SCSI costings report is ‘vindication’ for mica-affected homeowners, says campaigner

A mica redress campaigner has described the SCSI independent cost report published yesterday as ‘vindication’ for homeowners and campaigners.

Eileen Doherty said homeowners repeatedly stated that per square foot figures published in November last year were ‘way off the mark’ and ‘didn’t reflect the costs on the ground’.

The Society of Chartered Surveyors report provides average construction costs on a per square foot / metre basis for eight different house types, including estate type houses as well as one-off rural homes. Average rebuild costs range from €145 per square foot to €165 per square foot. These costings are for Option 1 - full demolition.

The report stated that for options 2 to 5, which are remediation options, estimates based on gross floor area are ‘unlikely to be appropriate’ and that construction costs for these options ‘will therefore be site specific’.
“A site-specific cost exercise will have to be undertaken for the specific element/area to be replaced incorporating the additional ancillary items affected from the foregoing non-exhaustive list.”

Eileen highlighted how, under the new per square foot rate given in the report, an average detached house in Donegal, based on the ‘lower scale’ given of 147 euro per square foot, is 53,000 euro ‘better off’ than it was previously.

She added that she hopes the Housing Minister will now accept the costings and added that while some matters still need to be looked at, “I think we are significantly closer to be enabling families to fix their homes and move on with their lives”.

Eileen added that homeowners and campaigners were ‘very disappointed’ in November and ‘were criticised by some that we were never happy’.

“I think the key for me is, if you go back to the end of November, we were very disappointed following the review of the working group and were criticised by people saying we were never happy, but following pushback by homeowners they agreed to get the independent report from the SCSI,” she said.

“We had a fear of how independent it would be but we have had a number of calls with the SCSI in recent weeks and we gained confidence in their independence.”

Eileen said that in other areas where there is a lack of clarity due to the scope given to the SCSI under the Terms of Reference, the expert panel on defective blocks ‘will look at that’.

She added that it is hoped the Housing Minister will accept the report and its recommendations.

The report, for which the SCSI received no payment, is based on the parameters of the Government’s Defective Concrete Blocks Grant Scheme announced on November 30, 2021 and the terms of reference of the report, including which building regulations apply, the exclusion of foundations etc.

The costings are based on pre-2008 building regulations, in line with the Terms of Reference from Government. These are costed at February 2022 material and labour rates. However, the SCSI states in the report  that  ‘best practice is to build to current regulations or to exceed current regulations’.

The report includes the costs for demolition and reconstruction, a concrete path around the house, disconnection and reconnection of utilities, making good to driveway and garden, professional fees and VAT at 13.5% on building costs and 23% on professional fees.
Costs do not include new foundations; A-rated/NZEB homes, standards, contents such as carpets, curtains, loose furniture, domestic
appliances, etc, outbuildings, garages, boundary walls, driveways, septic tanks, etc.
The SCSI said that for options 2 to 5, which are remediation options, estimates based on gross floor area are ‘unlikely to be appropriate’ and that construction costs for these options ‘will therefore be site specific’.

“A site-specific cost exercise will have to be undertaken for the specific element/area to be replaced incorporating the additional ancillary items affected from the foregoing non-exhaustive list.

“It is a matter for Government as to how such a site-specific remediation scheme could be established.”

In relation to salvage, the SCSI said the reuse of existing house components was not included in the average rebuild cost calculations, but added: ‘however, the economic and environmental benefits are worth considering’.

“Based on qualitative feedback in the preparation of this Report, it is clear that considerations for viability may differ from component to component and home to home.”

They also added that the SCSI considers ‘that for a competent professional to determine whether salvage is viable, based on a cost vs benefit analysis, several safety, economic and environmental factors need to be considered’.

The SCSI also commited to undertake an annual review of the construction costs.

Following the publication of the report, Housing Minister Darragh O’Brien said the Expert Working Group on the implementation of the Defective Concrete Block Scheme will now analyse the report and make recommendations to him on how to operationalise its findings.

The full SCSI report,can be read at https://scsi.ie/category/publications/