P
pmandcivil
Guest
I’m going to put this out there to all Construction Professionals, Building Contractors, Bona-fide sub-contractors, suppliers etc. I personally would like to see much tighter regulation of the self-build sector. Starting with the 2 main areas which I believe are causing a lot of harm to the industry, the black market and lack of enforcement of Building Control.
Black Market
Considering the amount of money that is being spent on self-builds, from a reasonably small mortgage for an extension to a full blown mortgage for a large house, there is abseloutely no interest in the sector by the Revenue. Consider this, an average mortgage for a new build could be maybe €250,000. This would represent a nice turnover for a small business. A small business would be subject to the following rules.
1. Every business has to file accounts and account for virtually every penny when required to by the Revenue.
2. Every payment to a sub-contractor is subject to Relevant Contract Tax or the contractor has to provide a payments card before payment can be issued.
3. Valid receipts have to be recorded and filed for all materials detailing name and address of supplier, VAT number, rate of VAT etc.
4. Direct employees must be provided with a payslip, P60, pension, insurance etc.
5. VAT returns, RCT returns, Employee tax returns must be made every 1/2 months as required.
There is far too much cash floating around being paid to dodgy contractors and sub-contractors and social welfare/ dole fraudsters. Genuine businesses are going under due to not being able to compete with uninsured, unregistered fraudsters with no overheads or tax demands. Why aren’t the Revenue targeting the direct labour builds? From what I see in my area, the unregistered dole scroungers who are also doing nixers are living a better lifestyle than genuine business people who don’t have the comfort of Social Welfare handouts. It’s easy to work for €70 or €80 a day if your weeks wages are being topped up by nearly €200, along with the medical card, rent allowance etc. I have asked people to come work for me through the books and they have turned me down and demanded cash payment only. I’ve told them where to go!
Banks are handing out huge sums of money and nobody seems to care where it goes. We all know its happening but nothing is being done about it. We also know about people pocketing the cash and buying new cars, going on fancy holidays and other extravagances using mortgaged money. Now these are the same people who are under pressure to pay back the 110% mortgages. Were they made account for the money would self-builders be so quick to hire on the black market?
In my mind, self-builders should be subject to the same taxation and accountancy rules as a business.
Building Control
The current system is a sham. There is effectively no Building Control in this country. The current way of self-regulation has to stop. I have never met an officer from the council Building control office on site in my entire professional life. (14 years). I have worked on both large scale developments (500-600 units) and the one off home builds. What exactly are these Building Control officers doing?
The current system of building control is effectively done by self-builders who:
a. Hire the cheapest Architect/Engineer/Technician they can find.
b. Hire the Architect/Engineer/Technician who is prepared to sign off on whatever they need.
c. Only call the professional when they need money
d. Expect the professional to sign off on work not completed/incomplete/bad workmanship. If they don’t they wont get paid.
Now I’m not saying anything against the person doing the signing off, the majority of professionals are decent honourable professionals who value their integrity and professional identity. But there are the unscrupolous ones who are usually the cheapest, who don’t even visit the site before submitting certification and who are exploiting the lack of Building Control. I used to do mortgage supervision but have stopped doing it as I felt I was leaving myself wide open to litigation if I signed off on some of the stuff I was asked to. I have lost money due to this but I wouldn’t be able to take the hit if I was sued for something which I may not have even seen. I have seen sewerage put in wrong location on site, cheap septic tanks put in where different system specified. Houses built substantially bigger than on plan, additional windows, site entrance position moved, etc etc. Some of the self-builds I’ve seen recently have been nothing short of shambolic.
Don’t get me started on Part L. I have not done one BER for a new build in the period since the current Building Regulations came into force even though a final BER is supposed to be completed before occupation of a new dwelling. How many air-pressure tests are being done on new builds?
What can we do to get better enforcement in this country? Lobby your county counciller? The new TD’s. Form a pressure group? The CIF are supposed to represent the construction industry but from my knowledge they don’t have any interest in the self-build sector .
I’m open to speaking to like minded professionals and contractors. I’m not prepared to be silent on this any more but I’m just one voice. Would a collective group be the way to go?
All opinions welcome
Black Market
Considering the amount of money that is being spent on self-builds, from a reasonably small mortgage for an extension to a full blown mortgage for a large house, there is abseloutely no interest in the sector by the Revenue. Consider this, an average mortgage for a new build could be maybe €250,000. This would represent a nice turnover for a small business. A small business would be subject to the following rules.
1. Every business has to file accounts and account for virtually every penny when required to by the Revenue.
2. Every payment to a sub-contractor is subject to Relevant Contract Tax or the contractor has to provide a payments card before payment can be issued.
3. Valid receipts have to be recorded and filed for all materials detailing name and address of supplier, VAT number, rate of VAT etc.
4. Direct employees must be provided with a payslip, P60, pension, insurance etc.
5. VAT returns, RCT returns, Employee tax returns must be made every 1/2 months as required.
There is far too much cash floating around being paid to dodgy contractors and sub-contractors and social welfare/ dole fraudsters. Genuine businesses are going under due to not being able to compete with uninsured, unregistered fraudsters with no overheads or tax demands. Why aren’t the Revenue targeting the direct labour builds? From what I see in my area, the unregistered dole scroungers who are also doing nixers are living a better lifestyle than genuine business people who don’t have the comfort of Social Welfare handouts. It’s easy to work for €70 or €80 a day if your weeks wages are being topped up by nearly €200, along with the medical card, rent allowance etc. I have asked people to come work for me through the books and they have turned me down and demanded cash payment only. I’ve told them where to go!
Banks are handing out huge sums of money and nobody seems to care where it goes. We all know its happening but nothing is being done about it. We also know about people pocketing the cash and buying new cars, going on fancy holidays and other extravagances using mortgaged money. Now these are the same people who are under pressure to pay back the 110% mortgages. Were they made account for the money would self-builders be so quick to hire on the black market?
In my mind, self-builders should be subject to the same taxation and accountancy rules as a business.
Building Control
The current system is a sham. There is effectively no Building Control in this country. The current way of self-regulation has to stop. I have never met an officer from the council Building control office on site in my entire professional life. (14 years). I have worked on both large scale developments (500-600 units) and the one off home builds. What exactly are these Building Control officers doing?
The current system of building control is effectively done by self-builders who:
a. Hire the cheapest Architect/Engineer/Technician they can find.
b. Hire the Architect/Engineer/Technician who is prepared to sign off on whatever they need.
c. Only call the professional when they need money
d. Expect the professional to sign off on work not completed/incomplete/bad workmanship. If they don’t they wont get paid.
Now I’m not saying anything against the person doing the signing off, the majority of professionals are decent honourable professionals who value their integrity and professional identity. But there are the unscrupolous ones who are usually the cheapest, who don’t even visit the site before submitting certification and who are exploiting the lack of Building Control. I used to do mortgage supervision but have stopped doing it as I felt I was leaving myself wide open to litigation if I signed off on some of the stuff I was asked to. I have lost money due to this but I wouldn’t be able to take the hit if I was sued for something which I may not have even seen. I have seen sewerage put in wrong location on site, cheap septic tanks put in where different system specified. Houses built substantially bigger than on plan, additional windows, site entrance position moved, etc etc. Some of the self-builds I’ve seen recently have been nothing short of shambolic.
Don’t get me started on Part L. I have not done one BER for a new build in the period since the current Building Regulations came into force even though a final BER is supposed to be completed before occupation of a new dwelling. How many air-pressure tests are being done on new builds?
What can we do to get better enforcement in this country? Lobby your county counciller? The new TD’s. Form a pressure group? The CIF are supposed to represent the construction industry but from my knowledge they don’t have any interest in the self-build sector .
I’m open to speaking to like minded professionals and contractors. I’m not prepared to be silent on this any more but I’m just one voice. Would a collective group be the way to go?
All opinions welcome