The Pyrite problem - How North Dublin Homes were effected

We've blogged on this a lot recently. The issues faced by over 550 home owners in North Dublin were a disgrace, borne out of the use of potentially poor materials and /or building practices.

It all started back in 2008. To see the details of the recentl settlement click on the link below.

http://www.onlinetradesmen.ie/BlogSpot/tabid/422/Default.aspx

We have moved....

We've moved our blog onto Onlinetradesmen.com and added 3 new bloggers in the process!

By doing so we have created Ireland's first dedicated blogspot for qualified trade professionals. Here they discuss a wide range of issues that effect both the trade sector and property owners alike. Have a look in at the link below......in the meantime I'll try and work out how to integrate the blogger platform with our own!

http://www.onlinetradesmen.com/BlogSpot/tabid/422/Default.aspx

The Home Insulation Scheme - Worthwhile?

My last post dovetailed nicely with the launch of the national insulation programme (under the guise of the SEI's The Home Energy Saving Scheme), the governments stimulus for the ailing construction sector, along with the answer to reducing homeowners energy bills. For many it is seen as the answer for tradesmen and builders in sector - with the SEI estimating that it will influence an additional €500m in spending by property owners every year. It is certainly well founded, but is it enough ?

Lets look at the figures

The insulation grants are structured as follows:

CATEGORY GRANT * Maximum Grant Aid
Roof Insulation €250

Cavity wall insulation €400

Internal Wall Dry-Lining €2,500

External wall insulation €4,000

High Efficiency Gas or Oil fired
Boiler with Heating Controls
Upgrade €700

Heating Controls Upgrade €500

Before works and an After
works BER assessment €200

In the interest of brevity, let's look at the best case for a property owner. External wall insulation offers the most efficent insulation solution for the majority of existing homes and is the most expensive. The SEI have estimated the cost insulating the average 3 bed semi D in this manner at about €19,000. (This might be excessive, Onlinetradesmen.com would see it more like €15,000.) In this case the property owner can claim the €4,000 in grant aid. If they wish, they can also claim additional aid amounts in the scheme as part of their overall project - such as the high efficency boiler upgrade and a before and after BER assessment. So the total grant aid for someone looking to insulate, upgrade their heating and get an assesment in this instance would be €4000 + €700 +€500 = €5200. Not bad.

So what does this mean to the tradesman or builder ? To receive this grant aid the property owner will need to spend an average of about €15,000 on external insulation. Factor in another €3,500 for the boiler upgrade. Then €600 for the before and after BER assessments. Total spend is around €20,000, give or take.. An injection of this kind of spending in this scenario will certainly help the tradesmen and builders of Ireland - if it happens.

But what will the reality be ? The above case is a best case scenario. In it the project value is €20,000, the grant aid is €5,200 and the property owner pays out €14,800. Is pure energy saving terms, is this a viable investment ? Not really, as the SEI estimate that the property owner will save an average of €700 per year on their energy bills from doing this work, yeilding a return on investment of some 21 years until breakeven! However, It is when you also consider the potential increase in value of a home with an improved energy rating that the insulation scheme works - Property owners benefit from an increase in the selling price of their home (if they are selling) and landlords potentially benefit from higher rental income from a property with lower running costs. Given all of this, an uptake has to happen as it makes economic sense. So in layman terms the national insulation programme (under the guise of the SEI's The Home Energy Saving Scheme) is pure genius......but.....

It is unlikely that it will bring €500M in additional spending into the tradesmen and builders sector every year as this is based upon the 'best case' scenario above. More likely is a figure of about half of that.

Standards. We need to be careful here. Standards need to be maintained in order to prevent the scheme from becoming a farce - providing a pot of gold like this will attract all sorts of mercenaries from the trade sector. Currently the SEI are asking tradesmen and builders to register who have C2 (tax clearance), Insurance and will sign up to charter which includes a technical specification. Does this mean that they are qualified to do this work ? Say I am, for example, an established landscaper with all the above, can I enrol ? The SEI maintain that they will spot check the work of enrolled professionals but, with respect, it's not an easy task to carry out after the fact.

In summary, all in all it would appear that the government have got something right in the current climate of calamities. Now we just need to hope that it lives up to it's promises.

For more information on the national insulation programme (under the guise of the SEI's The Home Energy Saving Scheme) go to the SEI web site or logon to Onlinetradesmen.com.

Damn Statistics. How qualified tradesmen & builders can win..

Today I found a positive story in the Sunday papers relating to the construction sector. Yippee! Maybe I should frame it. The announcement that minister Eamon Ryan is launching the national insulation programme to boost jobs in the construction sector. Great stuff, Minister!

More on this again, although I wanted to start with some good news before I commented on the latest CSO statistics. Reporting on the the relative health of the sector for tradesmen and builders, its bad news for some but there is something we can do about it..

The facts

The CSO (Central Statistics Office) Quarterly Planning Permissions Granted, Q1 2001- Q3 2008, report makes interesting reading. New constructions aside, (as Onlinetradesmen.com members are primarily focused on extension and refurbishments) Q3 2008 has shown a decrease of 20% in the number of planning permissions granted for house extensions nationwide when compared to the same period in in 2007. In numeric terms, permission for house extensions has dropped from a high in Q3 2007 of 5,210 to 4,166 in Q3 2008 - the lowest number since Q3 2003. The Q3 number is significant as this is the busiest period for permissions annually. In the same period the number of 'House Alteration and conversions' that received planning, was down some 15% in Q3 2008 (711) from Q3 2007 (837).

In addition to the above, the statistics show that in Q3 2008 the average size of extensions granted permission was 112.8 sq. meters (this must include renovations as well). This is down from an average house extension size of 144 sq meters in Q3 2007.

Reasons to be cheerful

OK, granted, there aren't many - but there are some. Planning permission only applies for extensions of 40 sq meters and above, with smaller extensions not registering in the CSO's figures. What the CSO's numbers do reflect are that there is a nationwide trend towards smaller extensions - something that Onlinetradesmen.com can confirm, with significant activity on our service for smaller extension types. What is also ignored are is the non extension related activity within the trade sector. General home improvement have increased nationwide according to figures on Onlinetradesmen.com, with smaller projects such as bathrooms, flooring, painting and decorating up over 15% on previous quarters years.

How to buck the trends

We can't argue that fact that there are now too many tradesmen competing for too little business in the domestic sector here. So something has to give, right ? The knee jerk reaction has been that prices have fallen and the customer, on the face of it at least, has benefited. However, I wonder how sustainable this is. In a race to the bottom nobody will win in the end. In my next blog post I will outline my own thoughts on how tradesmen and builders can differentiate themselves in a tight market and win more business. So, because of time constraints (it is a Sunday!), I'll outline these in the next post and finish with the time honoured phrase of
....TO BE CONTINUED...

2 in 5...

I'm reading a report in the Irish times that two out of every five architects will have lost their jobs in the last 15-months. Given that figures are provided by the Royal Institute of the Architects of Ireland (RIAI), it's official. For those in the sector, it's a well known fact that architects are the first in the firing line in any downturn, the rest tend to follow. Does s this mean that the worst is yet to come for tradesmen and builders ? I hope not. But rather than wallow, lets have a look at what out of work architects could now potentially do for a living..

Domestic Architecture Jobs
During the boom times sourcing an architect for a domestic project was like chasing rainbows. For many property owners you had to be related to, close friends with or in possession of some compromising information on an architect in order to get them to consider a taking a domestic architectural job. OK, I exaggerate slightly, but with so many high paying commercial building projects in offing, domestic commercial projects simply didn't register for many. Now however, things have changed. Domestic architectural contracts can offer a steady revenue stream for registered architects and should be considered. At onlinetradesmen.com we are seeing a steady demand from property owners nationwide. See here for more.

BER Assessors
It seems that a lot of skilled construction professionals are banking on the BER regulations as a means to providing a livelihood in the downturn. The regulations now require that all private dwellings that are rented / up for sale have a BER certificate from a qualified BER assessor . This should provide a steady workload for many - if the regulations are enforced (another day's posting). It's early days yet, but the signs on our own service are that property owners are starting to take this seriously. Since Jan 01 requests for BER assessors on Onlinetradesmen.com have increased by about 400%! You can see more at in our BER section.

Qualified Architects pre-qualify to train as BER assessors. Sustainable Energy Ireland are responsible for setting the training standards for BER assessors nationwide, with training companies like chevron training doing the certification. SEI have set the bar so that only holders of a "National Certificate Level 6 Advanced Certificate/Higher Certificate in construction studies or other cognate discipline or equivalent" are eligible to to take the course. According to the SEI,"Equivalence may be determined as a combination of an appropriate construction-related qualification and significant relevant experience." I get a little concerned about the latter statement as it adds a layer of ambiguity as to who can train - I just hope that the qualifications are being policed properly. Bottom line is that architects, with their in depth knowledge on construction technology, practices and materials, are ideal for this area.

Domestic Project Management
While domestic or residential project management services are in their infancy in Ireland, they are well established outside of Ireland. It's a service that makes complete sense for property owners who are undertaking construction projects without the experience or knowledge to manage it themselves. Sure, a building contractor can manage the build, but that still leaves the property owner with an awful lot on their plate. By appointing a project manager to oversee the planning, design, contracts, construction phase and snagging, property owners can ensure a project is completed on time and on budget - without the stress and normal hiccups. This area can be serviced by surveyors, qualified project management professionals and - surprise - architects. Onlinetradesmen.com is launching a service around this for property owners - Architects should apply! See here for more.

Other areas
There are doubtless a vast number of other areas that architects can apply their highly developed skills of organisation, planning and creativity to. Suggestions of interior design, landscaping and other areas come to mind. Perhaps the reader can suggest some others ? Maybe between us we can narrow the gap between the 2 and the 5....

Are things loosening up ?

Some good vibrations at the moment...

Well better than the last few months at any rate. I've hear mumblings from a couple of mid-sized contractors that they might be upping tools again in January on a few existing sites in Kildare and Meath. Could this be true ? The story that I have is that the change in interest rates is expected to sell a few houses in the new year and they need to offload them. What a start to the new year that would be...

January is expected to be the biggest month on Onlinetradesmen.com ever in terms of the number of home improvement project submitted by property owners. A self fulfilling prophecy ? We certainly hope so...

Liveline or Gripeline - Was Joe Duffy's Liveline fair ?

There has been a significant amount of feedback from tradesmen and builders in the last week regarding a segment aired on Joe Duffy's Liveline programme on RTE Radio 1 on Wednesday 5th November. The general gist of the feedback was that the builder at the center of the peice was dealt with harshly and that the liveline show only covered 'bad' stories about builders or tradesmen. Well, in reality there is no shock in either point given that the feedback was from fellow tradesmen and that, in my opinion, liveline is a show that deals mainly with complaints - but lets have a look at the particular incident in overview.

From what I can gather a property owner rang up liveline to complain about a new home build that a builder had contracted to complete. There was a contract in place and an architect to sign off on the project in stages. The issue appears to have arisen towards the back end of the project. The property owner contended that the builder had practised shoddy workmanship and unacceptable work practices (i.e not turning up on site). They subsequently dismissed the builder in question and did not pay them the outstanding amount - some €30k. The customer contends that they are in the possession of both a QS report and structural engineer to back up their claims. When the builder came on air to defend himself he was also met with a queue of his suppliers to whom he owed money - unfortunately a growing problem in today's climate - which caused further doubt about the builder in the listeners mind. Indeed, coupled with the unfortunate property owners story, the case seemed to be a closed book with the builder condemned to a life of hanging pictures on a remote Island - as long as it natives can't pick up liveline!

However, the builder in question raised a number of interesting points in his defence. His argument was that the project had proceed near completion and had been signed off at every stage by an architect. Is this possible where a project has shown consistently poor workmanship and is been managed by a competent architect ? The builder also contended the majority of delays were down to a lack of funds on the property owners side as the scope of the project changed during the process. This most certainly happens and the availability of extra credit is by no means a given these days. The builder then maintained that, after purchasing a number of high end fittings on his accounts, he was chased off site on the day that they were delivered. He reckons that this meant he was indebted to the various suppliers with no chance of payment for the goods, hence his debt problem.

Now this blog cannot support either side of what is a complicated affair founded on allegation, but on the face of it there are valid (if unfounded) points on both sides. However, in my opinion this is where the balance ends. At the end of the liveline piece I was left thinking that the builder in question will have difficulty doing business in this country again. As for the property owner, he made his points well, did some serious damage to the builder and lost nothing from the experience.

So herein lie the questions:

If the case goes to court and the builder is found to be the victim, what then ? If innocent, can the builder hope to retrieve his reputation and recoup his livelihood ? If innocent, will liveline feature his company again in a positive light ? If guilty, has liveline done society a favor?

Of course there is no guarantee that the builder would be shown to be a victim. Maybe he is the one at fault and deserves everything that is thrown at him as there is absolutely no place for shoddy workmanship or poor customer service in today's Ireland. Regardless, I think that there are lessons here - life in business isn't fair and, if you want proof, listen to liveline.

Bodyguards, Contractors and Electricians

Sounds like a bad episode of the Sopranos but bear me out...

Word on the street is that some main building contractors are not hurting as much as they would have us believe. Their policy of not paying the substantial monies that they owe to their sub-contractors across the country is keeping the wolves from their doors - while setting them loose on their subbies.

We have received a host of reports from members and other tradesmen that, while large sums of money are owed to them from previously respected contractors, they simply cannot get paid. In one case over €200,000 is owed to a plumber from one of the largest contractors in Ireland but he is being fed the line that the money is not there to pay him. While he is looking at taking legal action to settle the matter, others have been talking about a less desirable courses of action - so much so that at least one high profile contractor has allegedly hired a group of bodyguards for his personal protection. Messy stuff that has the potential to get out of hand -surely if the developers have managed to re-negotiate credit terms with the banks they can pay some or all of their bills to their tradesmen ? Let's see how it pans out.

On the Electrician front Onlinetradesmen.com and RECI recently partnered to re-develop the new reci.ie web site - viewable at www.reci.ie. An official press release to follow. Essentially RECI members can now access job leads from members online and create their own business web sites. Should be great for members of the public as well, they can put in details of work that they are looking to get pricing and start dates on and receive replies from RECI electricians.

We're off to see the wizard of OZ!

The government are sending all Irish tradesmen to Europe, Australia and beyond. It's official. They are planning to raise the Asgard 2 and, along with the Jeanie Johnson, cram as many tradesmen, their families, potatoes and other necessary bits on board an Irish fleet not seen since the darkest days of the famine. They looked at using Ryanair but, in the interest of passenger satisfaction, ruled on using overcrowded famine ships instead!

Seriously though - it seems like Irish tradesmen and construction workers are being made walk the plank. The FAS international construction workers employment fair in June was choc-a-block with interested recruiters for countries such as UK, the Netherlands, Belgium, Slovakia, Sweden, Norway, Denmark and Poland. Then reports from the the "Down Under Expo" in the RDS were of major interest from tradesmen in starting over in fairer climes. Then the government let slip earlier this week that construction workers are being encouraged to seek employment abroad. Ever get that 'you're not needed anymore' feeling?

P.S - I was in Australia earlier in the summer. Speaking to tradesmen in Sydnet I'm not sure that there are a huge number of jobs to be had. A lot of public infrastructure stuff in Brisbane and Perth I'm told though - so just don't expect to be living beside the opera house if you're going!

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Heard a report on newstalk earlier from a hardware shop in Wexford that hardware sales were down 11% this year compared to last year, 20% down over the summer months and nearly 40% down during the month of September. Scary. Apparently tradesmen and property owners aren't buying anymore. Is this true I wonder ? Our own site Handyhardware.ie
is holding it's own but I think that more people are looking for deals online these days. Are tradesmen buying more tools online ?

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I should really post something positive. We received 3,200 requests for tradesmen from Irish property owners in September. Not bad for a country in recession, with no credit and falling house prices.

Anything "Sustainable" about renewables for tradesmen ?

While I am personally a big supporter of the use of sustainable / renewable energy solutions in Irish homes, I have to question whether it is currently viable for Irish tradesmen to limit themselves to such technologies in the sector.

Unfortunately, an initial surge of interest in all things solar panel, heat pump, wood pellet etc. apart, it seems that a disappointingly low amount of money has changed hands in this area of home improvement in the last 6 months or so.

Am I wrong ? I hope so, but anecdotal evidence from tradesmen in the area would suggest otherwise. The issue appears to be that property owners have worked out that the return on investment for solar, wood chip etc. is just too long - even with the SEI's greener homes scheme in place. In a period when "cash is king", it has resulted in property owners choosing more "traditional" solutions, such as efficient gas & oil boilers that meet current building regulations, for their lower upfront costs. Disappointing but hardly surprising. Indeed with the banks giving high interest rates for money on deposit, the pro's of saving a significant lump sum upfront and putting it to work immediately versus taking accumulated savings over an extended period appears to weaken the business case for sustainable further still.

The result of all of this is wholesale reports of tradesmen (plumbers in particular) that had initially set out their stall as "100%" sustainable solution providers have had to revert to traditional domestic work to supplement their incomes. Don't get me wrong - there is still activity in the sustainable sector and we see jobs coming into Onlinetradesmen.com everyday in the form of solar, heat pump, wood pellet and more - but tradesmen are telling us that the overall demand from property owners (from all sources including the SEI installer listing) isn't enough to base a successful business on.

So what are your thoughts on this ? Personally I would love to see additional changes to make adoption of sustainable technology more widespread in the domestic and commercial sector. I guess with the current status of the state coffers however, this may be just a pipe dream.