society has made a submission to Minister Noonan and is working on a series of targeted policy recommendations between Budget day and the publication of the Finance Bill to give effect to those budgetary changes. The Society has made a detailed submission to the Minister on areas of policy relating to construction, property and land, and I set out some of the broad areas below.

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Improving public capital investment During the last four years, Government investment in public capital works has been cut with each budget. The consequence has been that spending departments and agencies have not been able to properly schedule their investment plans over the medium term, and many viable projects have collapsed as their funding was suddenly cut mid-way through the design or tendering stages. The Society has recommended the movement away from year-to-year funding, and the introduction of rolling multi-annual funding envelopes, so that spending agencies can be assured of receiving funds to schedule, plan, procure and deliver public works properly. Not only does sustained public investment in infrastructure serve to assist in Ireland’s efforts to regain a competitive advantage internationally, but it also serves as an important job creation mechanism during a period of very high unemployment. The Society of Chartered Surveyors Ireland recommends the creation of a new office of Chief Government Adviser on Construction. The Chief Government Adviser on Construction should be central to the formation of the multi-annual public capital programme (PCP) and the monitoring of how those capital spending envelopes are delivered. The Adviser should be centrally placed to co-ordinate procurement and delivery at department and project level, and oversee contact between Government and the construction sector, including professional service providers such as Chartered Surveyors. The office should be positioned to work on a cross-departmental basis, providing Government with high-level independent, technical expert advice on construction procurement and public capital spending-related issues. Other countries that have more mature PPP markets have faced similar difficulties to Ireland in finding private and public investment following the banking crisis. Many of them have reacted by establishing state bodies to oversee PPP policy and help re-activate lending for PPPs. The Society believes that a centrally co-ordinated agency should be set up under the auspices of the Chief Government Adviser on Construction to stimulate project delivery activity through non-traditional procurement methods, improving the viability of private pension funding and overseeing a “post-banking crisis” model of PPP activity. In all its funding approaches, the Government must recognise the importance of appropriately funding projects for the life cycle of buildings and ensuring that public buildings are procured to a standard that will maximise the building’s life, reduce its running costs and promote environmental sustainability in the built environment. Through proper monitoring of life cycle costing, this does not necessitate an increase in up-front costs but can assist in reducing costs in the longer term.

News feature

Transparency A transparent and functioning property market

The Society has long advocated the publication of a house price and commercial lease database, to bring some much needed transparency to the property market.

Both the commercial and residential property markets continue to face significant crises, caused by a lack of consumer and investor confidence and the general weakness in the macro economy. In its submission to the Minister, the Society has repeated its call for the creation of a public database of property prices. The Society has long advocated the publication of a house price and commercial lease database, to bring some much-needed transparency to the property market, and at long last it looks as though this will soon be in place as the PSRA Bill has passed through the Dáil. The Society is also a strong supporter of reform of local government financing following the collapse in development contribution income for county and city councils. The Society advocates a movement from taxing residential property at the point of sale towards a fair, equitable, sustainable and transparent annual household charge, ring-fenced to support local services. In the pre-Budget Submission, the Society has called on the Government to reduce stamp duty on commercial property to 1%, to bring the transaction tax on Irish commercial property into line with that of the UK. Ireland is still experiencing a large degree of interest in investment from multinational companies, but the Society believes that such investment is being undermined by the high levels of transaction tax compared to competitor economies, as well as the ongoing uncertainty about reform of commercial property leases.

by the Minister for Finance in December. The Society will be making further submissions to him on a range of policy areas and we encourage participation from members in assisting the Society to develop our policy positions.

Society of Chartered Surveyors Ireland submissions Formal submissions made by the Society and professional groups to Government departments and agencies can be accessed on the Society’s website under the heading ‘Newsroom and Publications’.

Society of Chartered Surveyors Ireland policy Draft policy statements and discussion papers can be accessed in the members’ section of the website. Feedback on these papers is welcome and any thoughts, comments or ideas can be sent to policy@scsi.ie.

Peter Stafford Peter is Director of Policy & Public Affairs with the Society of Chartered Surveyors Ireland.

Audits of State-owned property and land In England, Wales and Northern Ireland, the UK Government has made significant financial savings by undertaking an audit of all buildings and land in public ownership and creating a strategy for the orderly disposal of surplus property and land. A similar recommendation for the Irish Government was made in the 2009 McCarthy Report. The Society believes that the McCarthy recommendation for a nationwide audit, mapping and disposal strategy for built assets in State ownership should be undertaken immediately. This process should begin with the listing of all buildings owned by central and local Government, and the production of an online map showing their location, type, age and ownership. An annual ‘state of the Estate’ report along similar lines to reports produced in England and Wales should be published, showing what savings have been made to the exchequer by: (a) disposing of surplus assets; and, (b) investing in existing buildings to improve their life cycle and sustainability.

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www.rentview.com Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

Conference 2011

Pillars of Professionalism The Surveyors Journal reports on the first Annual Conference of the new Society.

From left: Speaker Trevor Blakely of BMO Capital Markets Real Estate Inc.; speaker Paul Morrell OBE, Chief Construction Adviser to the UK Government; Society of Chartered Surveyors Ireland Director General Ciara Murphy; Society President John Curtin; and speaker Dan O’Brien, Economics Editor of The Irish Times.

Over 300 members of the Society of Chartered Surveyors Ireland gathered in Chartered Accountants House in Dublin on October 21 for the first annual conference of the new Society. In his welcome to delegates, Society President John Curtin said that the aim of the conference was to increase members’ understanding of each other’s roles, and to assist delegates in building and maintaining the professional standards, education and ethics that Chartered Surveyors deliver for their clients. He spoke of the difficulties facing the profession in recent times, but celebrated this gathering as a very positive occasion, showing that the pillars of the profession stand strong. He thanked the event sponsors for their contribution to the day’s success, and called on members to get involved, both by participating in the discussions on the day, and by joining over 500 members already involved in the Society’s committees, professional groups and assessment procedures.

The economic backdrop The conference’s opening session had a strong economic focus, with three speakers who all offered valuable insights into the industry and into the economy as a whole. Paul Morrell OBE, the UK Government’s Chief Construction Adviser, gave a stimulating presentation on how Government and the construction industry can work together to maximise value in public

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procurement while creating sustainable buildings and maintaining excellent design standards. An in-depth interview with Mr Morrell is featured on page 24 of this edition of the Surveyors Journal. Dan O’Brien, Economics Editor of The Irish Times, offered an overview of the Irish economy, including our prospects for recovery. He said that Ireland’s greatest weakness at present is our high levels of debt, and spoke of the need for a radical restructuring of the banking system. Among the country’s strengths, the economy has grown this year despite Budget adjustment, indicating that austerity is not tipping us back into recession. Ireland’s exports are at an all-time high, and as the most globalised economy in world, one of the effects of recession has been to make the country more competitive. Ireland is also the 10th easiest place in the world to do business, a ‘low red tape’ environment that is a huge advantage. In conclusion, he said that efforts to control our finances appear to be working and, while recovery will be slow, if global and European circumstances stabilise, the worst is hopefully over for Ireland. The final speaker of this session was Peter Brown, Managing Director of the Irish Institute of Financial Trading (IIFT). Peter discussed the ongoing crisis as it has affected the markets, and emphasised the importance of a decision from the Eurozone leaders in order that stability can be restored. He said that the traditional European cultural belief that debt forgiveness is not

Conference 2011

From left: Speaker Paul Morrell OBE; Master of Ceremonies Dr John Bowman; and, speaker Trevor Blakely.

Over 300 delegates attended this year’s first Annual Conference of the amalgamated Society.

Society President John Curtin gave an opening address.

Chartered Accountants House on Pearse Street in Dublin proved an excellent venue for this year’s gathering.

acceptable will have to change, as the only way the economy can recover is to write off some debts, particularly negative equity. He suggested that if Greece is allowed to write off some of its debts, Ireland should be too, and should use those monies to “wipe out negative equity”. He pointed out that most SMEs start with family investment and this will be impossible in the current climate. He felt, however, that there would be huge resistance among politicians to debt forgiveness and therefore it was unlikely to become policy.

lending. These can limit growth but, according to Trevor, this keeps the industry stable and keeps speculators out of the market. He described the RealNet online database, established in 1995, an industry-led and funded database providing seamless information and transparency on costs, prices and lease information. Trevor concluded by arguing that Ireland needs tougher lending policies and more prudent underwriting (which must be Government led), but with the right policies and good lending objectives, Ireland’s property industry could be back in three to four years. Maurice Whyms, Director of Attain Consulting, and Chairman of the Domestic and international best practice Irish Association of Pension Funds, discussed investment in Session two began with a presentation from Trevor Blakely, infrastructure by pension funds. He gave a brief overview of the Managing Director of BMO Capital Markets Real Estate Inc, who pensions industry, and said that both defined benefit and defined spoke about how Ireland could learn from the contribution schemes invest mainly in stocks and shares, but that Canadian real estate model. He funds are now actively seeking alternatives to this traditional described the housing boom in approach. Canada in the 1980s, and the One of the possible alternatives is infrastructure funds, and prolonged recession Maurice discussed the pros and cons of these. Among the throughout the 1990s, positives, these schemes are tangible, low risk, and less when house prices sensitive to the economic climate, and are also socially dropped by up to 40%. responsible. On the negative side, they are not longAs a result, Canada now Society President John Curtin spoke of term investments, and there may be issues around Chartered Surveyors’ commitment to has much tougher rules liquidity, which is important to pension funds. He professional standards, education and ethics. around mortgage concluded by saying that infrastructure funds can work

Pillars stand strong

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Conference 2011

John Curtin said that the aim of the conference was to assist delegates in building and maintaining professional standards, education and ethics.

for pension funds, but only if they stand up as investments in their own right, and that there was a strong argument for further investigation of the issue. The final speaker of the morning was Jacqueline Fearon, Land and Property Advisor to the Asset Management Unit (AMU) of the Northern Ireland Executive, who spoke about public sector asset management. The AMU has a brief to bring about savings of one billion pounds to the NI Executive over three years through a detailed audit of all government-owned property (the ‘estate’), and the formulation of plans, in conjunction with government departments, for disposal of surplus assets, and the more efficient use of property assets that are retained. A central asset register will be completed by June 2012, using the ePims electronic property information mapping service to measure, compare and benchmark property assets. The AMU reports directly to the Executive, which has empowered them to seek relevant information from the 12 Government departments, and they plan to issue Northern Ireland’s first ‘State of the Estate’ report next year.

Built environment In the first of two parallel sessions in the afternoon, Dermot Kehily, lecturer in the School of Real Estate and Construction Economics in DIT, spoke on how to help clients understand costing the life cycle of buildings. He advocated that whole life cycle costs should

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be integrated into the cost plan at every stage of development. With over 15 years’ experience in the construction industry in both the US and Ireland as a quantity surveyor, construction manager, cost consultant and estimator, Dermot has an active research interest in life cycle costing analysis. Perhaps his most telling figures were that in traditional costing methods, construction accounts for 42% of costs, while in life cycle costings, construction typically accounts for 12%. He said that US studies have shown that for every extra $3 spent on a green school, $9 can be saved over 20 years; and that for every extra $4 spent on a green office building, $11 can be saved over 20 years. These types of figures can throw light on what is really the most economically advantageous tender. So why aren’t life cycle costings in common usage? There is, he says, confusion over terminology and a lack of common methods, structures and standard cost measures. Professor Malcolm Hollis is a Chartered Surveyor who specialises in defect recognition, and the diagnosis of the cause of failure and diminution in value. He was appointed Professor of Building Pathology by the University of Reading in 1988. The author of 11 books and editor of a journal and The Surveyors Fact Book, he gave a tour de force on bad planning in building construction. His examples were many and often either hilarious or dangerous: a shopping centre in Poland with a spectacular glass frame where, when it rains, the design is such that all the rain flows over the

Conference 2011

From left: Aidan Heffernan; Edward Carey; speaker Mairead McGuinness MEP; and, Padraig Sherry.

Dr John Bowman was, as ever, an excellent Master of Ceremonies.

From left: Pat McGovern; and, Professor Malcolm Hollis.

entrance so no one can get in or out; a paper storage facility on the banks of the Thames in London with no walls and ground, which gathers water at the centre; a huge plant and machinery basement in a major office block with access only by steep, narrow stairs; and, the Hancock Building in Boston, which had glass panes drop out. The examples were all well illustrated, and he concluded with a series of lessons learned from the examples, which he summed up as: “Good site control and knowledge of materials reduces human error”. Jonathan Cooper has 27 years’ experience in river engineering and restoration, urban drainage design, strategic catchment management, and flood risk policy. He is currently directing JBA’s portfolio of catchment flood risk management plans commissioned by the OPW. Jonathan has advised many councils in the UK and Ireland and his presentation on planning and flood risk management was timely given recent events in Ireland. He maintained that the lessons from those recent events were: employ a professional and remember flood risk management is a niche area; professionals including surveyors should question the science and work the evidence; they should also be transparent and impartial as flood risk management, in his experience, can be very emotive; and, finally, professionals need to be realistic about what they can achieve and sometimes ‘no’ is the answer. In answering a question from the delegates about the lack of consultation on the

recent proposal for flood defence in Clontarf, Jonathan said that there needs to be a move away from the ‘decide, announce, defend’ model to an ‘educate, deliberate, decide’ model.

Property In the second parallel session, Mairead McGuinness MEP opened proceedings with a discussion of the implications of CAP reform for land prices. Farmers and interested parties are eagerly awaiting some indication of how the system will look in 2014. Uncertainty about how payments systems will function is having an impact on planning, and inevitably on sales. The announcement of the EU budget will be crucial, and current discussions are obviously very difficult. Ireland must try to retain its funding, as farm incomes are still very low, despite the upturn in agriculture. She discussed the “tiny” volume of land sales in Ireland, and said that there is a need for research to help build a viable farming community. She also mentioned the supposed NAMA land bank, and the need for transparency on exactly how big it is and what plans there are for its disposal/future use. The second part of this session was a debate on the contentious issue of upward only rent reviews. Aidan O’Hogan, Fellow of the Society and past president of the IAVI, offered the landlord’s perspective. Aidan went through the various arguments for retrospective abolition of upward only rent reviews, pointing out the

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Conference 2011

From left: Liam Hargaden; and, Jim Fingleton.

From left: Patrick O’Dwyer; and, Patrick Roe.

From left: Martin Hanratty; Niamh O’Connor; and, Oliver Held.

From left: Martin O’Donnell; and, Philip Farrell.

reasons he felt they were not sound. He argued that only greater retail sales, not lower rents, can preserve jobs, and that there is no evidence for the claim that 40,000 jobs will be lost. He also challenged the idea that upward only reviews were uncompetitive or unfair, and argued that retrospective review damages the credibility of all contracts, and that break clauses will allow tenants to walk away. He argued strongly that continued uncertainty on this issue is preventing foreign investment. Lesley Webber OBE, a leading property litigation lawyer in the UK, offered the tenant’s perspective. She discussed whether upward only rent reviews could be considered morally, legally, intellectually, practically or economically justified and in each case felt that they could not. She felt that they insulate landlords in a way that is inequitable and put responsibility disproportionately onto tenants. She also felt that they distort rental and capital values in a downturn, and that economic stability is affected because businesses need to restructure to survive. She argued that most other countries do not have upward only reviews and are able to attract foreign investment. She stated that “only fragile, smaller covenants would ultimately be affected” by the legislation. She also argued that politicians must make difficult decisions, and must decide on the course of action that benefits the general good; if we can keep jobs by protecting fragile tenants, then there’s an argument for abolition.

A lively debate followed these presentations, as delegates gave their opinions on the proposed legislation. How legislation will deal with arrears, the morality of undoing contracts, and voluntary renegotiation of contracts were among the issues discussed.

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The business landscape Andrew Weld-Moore, manager of the small markets online sales operation at Facebook in Dublin, addressed the audience on how they could use social media to improve their business. He discussed the concept of ‘Social by Design’, and gave a number of examples of the power of social networking as a business tool, from friend recommendations to how businesses can use their own Facebook page to attract new business and incentivise clients. With 800m Facebook users, 50% of whom log on daily, social media is transforming industries. Andrew suggested strategies to best use social media, such as: connecting online and offline worlds by telling everyone about your Facebook page, creating events and inviting clients to ‘like’ the page; communicating and engaging with users by posting weekly updates and sharing exclusive content; and, using the page insight facility to see who is connecting to your page, and tailoring marketing to suit. The final speaker of the day was Phil Hogan TD, Minister for the Environment, Community and Local Government. Minister Hogan

Conference 2011

Renew confidence Minister for the Environment Phil Hogan spoke of forthcoming legislation to introduce mandatory certification of compliance.

Minister for Environment, Community and Local Government Phil Hogan TD was the afternoonâ&#x20AC;&#x2122;s final speaker.

congratulated the Society on its amalgamation and on such a successful conference. He said that the cycle of boom and bust had led to a loss of confidence, and that it was timely and appropriate that the construction sector should examine its position and look to consolidate its professionalism. He addressed the issue of legislation to improve standards, particularly in the wake of the Priory Hall scandal, and stated his intention to introduce legislation as soon as possible, including mandatory certification of competence with supporting documents, rather than opinions of compliance. He pointed to the need for greater efficiency among local authorities in terms of inspection procedures and oversight, and announced that a consultative process would begin soon in regard to the proposed legislation. He also stressed his commitment to sustainable policies in construction, e.g. to improve energy performance in homes. He said that Ireland was an early adopter of energy-efficient products in ordinary homes, and raised the possibility that we could manufacture these products too. Innovation to create sustainability across the green economy and the knowledge economy was Government policy, and sustainability is a core planning objective, with a green public procurement policy in the pipeline. The Conference concluded with a reception allowing delegates to discuss the proceedings.

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Construction

DERMOT KEHILY examines the question of what constitutes a ‘green building’ and explores the United States Green Building Council’s rating system – LEED.

Going green Sustainable development is defined in the Brutland Report (1987) as “development that meets the needs of today without compromising future generations in meeting their own needs”. Sustainable development encompasses a whole system analysis of the effects of design, not just on environmental issues, but also on social and economic issues. Any criteria assessing sustainable design and construction must assist decision makers in reaching the best option that balances the total economic costs against social and environmental consequences.

Environmental considerations in Ireland Traditionally, environmental considerations have not been on the agenda in the Irish construction industry. Much of Ireland’s environmental and building control legislation since the 1970s has been initiated by directives from the European Union. Many professionals and contractors, while paying lip service to the relevant buzz words, such as energy efficiency, embodied energy and green construction, have achieved little to promote a sustainable future in the industry, other than meet the minimum requirements set out in the legislation. However, in recent times a responsive minority in the industry has begun to practise and push sustainable and green building principles.

Drivers for change The primary drivers for change can be traced back to a number of well-documented United Nations conferences in the 1990s, notably Agenda 21 in Rio de Janeiro in 1992, the Kyoto Protocol in 1997, and the Earth Summit in Johannesburg (2002). Many EU directives on sustainable development are a result of Europe collectively

Environment

signing up to principles set out at these conferences, especially the Kyoto Protocol. While the Irish Government has enacted EU directives on sustainable development over the years – predominantly through Part L of the Building Regulations, the formation of the SEAI and the implementation of the building energy rating (BER) system – the industry itself has been putting measures in place over and above what is required by law. Many of these measures are born in the international domain, but the Irish construction industry is starting to use these principles and recognise their potential, not just for implementing greener construction practices, but also in the marketing and finance of construction projects. An example of this is the recent formation of the Irish Green Building Council (IGBC). The IGBC’s founding members are taken from a broad spectrum of professionals, academics and industry representatives from within the construction industry in Ireland.

Green building councils Those companies and individuals who participate in green building councils worldwide recognise the need for transformation of the built environment to one that is sustainable and based on accepted principles of green construction. There are now over 20 established GBCs in the world, with another 60 emerging. The work of the United States Green Building Council (USGBC) has led to a number of federal departments and many state and local governments across the US adopting the USGBC’s green building rating system, LEED (Leadership in Energy Efficiency and Design) for the sustainable procurement of public funded projects. This is really the

Economy

Sustainability

Society

FIGURE 1: Circles of sustainable development.

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FIGURE 2: LEED categories (Source: USGBC).

Construction

â&#x20AC;&#x2DC;cart before the horseâ&#x20AC;&#x2122;, where the industry is setting the standard for sustainable construction and design rather than the government. Approximately half of the Fortune 500 companies have built or are building green buildings, and have also been incorporating rating systems into their corporate governance programmes. If Ireland is to promote this country as a good place to do business and attract investment, we must not only embrace these policies but also train our professionals and contractors in green building methodologies and rating systems.

Green building rating systems To address environmental assessment methods it is necessary to address what constitutes a green building. One construction professional or contractor might envisage a green building to be one that promotes energy efficiency, while another might see green building characteristics encompassing energy efficiency, water conservation and natural ventilation. No one document or organisation owns the definition of sustainable design and construction, or has the authority to police it. However, BREEAM from the BRE in the UK, LEED from the USGBC, Green Star, which originated in Australia, and the German rating system DGNB, are among the most prevalent rating systems used internationally. Categories in these rating systems and considerations common to a number of other best practice calculation methodologies in sustainable construction are determined to be: minimisation of pollution; reduction in the consumption of natural resources; reduction in energy consumption during material production; construction and use; and, the creation of a healthy, comfortable space to live and work. This article will briefly outline the LEED system, not because it is necessarily best practice or more widely used than any other rating tool, but rather because the author was trained as an LEED Accredited Professional (AP), and much of the methodology and practices in LEED are similar to other rating tools.

LEED programme was launched in 1998. The programme has evolved through the years and now includes rating systems for individual building types, such as: LEED for Core and Shell; LEED for Existing Buildings; LEED for Homes; and, LEED for Commercial Interiors. The credits change to suit the construction type in each LEED system, but the focus on the five major LEED categories remains the same. These categories are: 1. 2. 3. 4. 5.

Sustainable sites. Water efficiency. Energy and atmosphere. Materials and resources. Indoor environmental air quality.

Opportunity Society of Chartered Surveyors Ireland members can guide prospective clients in gaining an accredited green building rating.

Each category is further broken down into a number of credits, and points are allocated on the basis of compliance with individual credits. The overall point rating determines the level of the LEED standard attained. There are four levels of LEED certification, as shown in Figure 3: Certified; Silver; Gold; and, the highest standard, Platinum. To maximise efficiency and a greater prospect for a higher rating, it is important that an LEED AP is involved in the design process and guides the client and the design team through the process. First the assessor must register the project with the USGBC. As the design and construction progresses, the LEED AP will track changes and provide documented evidence that each credit has been met. Once the project is complete, the documented evidence will be submitted for verification to the USGBC. The USGBC provides the design team with resources, such as checklists and templates, to assist in standardising and streamlining the process.

Leadership in Energy Efficiency and Design LEED is an internationally recognised green building rating tool, providing third-party verification where a project was designed and constructed using strategies aimed at improving performance across a number of sustainability matrices. The system was developed by the USGBC, which was formed in 1993. The first

Conclusion There are a number of LEED APs in Ireland and many more BREEAM assessors. These assessors come from a wide range of disciplines in the industry. Many LEED APs in the US come from a background in construction cost management, assessing each credit and point in line with its impact on the buildingâ&#x20AC;&#x2122;s whole life cycle cost. An opportunity exists for Society of Chartered Surveyors Ireland members to guide prospective clients in gaining an accredited green building rating from LEED, BREEAM or any of the rating tools outlined above. Quantity surveyors are particularly well placed to offer this type of advice, as they can advise on green building attributes and associated credits while possibly giving the client an indication through life cycle cost analysis of the system or buildings payback and return.

Dermot Kehily Dermot is a lecturer in Construction Economics and Management, DIT. FIGURE 3: LEED certification standards (Source: USGBC).

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

Construction

The

great reformer The UK Government appointed Paul Morrell OBE as its Chief Construction Adviser in 2009. Speaking to PAUL O’GRADY, he says it’s a “spectacularly difficult” job, but believes that the construction industry can design a better future (even though he’s worried that sounds corny).

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Construction

Paul Morrell says that he was born dissatisfied, although a recollection from his youth indicates nurture as well as nature was at work. When returning his father’s boat after a summer of sailing, Paul would ensure it was immaculate. It was a matter of pride. Unfailingly, his father would find the only hinge that hadn’t been oiled. Paul says that in his life in Davis Langdon, where he was a partner from the age of 27 until his retirement in 2007, he would always start from the point that the status quo wasn’t good enough. As the tough times take hold in the UK, he is firmly of the view that better buildings can be delivered at 15-20% less cost. Now the UK Government’s Chief Construction Adviser, his mantra is: less carbon and less cost. “We already know how to do it but we keep starting from scratch. We come to projects both fresh and fragmented. It’s a bit like the effect of the waves on pebbles on the shore every time the tide washes in and out.” Paul is on a mission to change the way the industry does its business. He sees a very powerful status quo at work in the design, construct, operate model and, of course, that affronts his desire for a better way. “We need to change the proposition. It needs to say: ‘here is an offer where we know what it looks like, we know it does the job, we know what it costs and we know what it costs to run’ . That’s a very powerful proposition but it doesn’t naturally come out of the design, construct, operate model. It needs clients to change the way they buy; and industry to change the way it sells. The Government is probably the only client with enough mass as a single purchaser to influence behaviour on the supply side. And it’s not a simple reversal of the model. Between the two approaches is a genuinely integrated and parallel way of working which uses skills from deep inside the supply chain.” Morrell is convinced that the answers lie in integration and communication but that the culture of an industry founded on Victorian relationships of master and tradesman, and of rivalries between competing professionals, is a barrier to that change. “For the first 35 years of my working life, the master/servant positions were very clear. Most contractors thought most architects were tossers; and most architects thought most contractors were villains.” However, he sees that is changing and that through private finance initiatives (the UK equivalent of what are known in Ireland as public private partnerships) architects and contractors have found it’s not such a bad thing working together. “For enlightened architects and contractors, the effort now goes solely into better buildings.”

Morrell is convinced that the answers lie in integration and communication but that the culture of an industry founded on Victorian relationships of master and tradesman, and of rivalries between competing professionals, is a barrier to that change.

The Morrell view on… …the downturn as a catalyst for change “Had I stepped into this role five years ago I would not have succeeded because everyone seemed to be succeeding. The industry was busy, the Government had plenty of money, and so there was no impetus for change.”

…the effect of the downturn on relationships “Government has to build but it hasn’t got any money. Industry wants to build but it hasn’t got any work. That is the foundation for a collaborative relationship where we say: ok, how can we help each other?”

… carrot rather than stick “The one powerful agreement we have in Government is that if we can build schools for 20% less, that money stays in the industry. That money stays in the construction programme. It’s important that there is no punishment for doing better.”

… respect for construction “I asked the Director General of the Department of Business Innovation & Skills why is the industry so under respected inside Government? I can boil down his answer to: ‘It just doesn’t look like an industry that has a plan for its future’.”

…looking forward “Construction is very reactive to demand – it could never have invented the iPod. So, in a way, we need iConstruction.”

…building information modelling “I think it will be transformative beyond our current imaginings – I really do – and in ten years there will be business models that are unrecognisable from what we do now. And it will be international.”

…communication with Government

Tough times We need to change the proposition: clients need to change the way they buy and industry needs to change the way it sells.

“What is the structure by which you develop a shared agenda which has heft across Government and the whole of industry? And I am not sure that I know the answer. So I have not succeeded in designing the future beyond my tenure but it will be a big part of the conversation from here on.”

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Construction

Making a plan for prudent reform Communications between Government and the construction industry can be difficult. Paul’s view is that communication seems to work best around specific projects, so he converted his plan for prudent reform of the industry into a project. The strategy is to engage everyone through a shared understanding of what the problems are and these are articulated as: n fragmentation; n silo-based thinking; n a lack of integration in planning and execution; and, n fractures in the value chain. He has found some tedious arguments against reform in the form of institutions wanting to cling to their roles, but mostly there is consensus around the common ground of problems to be solved. “Preaching and shouting in this environment doesn’t work. We need to reward new behaviour and the most obvious reward the Government has got is a body of work.” So is the UK Government – and by extension, its Chief

Power and politics in the construction industry Paul Morrell was born in Yorkshire, grew up in Lincolnshire and went to boarding school in London. He has two sisters, but was the only boy in the family, being the son of David and Joan Morrell. His father was a quantity surveyor who went into civil engineering contracting and was, it is evident, a huge influence. David Morrell worked all his professional life with Mitchell Construction until they went bust as a result of one project in Africa – the Kariba Dam. He mentions that his father wrote a very good book about that project. It was entitled Indictment: Power & Politics in the Construction Industry, perhaps giving a clue to Paul’s later drive for collaboration and a better way of doing business. After school he wanted to do a gap year, but his father sent him to work on Fawley Power Station for a year before he started college. The trade-off was a year spent sailing to, around, and back from the Carribbean after graduation from the College of Estate Management from which he qualified as a quantity surveyor. He joined Davis Langdon, was a partner by the age of 27, and stayed with them until he retired in 2007. In 2009 he was appointed as Chief Construction Adviser by the Government, a role which he will hold until December 1, 2012. In the early- to mid-’seventies, Paul and his friends were some of the few English visitors to the south west of Ireland. As a result, he has a very warm but also well-rounded view of Ireland. Part of the reason for those trips was golf, which he still plays occasionally. However, his time is at a premium because in addition to his Government role, he also serves as Chairman of the Siobhan Davies Dance Company (he likes contemporary dance), is a board member of the Royal Shakespeare Company and he and his wife, Shirlie, have an enthusiasm for opera.

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Construction Adviser – succeeding in the process of changing the industry? “We have agreement on the diagnosis element: we agree on the problems we are facing. We have agreement and support on the prescription: those things that we need to do to fix the problems. We are now approaching the litmus test: implementation.” Paul’s experience of the industry leads him to be very wary of this stage – and of the unbelievable power of his old nemesis, the status quo. “We have a legacy of the old ways in how we do our business, and in the nature of the relationships we maintain. The test now is: will behaviour change to align with our new strategy, and allow the implementation of a new way of doing business?”

Leveraging value for a political win To show good faith, the UK Government has committed to publish the pipeline of business that it is conducting, and the stage that each project has reached. It is to contain every construction project for every Government department. Part of that process is to get departments to be cost-led, in a new way. As Morrell explains: “Government needs to buy whole-life value at less capital cost. For a political win, you must show that you built that school for less.” In order to achieve that, every department needs to undergo a benchmarking process. So far, only “two or three” of the departments have completed benchmarking and really know where their money is going. The rest have to have it completed by the end of autumn. “And, as a taxpayer, before you gave some more money to a department, I think you would really prefer to know where the last lot went. Then if you know what you can pay for a school and you know that you can get a good one, you can get it right: the right product at the right price.” The next step is trialling the new way of working with some projects. These, says Morrell, will have integrated teams, challenged by benchmarking, working collaboratively and not allowed to throw away whole-life value. “And I think the industry will judge whether we really mean business in terms of change by whether we come up with a sufficient volume of projects where we are trying new things.”

Getting to the tipping point Paul Morrell also believes that another real test lies in staying with a new way of doing business until you reach the great tipping point. And that allows for the fact there will be many parts of the industry that will continue to carry out a multitude of small private projects in exactly the same way that they have always worked.

“The Government is probably the only client with enough mass as a single purchaser to influence behaviour on the supply side.”

Construction

“…most contractors thought most architects were tossers, and most architects thought most contractors were villains.” “What we’re trying to do, in reality, is being done in bits: some jobs have got their cash flow right; some are using building information modelling; some are using collaborative teams. It’s a case of bringing that all together and then the projects that go that way have to show better results because politicians, who are the guardians of taxpayers’ money, have to be able to show that they are making it go further.”

Being the Chief Construction Adviser So why hasn’t there been a ‘you’ before? “I have to say from the inside, it is a spectacularly difficult job. The worry that was expressed to me by the Director General of one of the departments I work with, was that they were not great believers in the intention of the role. They thought either someone would

be a loose cannon without an understanding of how things work in Government, or they would be ineffective. It would be very easy to be a loose cannon but that doesn’t work. It helps to have come from a partnership because the underlying understanding was that life is a negotiation. The cry has always been for a construction minister, but I asked where would they sit? There are 17 Government departments with different pressures and different plans. So it’s a difficult balance between being helpful to departments and having sufficient mechanisms for having decisions made.” Despite all of that, he believes that collaborative efforts are bearing fruit through the strategy for agreed prudent reform of the industry and says: “Corny though it sounds, we can design a better future for the industry.”

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Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

Land

DAVID COOK and REMCO KLEINLUGTENBELT describe the use of a robotic total station system in the construction of an underground railway in Amsterdam.

Robots in

Amsterdam

Successful collection, management and dissemination of monitoring data are of vital importance on many construction projects. A breakdown in the process can result in programme delays, additional costs and possibly structural failures. For successful implementation it is necessary to plan and instigate an appropriate monitoring system at commencement of the works and to manage that system, in all its aspects, throughout the construction period and often beyond. A new 3.8km underground railway, with three cut and cover stations, is under construction beneath the historic inner city of Amsterdam, as part of the new Noord/Zuid Metrolijn. Working in fine sands below the water table places high demands on settlement control, as does monitoring of historic structures – some 1,200, including the Royal Palace – and modern prestigious buildings that are potentially affected by the works.

Monitoring periods used on the project n Base – background monitoring for a minimum period of 12 months prior to construction at any particular location, to determine natural settlement behaviour and seasonal movements. Due to various non-monitoring-related items this period extended to three years on the station sites and seven years on the running tunnels. n Process – construction monitoring. During tunnelling this consists of moving ‘windows in plan’ centred on the face of the tunnel boring machines. n Close out. Post construction, this is intended to extend up to 12 months from the last local construction or until constructionrelated movements can be demonstrated to have ceased. On Running Tunnel 1 it has been possible to cease close out monitoring, at some locations, three months after tunnel construction.

Instrumentation It was important that the monitoring system, once installed, should minimise disruption to the urban environment and a comprehensive robotic total station (RTS) system, backed up by precise levelling, was selected to monitor above ground movements. Primary instrumentation comprises: n at peak, 84 RTS, installed on key building facades and stand-alone columns, taking readings from 7,500 prisms on over 1,200 buildings, bridges and quay walls, and reflectorless ground surface readings along the tunnel centre lines. As many of the RTS are located within the construction zone of influence, they need to operate in groups; n over 2,000 ground levelling monitoring points, along the tunnel trace; and, n remotely monitored sub-surface instruments (inclinometers, extensometers and piezometers) installed to 4km of boreholes. Given the depths of the tunnels, it has been necessary to construct a number of these boreholes to a depth of 75m to reach the third sand layer.

FIGURE 1: Noord/Zuidlijn underground trace.

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Challenges of setting a monitoring base in an environment where most surface structures are settling naturally In determination of the existing (background) movements, the base phase monitoring data has been used to analyse various environmental influences such as seasonal-related movement and quantification of background settlements for individual structures, a known natural effect in Amsterdam.

Seasonal influences It is a recognised fact that buildings are sensitive to temperature changes. The movements that have been occurring for many years often only become a concern when they are measured and can be quantified. The example in Figure 4 presents temperature and the monitoring data for three RTS prisms over a period of three years. The vertical displacements of the building correspond well to the temperature trend line.

FIGURE 2: Robotic total station (RTS) set-up.

FIGURE 3: Construction at Ceintuurbann station.

Land

Background settlement Amsterdam is currently sinking by between 1mm and 3mm a year, depending on locality, and it is vital for the project to carry out background monitoring so that it is not incorrectly attributed with deformations due to naturally occurring movements. Allowance for these movements can then be deducted from the readings recorded during construction activities to determine the actual construction effects. In order to understand the effects, it should be noted that there are two background settlement mechanisms at work: surface settlement and buildings settlement. Monitoring data is collected from extensometers and RTS in conjunction with precise levelling and deep datums to determine the magnitudes of these movements: n the precise levelling deep datums are founded in the third sand layer, beyond the construction zone of influence; n extensometers are founded in the third sand layer and monitor the displacements of the surface, the first sand layer and the second sand layer; n the RTS groups use prisms, attached to stable buildings outside the construction area, as reference targets. These system reference targets are checked on a regular basis against the system of precise levelling deep datums; and, n precise levelling is performed to deep datums, extensometer heads, building levelling points and common prisms/levelling points. The background settlements recorded are approximately 1-2mm a year, which correlates well with historic results.

Lessons learned from use of non-prism mode (reflectorless) RTS taking ground surface readings in a busy urban environment When monitoring on Noord/Zuidlijn was first implemented, reflectorless RTS were not sufficiently accurate and a combination of RTS with prisms to buildings and precise levelling points at 15m centres along the tunnel centre lines were installed. In the interim period technology advanced such that reflectorless RTS could be used to measure ground surface settlement to the accuracies required; this technology has been installed.

n When taking reflectorless readings RTS view along the same sightline as originally set up, i.e., horizontal and vertical angles of that line of sight remain fixed. The instrument cannot re-centre itself on the original spot on the ground (in the way it can on a prism) so will, as the ground settles, view a point on the ground that is further away, potentially indicating horizontal movements in addition to vertical. Given the small settlements predicted on Noord/Zuidlijn, a linear approach, accepting this apparent horizontal offset, was chosen. n There is a potential for jumps in readings when instrument types are replaced at the same location. n The angle of attack of RTS to the ground is important. The higher the RTS, the better to avoid ‘glancing’ readings off the ground surface at the reading range extremity for that instrument. n Wet conditions (such as pooling water) can result in no readings being taken. n Frequency of readings can be considerably enhanced compared to manual precise levelling. When the monitoring contract commenced, precise levelling readings were proposed three times a day, at 15m centres, within a moving TBM ‘window’. Using RTS this has been increased to hourly readings at approximately 4m centres. n Surveyors need to go on site less and the number of tunnel centre line points located in the roads, requiring manual reading, has reduced, making data collection safer. n There is a disadvantage when close out monitoring takes place. The reflectorless instruments need to remain in place rather than be recycled immediately to elsewhere on the project. This is because there is no physical spot for precise levelling to return to. This article is an extract from a paper by David Cook, et al. ‘Amsterdam – Noord/Zuidlijn: The Largest Settlement Monitoring Project in Europe’. Underground Construction 2011.

David Cook David is a Monitoring Specialist with Dienst Noord/Zuidlijn (DNZL) and Mott MacDonald.

Lessons learned specifically related to reflectorless RTS n Maintenance of line of sight for monitoring ground surface settlement is a greater issue than with prisms, which are generally installed at first floor level or above. It has been necessary to perform site surveys to determine shadowed areas where manual levelling continues to be required.

FIGURE 4: Comparison of prism movement and temperature over three years.

Remco Kleinlugtenbelt Remco is Assistant Contract Manager – Monitoring, Dienst Noord/Zuidlijn (DNZL) & Witteveen + Bos Consulting Engineers

FIGURE 5: Monitoring instrumentation used to determine background movements.

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

Land

Four green fields ANN-MARIE HARDIMAN spoke to Society members to get a snapshot of land transactions and prices around the country. As everyone knows, the Celtic Tiger led to unprecedented land prices in rural Ireland, but the crash brought prices tumbling down again, and they are now a fraction of what they were at the height of the good times. However, this is not necessarily bad news, as new values are offering a better deal for farmers, especially in the context of the recent upturn in the farming sector. According to Shirley Busteed, Property Editor at the Irish Farmers Journal, prices have fallen by approximately 40% since the highs of 2007. Research by the Journal has found that the average price nationwide for the first six months of 2011 was approximately €9,200 per acre, a far cry from the €20,000 average of four or five years ago. It is, however, an improvement on last year’s national average of €8,700. “Supply has tightened, but there is good demand,” says Shirley. “At the moment there is a hint of an increase, even of a return to confidence.”

Meath John Harrington of Smith Harrington Auctioneers in Navan says that there are transactions taking place, with good farmland selling at an average of €10,000 an acre. He has overseen a number of sales recently and perceives a good level of demand: “For 200 acres of good farming land, there is plenty of money to buy; we have several clients looking [to buy land] who have finance in place”. Larger tracts of land are proving more attractive to buyers, both for expansion of farming operations and as an investment in these difficult times. Smith Harrington deals with about 15,000 acres in lettings per year too, and John says there is great demand for tillage and grazing land. Farming is enjoying more prosperous times, and both grain and milk prices are up. This is reflected in prices, with good land fetching €160 to €170 an acre per season. For the future, John sees uncertainty in Europe regarding payment schemes, world prices, the weather and the economy as the main factors that will affect the market. He feels confident, however, that farming will remain viable, with global demand for food increasing, and prices remaining buoyant. “If a decent farm comes up, there’s always a buyer”.

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In Shirley’s view, €8,000 to €9,000 an acre is still a high price, particularly for young farmers starting out. “A relatively small farm of 50 acres could cost €400,000 – how could you get that money, particularly at the moment?” The buyer demographic has changed radically too. During the boom, buyers ranged from investors, farmers and developers to couples looking for land with planning permission on which to build a home. Nowadays the market is far more local, and buyers are more likely to be farmers, or those with a farming background investing in land. There has also been some renewed interest from overseas – the US, UK and Europe. Local factors do play a part – land is more likely to sell in an area mainly populated by full-time farmers – and access to funding is still a major barrier. So bearing these national figures in mind, how are things going around the country?

Carlow For John Dawson of Dawson Real Estate Alliance in Tullow, Chair of the Rural Professional Group of the Society, land mobility is a major issue. He feels that tax incentives, such as favourable stamp duty for younger farmers or reform of tax reliefs, are needed to enable movement in the market. Prices have been exceptionally good in the south east, but worldwide shortages create volatility, and rising running costs such as oil and fertiliser prices affect farm incomes. The majority of the transactions John has dealt with have been for relatively small amounts of land, ranging from 10-70 acres. The price now is a “farmer’s price”, averaging €8,000 to €10,000 per acre, although good land will reach up to €13,500. John is seeing a certain amount of leasing, approximately 4,000 to 5,000 acres a year, with grassland reasonably constant at €150 to €200 per acre. He anticipates that prices will be much the same for the new season. Like many of his colleagues, he sees the current uncertainty in Europe as a major barrier, with factors such as the end of quotas in 2014 playing a large part in decision making. However, he believes that land values will increase because it is considered a sound investment. “Land is the safest bet after gold and silver – it’s safe and will always be there.”

Land

Cork Things are also reasonably positive in Cork, where the Surveyors Journal spoke to Joe McCarthy of Cork company Irish and European. “There are transactions taking place but there is a scarcity in the Cork area of bigger, viable holdings, which we would consider to be 150-200 acres.” According to Joe, in the Cork area a viable holding with a good yard and/or a good house might get €12,000 upwards, even going as far as €15,000 an acre for exceptional land that ticks all the boxes, including, of course, good entitlements. Smaller holdings with a good yard or house can reach €10,000 to €12,000, whereas marginal land is more likely to be priced at €7,000 to €9,000. According to Joe, farmers who sold development land near major towns and cities have money to buy, and with agriculture in such a good position at the moment, the progressive farmer of dairy or tillage will always want to expand. Joe says that there is not a lot of leasing in his area. “There are some three- or five-year leases, but people prefer to buy.” For the future, he feels that those intending to stay in agriculture will need to expand, with an emphasis on larger units, cost control and greater output.

Waterford Margaret Harty of Harty & Company Auctioneers in Dungarvan is also experiencing a reasonable amount of transactions. “There is an interest in land at realistic prices.” Sales are averaging at €6,000 to €12,000 an acre, with a little more to be made for very good quality holdings. Location is a big issue too – farmers looking to expand will compete for land close to them. “We have very good dairy farming in this part of the world, and in expansion, land is a limiting factor, so demand and location are very important.” Harty & Company does quite a bit of leasing, and Margaret says there is huge demand at the moment, far outstripping supply. Owners are waiting for news from Europe regarding the setting of a base year. “Even land with no entitlements attached to it can be leased for a premium,” she says. “People have pulled back from putting land on the lease market.” This means that prices average from €175 to €200 per acre for good land with farm buildings. Margaret feels that the overall outlook is very positive. This has to be tempered with caution, however, as inputs are rising and this is something that farmers cannot control. She sees more leasing in future as the Irish attachment to land becomes even more pronounced. “If you’re making a living from leasing, why sell?” As far as financing is concerned, she says that there seems to be some facility from banks, but only if the farmer has a deposit and a detailed business plan.

Galway Finally, we went west and spoke to Austin McInerney of McInerney Auctioneers in Gort, who says that the average price agreed there at the moment is about €7,000 to €7,500 per acre. Austin feels that this is a fair price for farming. “Farming is now a more profitable venture – farmers can make profit sooner than before, and if they own they can also apply for entitlements.” It’s a far cry from the heady days of 2006 and 2007, when land could fetch €33,000 per acre, and Austin feels that some landowners, particularly those who are not farming, have some difficulty in accepting the new situation. They are holding out in the hopes of achieving values that are simply not attainable now. As is the case elsewhere in the country, Austin says that local

factors are important. Farmers will travel to buy land if it has the facilities that they require. Austin has a lot of leases on his books: over 200 lots in fact, making them one of the largest agencies in the country. In addition, many farmers arrange leases themselves. He feels that once again, the traditional reluctance to sell land is at the root of the high number of leases. For the future, Austin feels that it’s a guessing game: “Nobody knows – we’re all guessing and some get it right. If entitlements are cut, that will affect values. Farmers can make a profit now with land at current prices, but if land goes up that may change.” He says that banks will lend if a farmer has proper accounts all in order.

We’ll leave the final words to Shirley Busteed of the I FJ : “It’s all about the quality of land – good dry land, in a good location. If land is priced correctly it will sell”.

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

Property

JENNIFER DEMPSEY explains the implications for vendors and purchasers of compulsory registration.

Registering title

There are two mutually exclusive systems for registering title in Ireland: the Registry of Deeds; and, the Land Registry. Both are now controlled and managed by the Property Registration Authority. Confusingly, land registered in the Registry of Deeds is stated to have “unregistered title”, while land registered in the Land Registry has “registered title”. The most notable advantages of registering title in the Land Registry are: n the title shown on the register is guaranteed by the State. The Land Registry must indemnify any person who suffers a loss due to any registration mistake it makes. In contrast, solicitors must read title deeds to establish title to unregistered land and the expertise of the solicitor is relied upon in this respect; n the title is identified by reference to a map. It is not unknown for unregistered land to have no map with the title deeds, particularly where urban addresses are thought to sufficiently identify a property; and, n the register is now maintained electronically and is available online. This allows instant access to certain title information and facilitates online searching and application filing.

What is compulsory registration? Compulsory registration is a legal requirement to register title to land in the Land Registry. Title to land is

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compulsorily registrable if acquired under specific legislation, or if acquired by a statutory authority, after January 1, 1967, or if the land is located in a specific area when purchased. Where land is compulsorily registrable, title to it must be registered in the Land Registry within six months of acquisition in accordance with the Land Registry rules.

Why is compulsory registration so topical? The extension of compulsory registration reflects an ongoing policy on the part of successive governments to move land registration away from the limited Registry of Deeds system and towards registered title and, ultimately, wholly electronic conveyancing. The acceleration of compulsory registration in recent years results from the recognition by government that an efficient property registration system contributes to economic progress and competitiveness. Prior to 2006 the only areas designated where titles to land were compulsorily registrable were the counties of Carlow, Laois and Meath. Since then, compulsory registration has been extended to all counties in the State, to include, as and from June 1, 2011, Dublin and Cork.

Protection

The Land Registry must indemnify any person who suffers a loss due to any registration mistake it makes.

Property

Complex buildings such as multi-unit residential or commercial developments will require detailed maps, which can take some time to develop and agree with the Land Registry.

reasonably able to supply, and to produce any documents in their possession that may be required to effect first registration. The purchaser might also ask the seller to have the map pre-approved by the Land Registry to ensure that no registration delays arise due to mapping issues. This is a relatively quick and straightforward procedure attracting a nominal Land Registry fee. It should be noted that complex buildings such as multi-unit residential or commercial developments will require detailed maps, which can take some time to develop and agree with the Land Registry.

How does compulsory registration affect property transactions?

What are the implications of failing to register compulsorily registrable title in the Land Registry?

Compulsory registration for all counties means that as and from June 1, 2011, where “unregistered” land is purchased (and, in some cases, leases are entered into), the purchaser’s solicitor must make an application to the Land Registry for first registration of that “unregistered” land within six months of acquisition in accordance with Land Registry rules. The Land Registry must investigate the title and be satisfied with the application map, and is likely to ask the purchaser’s solicitor for updated searches against the property and the purchaser prior to the registration being completed. The seller of the “unregistered” property must give the purchaser a map of the property that complies with Land Registry rules, and they are likely to be asked, within two years of completing the sale and at the cost of the purchaser, to give the purchaser an undertaking to provide any additional information which the seller is

Until registration is complete, the purchaser does not have legal title to the property. This will affect dealings with the property, such as future sales and offering the property as security. However, once registered, the purchaser is deemed to have acquired legal title from the date of its purchase deed as opposed to the date of actual registration. Accordingly the solicitor’s role in a purchase of unregistered land now extends to the registration of that title, which can unfortunately take some considerable time to be dealt with by the Land Registry.

Jennifer Dempsey Jennifer is an Associate in the Property Department of Arthur Cox Solicitors in Dublin.

Volume 1, Number 4, Winter 2011 | SURVEYORS JOURNAL |

The last word

Unfinished housing developments John O’Connor of the Housing Agency says that there have been improvements in the situation regarding unfinished developments in Ireland. Unfinished housing developments around the country are of serious national concern. Improving the living environment for the residents in these developments and for the wider community is at the core of dealing with this issue. It is also critical from the economic perspective that we resolve the issues in these developments as soon as possible. This situation requires all parties to co-operate and to focus on resolving these developments in a pragmatic and realistic manner.

National Housing Survey 2011 During the summer, the Department of the Environment, Community and Local Government carried out a second National Housing Survey of all unfinished housing developments in Ireland. This survey provides an update on the first survey, which was conducted in 2010. The survey was conducted by the Department’s Housing Inspectorate, in co-operation with local authorities and site owners. Its results are a snapshot of the current status and a way of measuring progress on this issue. A total of 2,876 housing development sites of two or more dwellings were inspected as part of this survey. Of these, 701 are effectively complete and a further 109 have not started any substantial works, meaning that there are 2,066 unfinished housing developments in the country.

Vacant housing – number of dwellings: n 18,638 dwellings were recorded as complete and vacant – this shows a 20% reduction on the figure in 2010; n 8,794 dwellings were recorded as near complete; n 7,343 dwellings that were vacant in 2010 are now occupied – this represents a 9.4% increase; and, n 17,872 dwellings are at various stages of construction – 8,794 of these, or almost 50%, are nearly complete. In general, the results show that there was a focus on finishing and renting/selling properties that were complete or nearly complete. The key finding shows progress over the year, with the number of complete and vacant houses decreasing by 20% to 18,638. A further 8,794 were recorded as near complete. The results also demonstrate that the level of active sites has decreased by almost 43%. The complete data from the survey and associated maps are available on www.housing.ie.

Further information Stakeholders Code of Practice The Housing Agency and the Department of the Environment, Community and Local Government has prepared a ‘Stakeholders Code of Practice’. This Code is to be applied by developers, financial institutions (including NAMA), local authorities and residents in working together to resolve unfinished housing developments over time.

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The key finding shows progress over the year, with the number of complete and vacant houses decreasing by 20% to 18,638. A further 8,794 were recorded as near complete. Guide for Residents Living in Unfinished Housing Developments A ‘Guide for Residents Living in Unfinished Housing Developments’ was also prepared to help those who are affected by unfinished housing. It outlines practical steps that residents can take and provides residents with relevant information about what is being done and what the resolution process is. The Guide encourages people to get active with their neighbours to set up a residents’ committee and to come together to evaluate their estates. A checklist is included in the guide, with steps including approaches to the developer or receiver outlining the priority issues.

Guidance Manual on Managing and Resolving Unfinished Housing Developments A ‘Guidance Manual on Managing and Resolving Unfinished Housing Developments’ was prepared by the Department of the Environment, Community and Local Government and the Housing Agency. The purpose of the Manual is to support the delivery of sustainable communities and Government policy in relation to proper planning and sustainable development by supporting the restoration of confidence in the housing development sector and by identifying effective mechanisms for resolving issues that have arisen with particular unfinished housing developments. All documentation is available on www.housing.ie/unfinished. Housing Agency 2nd Floor, Cumberland House Fenian Street, Dublin 2 Tel: 01-656 4100 Email: info@housing.ie www.housing.ie

John O’Connor John is Chief Executive of the Housing Agency.

Legal issues

In a recession claims tend to increase against professionals, whether they are solicitors, accountants, surveyors or valuers, says TARA COSGROVE.

Liabilities to third parties In the current climate, the professional, who should usually have professional indemnity insurance, is unfortunately seen as a very attractive target. In considering any claim, a court will consider a number of elements: (i) the existence of a duty owed by the defendant to the plaintiff; (ii) whether there was a breach of that duty; (iii) whether there was a loss suffered by the plaintiff; (iv) the cause of that loss and whether the defendantâ&#x20AC;&#x2122;s breach resulted in loss to the plaintiff; (v) if the plaintiff is guilty of negligence and/or breach of duty, and to what extent the plaintiff caused or contributed to their own loss and damage; and, (vi) what damages, if any, the plaintiff is entitled to recover and how such damages are to be assessed.

Claims in contract A large proportion of claims brought against professionals are brought in contract and by clients with whom the professional has a contract, whether oral or written. Professionals agree to perform particular tasks as agreed. It is either an express or an implied term of the contract that such professional services are carried out with reasonable care and skill. Contractual terms are always the starting point in the consideration of the scope of any duty and form the basis of any claim. It is essential that the terms used are appropriate for the tasks being carried out.

Claims in tort The existence of a contract does not however necessarily limit the liability of a professional to breach of that contract. Duties may be owed in both contract and tort, and the duty in tort may be wider

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than the contractual duties and extend to a wider class of persons. A court will consider all of the circumstances of the arrangements and consider whether or not, as a professional, you have assumed responsibility for the advice provided or the services given so as to render the professional liable in tort. In particular, liabilities can extend to those with whom the professional does not have a contractual relationship, such as third parties. There are a number of examples where we have seen this happen, including the case of Smith v Bush in the UK, which was decided by the House of Lords in 1990. In this case, a valuer had been retained by a building society to value a property that was being purchased by the plaintiff. The retainer was to carry out a valuation report and the plaintiff received a copy of the report, which said that no essential repairs were required. There was a disclaimer of liability concerning the accuracy of the report, but despite this the plaintiff asserted that they relied upon this report in their decision to purchase the property. The House of Lords held that the valuer was liable to the plaintiff and that the disclaimer was ineffective as it breached the terms of the UK Unfair Contract Terms 1977.

Contractual terms are always the starting point in the consideration of the scope of any duty and form the basis of any claim. It is essential that the terms used are appropriate for the tasks being carried out.

Legal issues

A recent UK Court of Appeal case of Scullion v Bank of Scotland Plc (t/a Colleys) has, however, distinguished between buy-to-let investors and an ordinary householder. The Court of Appeal in this case found that the buy-to-let purchaser had failed to establish foreseeability or a sufficient degree of proximity between himself and the surveyor. Moreover, the claimant’s case failed on the ground that it was “not just and equitable” for the surveyor to be liable to the purchaser for any damage suffered as a result of their negligence in assessing the rental value of the flat when preparing and submitting a report to a lender. The court distinguished the case from the earlier case of Smith v Bush, which had involved an “ordinary householder purchasing his home”. This case provides welcome news for valuers and their insurers in the UK. Despite expressions of sympathy for the claimant, the Court of Appeal refused to extend the duty of care in mortgage valuation cases beyond the restricted class of those buying modest properties. It now appears that surveyors in the UK will not, at least for the present, when providing valuations to lenders, owe a duty of care in tort to buy-to-let or other commercial property purchasers. Whether this is followed here in Ireland remains to be seen.

Risk management Against this background, it is important to consider adopting the following as part of your risk management strategy: n set out clearly in writing to your client the instructions given to you and have them acknowledge the scope of the instructions, together with the terms of your engagement; n if you are asked to provide complicated advice within a very short space of time, it is advisable to outline the timeframe, the limitations upon the time, and to qualify that your advice could change if further time or information was available;

n in your engagement letters and/or terms of appointment, put in place safeguards to X X minimise the exposure X to potential third parties X where at all possible; n qualify any limitations in your reports to avoid the assertion that you have accepted a responsibility to third parties with whom you have no direct contact. You should consider for example a statement that your work is not intended for any other purpose or for the benefit of any recipient other than the recipient for which it was prepared. Where appropriate, you should also disclaim liability to any third party and any known or unknown third parties, and state that if any third party may seek to rely on the report that they do so at their own risk. Draft this very carefully and consider precisely what you are trying to disclaim; n consider inserting terms that would restrict your client from disclosing the report or any advice given to them unless your prior written consent is obtained; and, n if you use a disclaimer, act consistently with any such disclaimer thereafter.

Xxxxx

Tara Cosgrove Tara is a partner with Beale and Company Solicitors, who provide specialist advice and act for professionals and their insurers’ professional indemnity claims.

Volume 1, Issue 4, Winter 2011 | SURVEYORS JOURNAL |