Consumer study shows construction problems

MORE THAN a fifth of homeowners had problems with the construction industry when purchasing, building or renovating a property…

MORE THAN a fifth of homeowners had problems with the construction industry when purchasing, building or renovating a property, according to a survey published yesterday.

The National Consumer Agency (NCA) report, The Home Construction Industry and the Consumer in Ireland, carried out by Grant Thornton, examined costs to consumers and the protections available when buying or upgrading a property.

In the survey of 798 people, 165 (21 per cent) said they had a problem.

Of those, 88 related to major works, 76 to a new house or apartment, and one to a second-hand house/apartment.

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The main problems reported were poor workmanship (57 per cent) and failure to complete to a schedule (31 per cent); work started but not completed (17 per cent); communications issues (16 per cent); quality of materials issues (13 per cent);, not keeping appointments (10 per cent) and building plans not adhered to (6 per cent) were the other main problems.

Quality of workmanship was the main problem in new housing, while not keeping to schedule, not keeping appointments, and communications issues were more dominant in major projects.

The report measured "consumer detriment" - or problems due to poor services, workmanship, or materials - in terms of financial and non-financial loss.

The average cost of incidents with loss in new houses was €1,911 and €1,344 for major works. Fifty three per cent of respondents said building problems caused them stress, 38 per cent said leisure time was affected, while 22 per cent reported a loss of work time.

The cost of construction-related problems to consumers was the equivalent of €80.7 million in 2007, the report found. However, consumer detriment loss as a percentage of building output was just 0.36 per cent.

However, Tony O'Brien, head of business consulting at Grant Thornton, said the Irish level of detriment in repair, maintenance, and improvement of homes was 2½ the times that in Britain.

Mr O'Brien noted that there may be losses consumers are unaware of - such as those relating to wall insulation and foundations.

Ann Fitzgerald, chief executive of the National Consumer Agency, added: "To the consumers, this is a major issue for what is the biggest purchase of their life. Our research shows that home improvement is a greater area of consumer detriment than in new dwellings."

The study made 25 recommendations, including a statutory system of certificates of compliance for contractors and subcontractors, a simple contract for small domestic works and better dispute-resolution procedures. The consumer agency is also seeking a forum of all stakeholders to implement the report's findings.

The Construction Industry Federation welcomed the report, saying it found a high level of consumer satisfaction measured against British studies.

Hubert Fitzpatrick, the federation's director of housing, said it was looking at certification and compliance with building standards.

The report said that interests of consumers were "poorly protected" in legislation, but Mr Fitzpatrick said there was adequate provision to enforce building regulations.

The report is available online at www.nca.ie

Jason Michael

Jason Michael

Jason Michael is a journalist with The Irish Times