Surveyors JournAlvolume 8 - house of CArds - Society of Chartered Surveyors Ireland
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surveyors
JournAl
v o lu m e 8
i s s u e 4
w i n t e r
2 0 1 8
house
of
CArds
Also in this issue
sCsi AnnuAl ConferenCe
GreAt plACe to work
sinkinG funds
news
president’s messAGe Contents
n President's message 4
n Editorial 5
n Business news 6
n How to be great 12
feAture editoriAl
n House of cards 16
n State of dilapidation 18
n Ready to fly 20
n Waterford is waiting 22
n That sinking feeling 24
interview
n Conference report 26
n Society news 28
the lAst word n Surveyor profile 33
n The last word 34
ConferenCe surveyor profile
Society of Chartered Surveyors Ireland, EDITORIAL BOARD PUBLISHERS
38 Merrion Square, Dublin 2. Tom Dunne Chairman DIT Published on behalf of the Society
John Costello Costello Commercial of Chartered Surveyors Ireland
Tel: 01-644 5500 Tom Cullen Think Media by Think Media
Email: info@scsi.ie Brian Gilson Lisney
Web: www.scsi.ie Ann-Marie Hardiman Think Media Editorial: Ann-Marie Hardiman
Frank Harrington Smith Harrington Paul O’Grady
Áine Myler, Director General Patrick King SCSI Colm Quinn
Paul Mooney Benchmark Property Design: Tony Byrne
Paul O'Grady Think Media Tom Cullen
www.scsi.ie Rowena Quinn Hunters Niamh Short
Views expressed by contributors or correspondents Andrew Ramsey McGovern Surveyors Advertising: Paul O’Grady
are not necessarily those of the Society of Chartered Sarah Sherlock Murphy Surveys
Surveyors Ireland or the publisher and neither the Paddy Shine Dublin City Council LETTERS, COMMENTS AND ARTICLES WELCOME
Society of Chartered Surveyors Ireland nor the Claire Solon Friends First All submissions will be considered by
publisher accept any responsibility for them. John Vaudin WK Nowlan Real Estate Advisors the Editorial Board: editor@scsi.ie
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 3
CreAtinG A Culture
of ConneCtivity
PROFESSIONAL COLLABORATION AND SuPPORT HAS ALWAyS BEEN VITAL
FOR SuRVEyORS, AND IS KEy IN ADDRESSING THE CHALLENGES TO COME.
t he autumn has been busy as reported by many construction and property members during my travels
around the country, including a trip to Belfast to meet some of our RICS colleagues, where the impact
of Brexit was the main topic of discussion. I have also had the pleasure of meeting members at the
National Conference in Kilkenny and our other networking events.
As President, Board member, and member and Chair of Education in the SCSI for many years, I have gained a great
appreciation for the connected benefits of membership of an organisation that is home to a range of professional
disciplines. The importance of connectivity has grown over the years. We face challenging times politically and
professionally, and we can’t deny that these challenges take their toll not only on our personal lives, but also on the
everyday culture of our organisations. Together we face multiple challenges, be it the urban/rural balance, leadership
and purpose in family businesses, or perhaps most common: the challenges of building resilience in our organisations
in light of Brexit. As the saying goes, united we stand, divided we fall. In order to overcome the challenges ahead, we
must ensure that we have the best teams working with a unified sense of purpose.
you might hear a lot about workplace culture in your own interaction with employers and businesses. It has cropped
up many times at our events, be it the PMFM Conference in October, or the National Conference in November (see
page 26). The equation is simple: positive, people-focused workplaces attract the best talent, promote engagement,
maintain happiness, and lead to better and more sustainable businesses. It is even more important in our profession,
where you have multiple stakeholders and mindsets working together to achieve a complex common goal.
Focus on the regions
A fantastic example of this has been our project entitled ‘Rejuvenation of Our Small Town Centres’ (page 26). The
success of this project was dependent on collaboration between surveyors from every discipline, across every region,
on an issue that is impacting our regional communities. But it won’t just end there. We cannot put too much value or
emphasis on the importance of our regional communities and their importance to the health of Ireland as a whole.
We look forward to further engagement with stakeholders in the new year to ensure that our recommendations are
heard.
As we look ahead to the new year, we look forward to strengthening the bonds of connection across our membership,
which starts with welcoming you all to our Annual Dinner in Dublin, on January 31. The tone will be set for a year of
continued connectivity and collaboration between members for the year ahead. I would like to thank you all for your
support and contribution throughout the year and wish you a merry Christmas and a very happy new year.
STAYING CONNECTED
president’s messAGe Surveyors must continue to work
together to promote the profession and
Des O’Broin rejuvenate our rural communities.
President
4 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018
GettinG Rejuvenating Ireland’s small town centres
SCSI Report, November 2018
it riGht
WE NEED TO PLAN FOR
uRBANISED POPuLATIONS.
25%
l ike many countries Ireland is urbanising, with more and more people
expected to live in cities in future. In a series looking at urban areas in
Ireland, this winter edition of the Surveyors Journal focuses on Waterford
(page 22). Growing successful urban areas requires imagination and Waterford is
planning one of the most significant developments in its history. The plan to redevelop
the long-neglected north quays with a pedestrian bridge certainly looks exciting. Like
in many cities in Ireland, a concern for companies from abroad contemplating
54%
Online weekly shopping is on the rise, with Ireland
set to follow international trajectories.1
1966
investment in Waterford is housing for staff, and I was interested to hear from Des
Purcell that there is a strong first-time buyer element to demand but with limited
supply. Internationally, the trend is towards walkable, compact cities, easily navigable
by bikes and public transport, and the plan for the north quays should allow for this 1 SHOPPING
CENTRE
and play a part in providing the interesting urban spaces demanded by many of those
who work in high-value industries.
I was interested to read John Slevin’s piece on the Construction Contracts Act
2013 (page 16) where he notes the differences between legislation here and in the uK.
John says that certain aspects of this Act need to be treated with caution and he makes
his case very well. I am sure all construction professionals should read this piece with
2012
particular interest.
The management of multi-unit developments (MuDs) is an area where many problems
exist and where the Society has made a significant contribution by highlighting issues
and pointing to solutions. In their article (page 24), Finbar McDonnell and Kevin
212
SHOPPING
Hollingsworth point out that an MuD needs a good sinking fund and note that most CENTRES
have established one. Worryingly, however, a very large majority of agents report that
less than a quarter of these funds are adequate. As noted above, the future is urban Ireland’s first shopping centre opened in 1966. There is now
and many more people will live in MuDs. It is imperative that they are well managed 1.98 million square metres of shopping centre floorspace.2
and don’t deteriorate. Sinking funds are of critical importance to the future of MuDs
and to ensuring that the value of apartments is sustained in future.
We have to get the management of MuDs right in the interest of creating those
interesting urban areas that will attract workers.
editoriAl
Tom Dunne
Editor Source: PWC Retail Consumer Report 2018.1
Irish Shopping Centres and Retail Parks, DTZ/Sherry FitzGerald 2013.2
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 5
new direCtor At BuildinG ConsultAnCy
vAl o’Brien on the menu
FINE DINING
The Building Consultancy has been appointed designer and project manager for
1925 restaurant.
APPOINTED
Ronan Harlin (left) is congratulated by Val O’Brien on his appointment. The Building Consultancy has been appointed designer and project manager
Val O’Brien of Val O’Brien and Associates has announced that Ronan Harlin, for a new restaurant at unit 1, 13-18 City Quay. Situated under Grant
who has been with the practice for over 18 years, has been appointed as a Thornton’s recently opened headquarters, the 1925 restaurant is due to open
director within the company. In welcoming his appointment, Val cited Ronan’s in the first quarter of 2019. Director Karl O’Donovan commented: “We are
outstanding commitment and knowledge. The company is also celebrating delighted to be a part of this project. The docklands area has seen a
21 years in private practice this year, and Val says that he is delighted to have significant increase in the number and range of dining establishments. We
staff with this depth of knowledge and experience available to their broad expect the 1925 restaurant to further enhance this and contribute to the
client base. continued development of the IFSC as a vibrant dining location for the city”.
6 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018
Good news on JApAnese knotweed Ecologists from AECOM and the university of Leeds have carried out the He added that the 7m rule, although based on the best most extensive research to date assessing the potential of Japanese information previously available, was not a statistically robust tool knotweed (Fallopia japonica) to cause structural damage compared to for estimating how far the plant’s rhizomes are likely to reach other plants. underground. Now recognised as one of the most problematic weeds in the uK and Co-author Dr Karen Bacon, from the university of Leeds’ School of Ireland, Japanese knotweed is known to have a range of negative Geography, said: “This plant poses less of a risk to buildings and other environmental impacts. In the uK, it is widely believed to pose a structures than many woody species, particularly trees. Japanese significant risk of damage to buildings that are within 7m of the above- knotweed is capable of damaging built structures, but where this occurs, ground portions of the plant – the so-called ‘7m rule’ – due to its it is usually because an existing weakness or defect has been underground shoots, known as rhizomes. exacerbated”. When identified in homebuyers’ surveys, mortgage lenders often require Professor Max Wade, Technical Director – Ecology at AECOM, and co- evidence that a treatment programme is in place, entailing significant author of the paper, said: “We hope our research will inform discussions expense for sellers. The stigma associated with the plant means that around the advice currently offered about Japanese knotweed by property values can be affected, even after action is taken. providing more information about the reality of its impact on built Dr Mark Fennell, Principal Ecologist at AECOM, who led the research, structures”. said: “We found nothing to suggest that Japanese knotweed causes The researchers also found no support in the literature for the idea that significant damage to buildings – even when it is growing in close Japanese knotweed is a major cause of damage to property and, overall, proximity – and certainly no more damage than other species that are established that it was less likely to cause damage than many other not subject to such strict lending policies”. common species. 8 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018
mAlColm hollis welComes lAurA Johnston
Building consultancy firm Malcolm Hollis has appointed very excited about this new opportunity. Malcolm Hollis
Laura Johnston as a senior quantity surveyor in its is a wonderful firm, and I’m thrilled to be working with
Belfast office. The company states that Laura brings a the team”.
wealth of experience to the firm, with specialist Adrian Poucher, Belfast partner at Malcolm Hollis, said:
knowledge of service areas such as cost reduction, cost “We are pleased to welcome Laura Johnston to Malcolm
control, cost management, development monitoring Hollis. She is a fantastic candidate, and I am sure her
and building information modelling (BIM). Laura expertise in quantity surveying will prove invaluable in
graduated from ulster university with a bachelor’s our Belfast office. I look forward to seeing the positive
degree in quantity surveying. Laura commented: “I am contributions she will make to our business”.
new md of CBre irelAnd
CBRE has appointed Myles Clarke as Managing Director of its Ireland at the end of this year to take on a consultancy role within the business.
business. He will join CBRE in mid November, having been Chief Ciaran Bird, Managing Director of CBRE uK and Ireland, said: “Myles will
Operating Officer of RBS Investment Bank in London. Since leaving RBS be an excellent addition to our Ireland team. His impressive track record
in 2016, Myles relocated to Ireland and took a sabbatical to focus on in leading high-performing teams and his wealth of expertise in finance,
several projects of personal interest in the areas of finance, real estate property and technology insights, means he is ideally placed to spearhead
and blockchain technology. the growth and development of our Ireland business. I would also like to
Myles will succeed Enda Luddy, who will be stepping down from the role thank Enda for his valuable contribution to CBRE over the past six years”.
10 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018how to
Be GreAt
JOHN RyAN, CEO OF GREAT PLACE TO WORK
IRELAND, WANTS TO BANISH THAT SuNDAy
EVENING DREAD FOR ALL OF uS.
A
“
work placement with the then Dublin Gas during his business degree at DCu
taught John Ryan a huge amount about the importance of brands: “They CArinG for the heAlth
rebranded to Bord Gáis and went from ‘Sorry: Dublin Gas’, to the famous three
little bears and school kids singing the ‘50:50 cashback’ song. It was amazing to see how you can
turn a brand around, and change the customer experience overnight”.
And well-BeinG of
Now, as CEO of Great Place to Work Ireland, John wants Irish organisations to understand that
their workplace needs to be a place that their employees look forward to coming to and their your employees hAs
employer brand has to communicate that if they want to attract talent.
John says that any organisation of any size in any industry can be great, and Great Place to Work to Be ABout more thAn
interacts with over 350 organisations every year, helping them to identify the key areas where they
need to change to gain the trust that he says is key to becoming a great place to work: “Our hAvinG A wellness
assessment covers nine key practice areas [see panel]. It’s a framework that you work to: a working
definition of a great place to work from an organisational perspective as one where you achieve
your organisational objectives, where people give their personal best, and work together as a team”.
dAy onCe A yeAr
interview
Ann-Marie Hardiman
Managing Editor,
Think Media
12 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018Great Place to Work began in the uS in the
1980s and since then has spread its message
across 58 countries. Its model offers a nine-
point framework across three practice areas
that it says will help companies to achieve their
organisational objectives, in a group of people
who are able to give their personal best, while
working together as a team or family:
Listening
Being accessible for questions, suggestions,
Know thyself certification from Ireland, which will go global, and concerns.
The nine practice areas boil down to some very called Healthy Place to Work: “It’s a holistic view Speaking
practical things that organisations can do to of what health actually is, and it’s all about Providing honest and transparent
create that culture of trust. One of the most purpose, meaning, learning and development, information, empowering teams.
important is identifying what the culture of your self-efficacy, job crafting, and social Inspiring
organisation is, and feeding that into how you connections, along with the physical health Showing how everyone contributes to the
choose team members: “We say be unique – aspects we are all familiar with. Organisations wider mission.
don’t be generic. Stop recruiting people just for can support employees to be holistically
the skill set to do the job, because that should healthier and they will reap the benefits – it’s Thanking
be a given. Be honest and authentic about who the ultimate win-win”. Showing appreciation for good work in
you are and hire people who will survive and regular and unique ways.
thrive in that environment”. Be radical Caring
Once you’ve worked through what your objectives Some of the things companies are doing may Offering distinctive benefits that respond to
are as an organisation, communicating them to seem pretty radical to organisations that the needs of your team.
employees and showing them how they connect haven’t embraced this process. Replacing Developing
to those objectives, is vital: “It doesn't matter annual appraisals with ‘30:30’ (30 minutes of Helping employees to nurture their personal
what my role is, show me where it connects to focused – and mutual – feedback every 30 and professional gifts.
the organisation's purpose so that I get a sense days), or allowing prospective employees to
of purpose and meaning in what I'm doing”. interview different team managers to decide Hiring
The flipside of this is listening: “Do you know what team they want to work with, may seem Hiring people with the talents to contribute
what people are thinking, feeling and believing huge – and intimidating – changes, but John to the right culture.
about the organisation? What are the biggest says it’s practices like this that make the Celebrating
frustrations they're finding with trying to get the difference: “your relationship with your Taking time to celebrate wins in distinctive,
job done?” manager is absolutely critical”. creative ways.
Buzzwords like inclusion and wellness are very It’s about helping managers to be better too: Sharing
much on the radar for most companies these “People say ‘people don't leave organisations, Rewarding efforts of all those who play a part
days, but John says that doesn’t mean we’re they leave managers’, and that's kind of true, in delivering results.
getting it right: “Inclusion is about bringing but if we dig a little deeper we find that those
people into the decision-making process and managers aren't set up for success; we haven't us might find it terrifying: “We assume it would
giving them a voice, whereas Irish organisations given them the necessary skills”. be negative; we never think we’re as good as
still tend to make decisions and then tell people What John calls “radical transparency” is we are”.
to implement the decision”. another area that might seem daunting to say It all comes back to trust: “We talk about
He says caring for the health and well-being of the least. From Spotify, who put all staff engagement, but an employee’s engagement
your employees has to be about more than appraisals (including the CEO’s) on their with their job can go up and down on any given
having a wellness day once a year: “There is no company intranet for all to see, to project day. Trust is a much more enduring concept.
evidence to back up any improvement in teams openly scoring each other’s Our nine practice areas feed into the creation
performance by doing that sort of thing. Health performance, or salary transparency of a great workplace and a great workplace is
and well-being can be a huge driver of throughout an organisation, it’s clear that there one where you trust the people you work for,
performance, but it needs to be strategic”. is a huge cultural shift happening, but John you’ve a sense of pride in what you do and you
To address this, John is launching a brand new says it’s all to the good, even if some of enjoy the people you work with”.
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 13The method
Great Place to Work uses its established
methodology of survey, reporting, discussion and
analysis to work with organisations, and at the end
of the process, those that reach a minimum
standard gain Great Place to Work certification.
Organisations may be daunted at the prospect of
‘competing’ against multinationals and much
larger companies, but John says that’s not how it
works: “We assess all organisations around our
nine practice areas, but organisations are
benchmarked against those of a similar size so This is something construction and property Community spirit
that comparisons are appropriate. It’s not about professionals understand all too well in other John lives in Bray, Co. Wicklow, with his wife
perfection; for example, in our employee survey, areas of their work, where regulations and Kelly and three children. He loves golf and
if 70% of people believe the organisation is high standards for safety and work practices are core football (he’s an Arsenal fan). He also has a
trust, that will meet the criteria”. elements of what they do: “This is the best passion for current affairs and was mayor of
It’s a methodology that measures the whole framework you’ll ever implement, because it his local town. John is a county councillor
organisation: “It used to be the case that if the impacts on more people, helping to create a and was recently Cathaoirleach of Wicklow
organisation as a whole got a certain score they psychologically and emotionally healthy place to County Council.
could be considered a great place to work. Now, if work, as well as a safe place to work”.
the experience of the executive team versus For SCSI members, the philosophy behind Great So the physical design is hugely important”.
everybody else is sizably different it's not great; if Place to Work also has some practical So are Irish organisations taking on the message
the experience of women versus men, or people implications in terms of the services they provide that creating the right working environment
from different ethnic origins versus everybody to clients. The physical environment of the increases efficiency and productivity, and gives a
else is significantly different, it's not great”. workplace is a huge part of what makes us want competitive advantage? John says absolutely:
As recruitment of skilled personnel becomes an to come to work in the morning, and property and “Irish organisations are doing brilliantly. The
issue in many sectors, John says Great Place to construction professionals are closely involved in presence of so many international companies has
Work certification “100%” gives employers an creating and managing those physical spaces for forced indigenous companies to raise the bar.
advantage: “We know from studying organisations their clients: “We worked with an organisation that Irish companies are competing for staff and have
across 58 countries for 40 years that the ones who put barcodes on everybody’s lanyards because to up their game, so we’re doing better than many
have this employee experience that is high trust they wanted to see who was colliding with whom. other European countries. We are perceived as
are the ones that are winning in the marketplace”. And they found that everybody from sales was high trust, and as more inclusive too”.
colliding with everybody from sales, everybody This reputation in turn has a knock-on effect,
Closer to home from operations with everybody from operations, attracting more foreign direct investment (FDI)
In the property and construction sector, John says etc. They were getting no innovation across the and better employees, and John is delighted to
that many organisations still need to get the organisation, and what they found was that the have been a part of some of this success: “For me,
fundamentals in place to understand what makes physical design of the organisation wasn't driving 10 years on, I’m thrilled that it’s not only the great
a great workplace: “It’s not a nice fluffy thing on the behaviours that they wanted. So they have organisations that knock on our door; over 50% of
the side for staff – it’s core to organisational streets built into the organisation, and the streets the organisations that deal with us are a long way
performance”. are where the coffee and the food is, and that’s away from being great, but they have started on
He reiterates his point that this is a framework for where everybody happens to come. So now we're their journey to get better and we help them every
organisations to use to achieve their objectives. mixing up the organisation and it’s not all siloed. step of the way”.
14 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018house
of CArds
CERTAIN ASPECTS OF THE CONSTRuCTION CONTRACTS
ACT 2013 NEED TO BE TREATED WITH CAuTION.
t he Construction Contracts Act 2013 (“the Act”) applies to
certain construction contracts entered into after July 25,
2016. However, construction professionals need to be aware
that certain aspects of this legislation need to be treated with caution.
Failure to respond to a payment claim notice
unlike the equivalent English and Welsh legislation, the Act does not
Contractor shall pay to the NN Sub-Contractor the full amount claimed
in the NN Sub-Contractor’s Payment Claim without any deduction other
than Retention (if not already allowed for in the Payment Claim)”.
Right to suspend the works
The Act provides for an entitlement to suspend work in two situations.
First, under sub-section 5(1): “Where any amount due under a
expressly state that the amount claimed in a payment claim notice shall construction contract is not paid in full by the day on which the amount
become payable if no response to the notice is issued by the other party. is due”.
Nor does the Act set out the consequences of a failure on the part of the This arises if no sum is paid on the due date or if a certified sum that
paying party to deliver a response within the required time. Instead, the became due for payment is not paid. This right of suspension could
Act is silent on what is to happen in these circumstances. arguably also arise where a payment claim notice is served, no response
Legislation in the uK provides that the claimed amount is due for is given in accordance with the Act, and a sum less than the sum claimed
payment where the paying party fails to serve the required notice. But is paid on the due date. However, in order to circumvent this suspension,
the Irish Act does not say that the amount claimed becomes due if the if the other party refers the payment dispute to adjudication the
paying party fails to respond. under standard forms of contract, the contractor must resume work [s.5(3)].
amount due is calculated by reference to the value of the work and in A party can also, pursuant to section seven of the Act, suspend the works
default the schedule to the Act contains a similar provision. if the other party fails to make payment of a sum due under an
It is advisable to ensure that construction contracts address this gap in adjudicator’s decision. However, in such circumstances, if the other
the legislation. For example sub-clause 11(c)(2) of the ‘Agreement and party refers the dispute to arbitration the contractor must resume
Conditions of Sub-contract (NN)’, second edition, issued by the work [s.7(3)]. In reality it could take many months or years for an
Construction Industry Federation (CIF) for use with public works arbitration to reach the hearing stage, while in the meantime the
contracts states: “If the Contractor does not issue a response to a NN contractor’s cash flow will be negatively affected and they will also be
Sub-Contractor’s Payment Claim in accordance with Clause 11(c)(1) the incurring legal costs.
feAture
John Slevin
Chartered Surveyor and barrister,
and principal of Slevin Consulting.
16 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018“
one of the most effeCtive wAys of enforCinG
pAyment is to suspend the works. this Also
proteCts the ContrACtor from the risk of further
loss if in fACt the pAyinG pArty is insolvent.
It will be well known that one of the most effective Different treatment of sub-contractors and In theory this could cause some difficulty for main
ways of enforcing payment is to suspend the contractors contractors. It is possible, for example, that the
works. Suspending the works also protects the Sub-section 3(3) of the Act states: “The Schedule terms of the main contract may provide for the
contractor from the risk of further loss if in fact shall apply to a main contract if and to the extent first payment being made on a valuation carried
the paying party is insolvent. The other party, if that it does not make provision for the matters out, say, 60 days (or more) after commencement,
unable or unwilling to pay, can simply avail of specified in subsections (1) and (2)”. with payment thereafter at regular intervals. As is
these provisions and defer payment, without Sub-section 3(4) of the Act states often the case if the majority of the work is being
risking suspension. that the schedule shall apply to a carried out by sub-contractors, and if they are
The question then arises as to whether clauses in sub-contract unless the terms entitled to payment on a valuation carried out 30
construction contracts allowing a party to suspend of the sub-contract itself are days after commencement, the main contractor
work where a sum due under the contract has not more favourable to the sub- has a problem.
been paid must be read as incorporating a contractor. The schedule
provision requiring the suspension to be provides for payment, at
withdrawn in the event of notice of adjudication the latest, every 30 days.
being served or referral of the decision of the
adjudicator to arbitration or litigation. One would
presume they are to be so read unless the
contract says otherwise and, if the contract says
otherwise, that may be regarded as an attempt to
limit or exclude the application of the Act and
therefore be contrary to subsection 2(5) of the Act.
It is worth stating section 2(5) of the Act: “This Act
applies to a construction contract whether or not
– (a) the law of the State is otherwise the applicable
law in relation to the construction contract, or (b)
the parties to the construction contract purport to
limit or exclude its application”.
A further risk is that a party who suspends under
the Irish Act is at risk of being found liable for
damages if it transpires that there was no sum
properly due under the contract at the time the
suspension occurred. This is because, depending
on the circumstances, under the Act the sum
claimed through a payment claim notice is
arguably not necessarily due and may be found in
adjudication not to be due, notwithstanding that
no response notice has been given.
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 17stAte of
dilApidAtion
INTERIM SCHEDuLES OF DILAPIDATION IN A RISING MARKET HAVE
BENEFITS FOR BOTH LANDLORD AND TENANT IN A COMMERCIAL LEASE.
i n 15 years of producing schedules
of dilapidation, I’ve found that
the receipt of terminal schedule
has usually come as a surprise to a tenant.
This shouldn’t really be the case as a lease
outlining the terms and conditions of the
letting is entered into by all parties. There
requirement to comply with
the lease exists throughout
the term and, as such, a
tenant or landlord can be put
on notice and requested to
deliver compliance at any time.
Over the last two years there
should be a clear understanding of the has been an increase in the
obligations (landlord and tenant) relating to number of interim schedules
a property rented under a commercial served, putting landlords/
lease (rent payment, statutory compliance, tenants on notice to perform
repair, etc.). While there is no legal obligation during the term of the lease.
on a landlord to produce a schedule of
dilapidations, it is the responsibility of both
parties to ensure that they comply with their
own requirements under a lease. It has in A risinG mArket, CommerCiAl property
become common practice.
A schedule of dilapidations is produced based is no lonGer seen As Just A rentAl vAlue.
on certain lease clauses, and outlines one
party’s interpretation of what is required to if this view is tAken, the property will
deliver compliance with the lease. The
soon fAll Behind the rest of the mArket.
feAture
Andrew Ramsey
Director at McGovern
Surveyors
18 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018Term policing is difficult to substantiate and a landlord must cases positive feedback has been received from
In a rising market, commercial property is no mitigate their loss; capital expenditure is the building user who, as a result of company
longer seen as just a rental value. If this view is inevitable. An interim schedule of dilapidation protocol, is not in a position to complete
taken, the property will soon fall behind the rest can assist in maintaining asset value and keep a operations expenditure (opex)/capital
of the market (in terms of quality). This is property in a lettable condition. expenditure (capex) unless there is an official
particularly relevant with the increase in break Interim dilapidations will usually deal with request to do so. An interim schedule assists in
provisions within leases (5-10-15 year breaks), specific breaches likely to cause a diminution in firmly and formally advising a party to the lease
along with an on-stream supply of new and the property value or a threat to health and of their obligations.
refurbished space. safety. An interim schedule will not usually What we have also identified is that tenants are
If a tenant vacates and a property is not ready for contain costs against listed breaches, as the likely to complete more work than they are
the market, there will be a void period with zero intention is to implement work rather than claim actually obliged to do under the terms of the
rent, along with landlord capital expenditure, damages. lease because they are going to get the benefit
before a new occupier is found – and don’t forget From experience, a visit during the term by the of the work during the remainder of the term.
about the obligatory rent-free period. landlord’s building surveyor often instigates a This reduces the end-of-term dilapidations
Consequential loss within a dilapidations claim programme of work by a tenant. In a number of argument of repair versus improvement.
Asset protection and cost reduction Tactical protection
From a review of in-house dilapidations data, it is clear that There are also a number of tactical reasons why a landlord
there are a number of common breaches under most might wish to issue an interim schedule or have early
terminal dilapidation claims. If repair/maintenance had been discussions with a tenant. Where a break option is
completed earlier, the end-of-term argument and cost approaching and the tenant could actually leave, it may
exposure would have been significantly reduced, if not persuade them not to if the interim schedule shows that they
removed altogether: a win-win for all parties. will be encumbered with a large capital cost. As part of issuing
For example, early repair to a roof covering can increase its the schedule, the landlord may need to identify what work
serviceable life and reduce cost exposure. This is particularly they would accept as being completed over a phased basis, to
true in the case of cut edge corrosion, with cost variation of ease the burden.
€40-€55 per metre, subject to the level of deterioration. An interim schedule can also be utilised to formalise
Fire compartmentation and detection is also very important paperwork and ensure that correct standards are achieved,
in a property; however, there are still buildings with no fire especially where a tenant has completed alterations without
detection. under the terms of a standard lease a tenant only obtaining landlord approval, or where work was carried out
needs to comply with statute while in occupation. If an interim to an inappropriate standard. Poorly completed work could
schedule is issued, they would be obliged under the lease to have a negative impact on the building, or on other tenants in
comply with statute and install a fire alarm. This would not be a multi-tenanted building. There is also a concern that work
the case at term end. We need to be mindful, however, of completed without full consideration could impact negatively
reinstatement, as the tenant can legally take the alarm on the building insurance.
system with them at term end subject to the wording of the An interim dilapidation schedule presents a controlled
yielding up clause. opportunity to reaffirm the requirements under the terms of
Section 65 of the Landlord and Tenant Amendment Act 1980 the lease. It allows time and options for all parties to complete
restricts a terminal dilapidation to the actual value of the work under their control or to put in place deeds of variation
landlord’s reversionary interest in the premises and is a claim to provide clarity on lease interpretation. This could assist in
cap. This piece of legislation cannot be relied upon under an reducing end-of-term arguments and lengthy legal disputes
interim situation, as there is no claim for loss, simply a where communication may have broken down and a financial
notification of required work under the terms of the lease. settlement is the only option.
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 19reAdy
to fly
DuBLIN AIRPORT uSED OFFSITE CONSTRuCTION TO ExPAND ITS
PASSENGER BOARDING FACILITIES AND COMPLETE ONE OF THE
FASTEST PROJECTS EVER uNDERTAKEN AT THE AIRPORT.
t here has been a surge in interest
in offsite construction to support
airport expansion as operators
look for more innovative solutions to build new
world-class facilities. The benefits of modular
solutions are proven: reduced work on highly
constrained, secure sites; shorter programmes;
passengers using the airport in the past year.
South Gates is a new €22 million passenger
constructed offsite by The McAvoy Group to reduce
the programme for earlier occupation in order to
less disruption to airport operations; and, greater boarding facility that has been developed to meet meet the rising demand for flights from the
certainty of delivery on time and on budget. this huge growth in numbers. The building was airport. The new facility was manufactured at the
Dublin Airport is one of the fastest growing airports designed to be used mainly by Aer Lingus for flights Group’s offsite production centre in Lisburn,
in Europe. It has experienced a 6% increase in to the uK and continental Europe. It provides seven Northern Ireland, and was craned into position in
passenger numbers, with a record 29.6 million boarding gates to serve nine aircraft stands and can just 16 days as 77 steel-framed modules, up to
accommodate around 1,000 passengers at a time 12m long and weighing up to 13 tonnes each.
and up to 8,000 people a day. The use of an offsite solution allowed the airport’s
feAture operations to continue uninterrupted, with the
Raymond Millar The offsite solution minimum of disruption. It also allowed the fast-
Construction Director,
The dedicated passenger boarding zone was track programme for the project to be achieved.
The McAvoy Group
20 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018Architectural design
A range of simulation tools was used to validate the performance of the proposed building against
Project challenges international airport standards, while meeting the functional requirements of the client, Dublin Airport
The offsite solution had to address a number Authority. A facility was developed that would provide a safe, comfortable passenger environment
of challenges on this project: with the appropriate levels of service, amenities and passenger information.
Externally, the highly glazed building is finished in two shades of anthracite grey aluminium cladding
n Programme – the building had to be delivered to complement the existing passenger facilities. A screen of grey louvres wraps around the roof to
to a critical and short programme to conceal services and plant rooms, and there is a structural cantilevered canopy to three sides of the
accommodate additional flights. It was building to provide shelter for airport staff and passengers.
operational within a 16-month planning, The internal environment is finished to a very high standard and the materials, lighting and signage co-
design and construction schedule. ordinate with the other terminals. This includes hardwearing and impact-resistant internal wall cladding
n A highly constrained site – the space for the with contemporary stainless steel joints. The rear wall of the boarding zone is a security wall, which
new facility was restricted within the South incorporates security mesh and vibration sensors. An accessible floor void accommodates services.
Apron and the fully operational airport site.
n Full integration of airport mechanical and A highly flexible airport facility
electrical (M&E) services – all M&E services The South Gates facility is designed to operate in three different modes in a single day. It
(including data communications, fire and accommodates departing flights in the busy early morning period, and facilitates mixed-mode
security) had to link into the existing live operations in the afternoon, and flight arrivals in the evening. It can also be segregated so that
airport terminal systems, which was a hugely departing and arriving passengers can be processed at the same time. This highly flexible
complex operation undertaken by McAvoy. approach reduces congestion in Terminal 2.
n Open plan environment – clear uninterrupted For the mixed-mode operations, an internal security ‘swing’ gate was incorporated into the
spans of over 19m were required for the 120m building design to separate arrival and departure passengers.
long facility. This was achieved by engineering Facilities include seven boarding gates, a café, toilets, baby changing facilities, and a workstation
the building modules to incorporate hot rolled area with plugs and charging points.
structural steel beams, which removed the
requirement for internal columns – a modular Digitising offsite construction
industry first. Building information modelling (BIM) was used extensively in the tender and design stages.
n Stringent fire safety standards – the scheme McAvoy created a virtual reality (VR) model of the building to demonstrate the building design
had to meet stringent fire safety regulations and offer a fully immersive VR experience. This allowed the client team to review the internal
that exceeded Building Regulations. environment, and in particular the innovative acoustic ceiling solution. VR fly throughs at the
n Enhanced acoustic specification – a specially earliest stages of the project facilitated client engagement and informed key design decisions.
designed ceiling solution was developed using At the detailed design stage, the client was able to make real-time changes to the internal layout. The
suspended panels in different shapes and use of analysis tools also allowed McAvoy to simulate building construction processes, including the
orientations. This provides a high standard of complex module delivery process, on a highly restricted airport site.
acoustics and its chequerboard appearance All the principles of BIM were used for the project. 3D drawings and models were produced for
has created a strong visual feature as well as both the steel structure and architectural modelling, and a common data environment was
a sense of space. created. BIM was also beneficial for clash detection for the installation of complex M&E services.
The customer perspective
Iain Heath, Project Manager at Dublin Airport,
said: “This is one of the fastest projects we have
the finished BuildinG speAks for itself. ever completed at the airport – from planning to
the first flight in just 18 months. The finished
it is A hAndsome new fACility with hiGh building speaks for itself. It is a handsome new
facility with high-quality finishes and clean
quAlity finishes And CleAn architectural lines”.
Brian Looney, Contracts Manager at Flynn
ArChiteCturAl lines. Management & Contractors, added: “This project
has pushed the boundaries of offsite construction
to create a valuable infrastructure facility. The
quality of the finished building is excellent, and you
would never know this is a modular building”.
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 21wAterford
is wAitinG
THE PEOPLE OF WATERFORD ARE WAITING FOR DEVELOPERS TO START BuILDING
HOuSES, AND FOR A KEy DEVELOPMENT THAT WILL CHANGE THE FACE
OF THE CITy AND IMPACT HEAVILy ON ITS FuTuRE.
A t the moment, Waterford is planning one of the most significant developments
in its history. A €300m plan aims to redevelop the long-neglected north quays.
The plan relies on Government funding for infrastructure improvements. A
total of €100m was requested by Waterford City and County Council, with €20m applied for in the first
round. However, in November it was announced that the project was getting just €6m in this round.
The market
Local residential surveyor Des Purcell of Purcell Properties says that the residential market in Waterford
has picked up in recent years but that new houses are needed. Fianna Fáil councillor Eddie Mulligan
describes the building of new houses in the city as quite stagnant. He hears from businesses that have
invested in the area that they need greater and faster housing solutions: “We need to be able to deliver
sustainable, affordable housing or sustainable, affordable accommodation models for the future”.
He states that in a recent meeting with a medical devices investor in the area, the company said their
one concern was housing for staff.
In the past, the second-hand market and the new homes market fed off each other but there are few
new houses around now says Des: “But there is a strong first-time buyer market confined to the second-
hand homes market”.
According to Des, a new three-bed semi in the city will fetch about €230k-€240k. He has recently sold
a few houses in the €700k-€800k range, which he had not done for a few years.
Des summarises the Waterford market – strong first-time buyer element; limited in supply; and, with
a number of builders getting ready to start building houses soon: “We now have four or five builders
with land, zoning, planning, services, money, all going to start selling three-bed semis”.
The south east region does not have a university and there have been plans for years to merge Waterford
Institute of Technology (WIT) with IT Carlow to form the Technological university of the South East
(TuSE). If this happens, it will be a huge boost for the region. However, talks between the ITs have not Living in Waterford
always gone smoothly. The plan has full Government support, with Taoiseach Leo Varadkar saying he Average rent: €955 (Daft.ie
Rental Price Report Q3 2018)
hopes to see the merger happen soon. In July, he said the Government is waiting to sign off on the TuSE
Average asking price for a house:
as soon as it meets the criteria and he urged the ITs to redouble their efforts. Eddie says the TuSE is
€173,283 (Daft.ie House Price
vital to stop the brain drain in a region where one in four young people leave and don’t come back.
Report Q3 2018)
Official figures on offices are not
available but Des Purcell says
feAture modern offices to rent cost
Colm Quinn €16-€17 per sq ft.
Journalist and Sub-editor,
Think Media
22 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018Spraoi Waterford Crystal North Quays
Every August Bank site A €300m redevelopment of the
Holiday weekend, Waterford The former Waterford Crystal north quays is planned. It will be
is taken over by a swarm of street factory site is 36 acres and some hope one of the most significant
artists who perform on the it might be bought for the expansion of developments in the city’s history. It will
city’s medieval streets for WIT when the TuSE is formed, as it is consist of retail space, offices, 300
everyone to enjoy as part of the beside the main campus. Eddie apartments and a hotel. A pedestrian
Spraoi International Street Mulligan says the Government bridge will be built across the Suir
Arts Festival. should be purchasing sites like to link the development with
this for that purpose. the city centre.
Boundary question
The Waterford Boundary Review Committee
recommended redrawing the Waterford city
boundary further into Co. Kilkenny so the city
could grow in a more balanced way.
After heated opposition from people in
Kilkenny, this did not go ahead but
the Government said the city
needs to be allowed to grow into
south Kilkenny. A joint structure made up of
politicians from Waterford and Kilkenny is
being established with the aim of taking on
local authority functions for the area that
would have gone into Waterford.
However, Eddie Mulligan has his doubts
about joint authority and says co-
operation hasn’t seemed to work in the past:
“We need to expand because it’s been said before,
we’re like a bird flying on one wing”.
Waterford Institute Kilbarry Waterford Viking
of Technology This significant development Triangle
Waterford Institute of Technology (WIT) plans 2,000 nearly carbon neutral The Viking Triangle is named after
is the largest third-level institution in the housing units in Kilbarry and is backed the walls which once made it and
south east and was recently announced as by local and national authorities. includes Reginald’s Tower, the oldest
the highest ranked IT in the country by The Construction has already started on the civic building in Ireland. The Triangle is
Sunday Times. There are plans to merge first 69 houses. There is a plan to build a also home to the Waterford Museum
WIT with IT Carlow to form the solar farm beside the development, of Treasures and the new Waterford
Technological university of the which would provide an income Crystal factory and visitor
South East (TuSE). for the residents. centre.
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 23thAt sinkinG
feelinG
WHILE MOST MuLTI-uNIT DEVELOPMENTS IN IRELAND HAVE A SINKING FuND,
SCSI RESEARCH HAS DISCOVERED THAT MOST ARE INADEQuATE.
w idespread apartment
living is relatively new in
Ireland but is growing
rapidly. Apartment numbers rose by 85% between
“
2002 and 2016. The housing crisis and continuing
urbanisation mean that the trend will continue.
The growth of multi-unit developments (MuDs)
eduCAtion is needed to help
has seen the emergence of owners’ management
companies (OMCs) to manage them.
property owners understAnd
Developments are usually managed on a day-to- why Good sinkinG funds Are in
day basis by professional managing agents, many
of them SCSI Chartered Property Managers. their interest.
An MuD needs a good sinking fund to ensure that
it has the resources to refurbish its common areas SCSI report on sinking funds that less than one-quarter of MuDs
and upgrade lifts, roofs, fire safety systems, The SCSI recently published a report on under their management have adequate
carpets, etc. Inadequate sinking funds reduce the sinking funds in MuDs. This drew on sinking funds.
quality of the property and potentially compromise consultations with nine large Irish When asked why so many MuDs have
health and safety. As the seanfhocal says: “An té managing agencies, with data covering 632 inadequate sinking funds, agents
nach gcuireann san earrach, ní bhaineann sé san MuDs and 52,600 properties. said that many property owners do
fhómhar” (“If you do not sow in spring, you will not The age profile of MuDs in the study (Figure not want higher charges. Related to this is
reap in autumn”). 1) suggests that the issue of inadequate the finding that six out of seven MuDs do
The 2011 Multi-unit Developments Act requires sinking funds will come sharply into focus not have a BIF report (Figure 2) and so do
that MuDs set up a sinking fund and mentions a in the decade ahead. A positive finding not know how much funding
guideline annual contribution of €200 per was that almost all MuDs covered by the they will require in the future.
property. As MuDs differ widely, this is a purely study have established a sinking fund. Of those that have
notional figure. For a specific MuD, the OMC If developments have inadequate prepared a BIF report,
should ask a building professional to prepare a funds and need to undertake only a minority are
long-term building investment fund (BIF) report works, a special levy for members is fully implementing
(see panel). often required. In all, 77% of agents said its findings.
feAture feAture
Finbar McDonnell Kevin Hollingsworth
Director, Managing Director,
RF Property Management Omega Surveying Services
24 SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018The SCSI report made a number of recommendations, including: Others
For Government 1. The Law Society of Ireland should check if pre-contract enquiries can
1. One reason OMCs find it hard to build sinking funds is the challenge of include more on the sinking fund and whether a BIF report has been
collecting service charges from owners who refuse to pay them. Changes commissioned.
to streamline the collection of service charges would assist all OMCs. 2. Local authorities and social housing associations that own or rent
2. Regulation should be developed to support good practice on sinking funds. properties in MuDs should support the preparation of BIF reports and
3. Any update of the Act should require that a sinking fund be established strong sinking funds.
from year one.
4. As many elements of MuDs are reasonably standard, a guide on standard The need for good sinking funds in MuDs is no different to the need for any
‘wasting assets’ in an MuD should be prepared. home owner to put money aside in a prudent way for long-run
5. The Government should consider ways to incentivise OMCs to put money refurbishments. However, OMC requirements mean that building a sinking
aside. fund must be co-ordinated across many owners and the detail of the
6. It is likely that some MuDs will face funding shortfalls for essential buildings is more complex. Supporting OMCs to have good sinking funds will
projects. The Government needs to consider if they will support such support apartment living in Ireland as a normal, long-term residential choice.
MuDs financially and in what circumstances.
FIGURE 1: Age of MUDs surveyed.
For new MUDs
0 to 5 years
1. Safety files passed to OMCs by developers should include information on
6 to 10 years
the lifespan of materials and associated recommended maintenance.
2. A BIF report should be prepared at the outset and provided to the OMC by 11 to 15 years
the developer. 16 to 20 years
3. Sinking fund contributions should be included in annual charges from the 21 years plus
outset.
4. A small proportion of the purchase price of properties should be allocated
FIGURE 2: MUDs that have completed a BIF report.
to the sinking fund.
No BIF report
Raising awareness BIF report
1. Education is needed to help property owners understand why good sinking
funds are in their interest.
2. Estate agents should supply information on sinking funds and whether a
BIF report has been prepared.
The importance of BIF reports by Kevin Hollingsworth render, I know that ongoing maintenance costs and short lifespan will
The majority of building investment fund (BIF) reports that I undertake require higher sinking fund contributions.
are of 10- to 15-year-old developments. upon completion and meeting BIF reports should be prepared at the outset of the development so that
with OMC directors, there can be disbelief regarding the costs in the purchasers are aware how much an apartment will cost initially and over
report. These costs are arrived at by identifying a material type, its the following decades. I believe this requirement should be put on a
expected lifespan, current remaining lifespan, the area and rate for statutory footing.
replacement. Design and material selection of a building is critical to the It should be remembered that the BIF report is a living document, which
life cycle costing of the development. When I arrive at a development and can be used by the property manager to identify necessary works each
see a slate roof, uPVC windows and brickwork walls, the BIF numbers year. It is also an evolving document that needs to be updated periodically
will generally be low due to their long life and low maintenance to identify advanced deterioration of some elements, which may bring
specification. By contrast, if I see flat roofs, timber windows and painted their replacement dates forward.
Read the full SCSI report ‘Sinking Funds in apartments: Meeting the Challenge’ at
www.scsi.ie/resources/pdf/2018/sinking_funds_in_apartments_2018.
SuRVEyORS JOuRNAL Volume 8, Issue 4, Winter 2018 25You can also read
