Well there builders, there's some big news on the horizon that is going to inject a little life into the residential construction market. The Irish government has rolled out a new funding scheme to tackle fire safety, structural safety, and water ingress defects in flats and duplexes built between 1991 and 2013.
There is No upper limit on how much the government is giving out for each job but they are banking on an average of €25,000 per unit. Quite a chunk of change!
How many jobs have you been on, looking at shoddy work from the 90s and early 2000s that your client didn't have the funds to sort out? Here's how you can turn this opportunity into a goldmine.
Assist with Documentation (Because Red Tape is Our Friend)
Paperwork might not be your favourite thing, but helping clients gather the necessary documents and evidence of defects can set you apart. A quote, observations, and a scope of work are all helpful to your clients when seeking funding. By offering this service, you make the whole process smoother for your clients and get in on the job right from the start. Just make sure to charge for these documentation services. Too many builders are wasting their valuable time by giving their hard-earned expertise away for free.
Coordinate with OMCs (Teamwork Makes the Dream Work)
Encourage your clients to contact their Owners' Management Companies (OMCs) and offer to handle the liaison work. This not only smooths out the application process but also keeps the projects rolling. Being the go-between can open doors to more business from OMCs, who will appreciate your hands-on approach and might just keep coming back to you for future projects. Finding one client is great and all, but it's even better to get a whole building's worth lined up in one go.
Emergency Fire Safety Fixes (Be the Hero in a Fire Drill)
Got clients with urgent fire safety issues? Advise them to jump on the Interim Remediation Scheme immediately. Ensuring that all fire safety work meets local fire service agreements means guaranteed future funding. Not only do you get to save the day (and the building), but you also secure immediate work, leading to steady income and possibly even bigger projects down the line. And have you had a look at the price of fire doors lately? Not a bad thing to get into.
Stay Informed (And Be the Smartest Person in the Room)
Keep your ear to the ground and stay updated with the latest from the Housing Agency and the Department of Housing, Local Government and Heritage. Why? Because having the right information at the tip of your fingers shows expertise to your clients. Smart advice equals happy clients, and happy clients mean more business and referrals. Plus, being in the know lets you spot new work opportunities as the scheme develops.
Future Proofing (Prevent Today, Profit Tomorrow)
Talk to your clients about the importance of ongoing maintenance and proper management to prevent future defects. This isn't just good advice—it’s a business strategy. Offer maintenance services or contracts and create a new revenue stream. Educating clients on proactive maintenance means fewer emergency repairs and more planned, profitable projects. Think of it as investing in your future profits.
Amount of Funding Available
The government estimates that between 62,500 and 100,000 apartments and duplexes may need fixing, with an average cost of about €25,000 per unit. This means the potential total cost of the scheme ranges between €1.5 billion and €2.5 billion. That's a whole lot of work and a whole lot of money to be made. So, if you play your cards right, there's a slice of that pie waiting for you.
Eligibility and Coverage (Know What You're Fixing)
The scheme is quite specific about what it will cover:
Fire safety defects
Structural safety defects
Water ingress defects
These defects need to stem from dodgy design, shoddy workmanship, or subpar materials that breached Building Regulations at the time of construction. So, no luck if the problems come from poor maintenance, bad management, or some botched DIY job later on.
Practicalities of Applying for the Funding
Interim Remediation Scheme (Start Making Money Now)
Launched on December 11, 2023, this scheme is all about getting emergency fire safety issues sorted out pronto. Owners' Management Companies (OMCs) can apply for funding by submitting an online application to the Housing Agency. If your application is up to snuff, you can expect a response within 7 to 10 working days. Shockingly fast considering how slowly other grants and schemes come through. This aims to provide quick cash to get those urgent fixes done.
Main Scheme (The Big Payday Coming in 2024)
The main event is expected to kick off in 2024. Administered by the Housing Agency, the main scheme will fund comprehensive remediation work for the entire building—common areas and individual units alike. This is where you can really get your teeth into it, tackling all sorts of defects and securing ongoing business for extensive projects. Keep your clients informed and ready to jump on this once it goes live.
Legacy Defects Scheme (Get Paid for Past Work)
Already done some work? No problem. The scheme also covers remediation costs for work that’s already been completed, provided it meets certain conditions and was agreed upon with local authority fire services. This means you can potentially get reimbursed for past efforts, adding a nice little bonus to your bank account.
By following these tips, not only do you help your clients navigate the new remediation funding scheme like a pro, but you also set yourself up for financial success. Provide valuable services, build strong relationships, and secure steady work through the scheme. Your bottom line will thank you. Now get out there and make some money!
For expert design work, concept artwork, renders, and detailed drawings, contact Abacus Design today. We can beef up your client's applications and your own project proposals. Let us help you turn these prospects into profitable projects. Reach out now and get ahead of the game!
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