The developer of a Dublin residential block that encountered roof deterioration just over ten years after its construction has proposed to award the proprietors €150,000 as a remedy to a lawsuit over construction flaws. It was discovered by building examiners that there were fire safety issues due to improper compartmentalisation and insulation of the roof, leading to potential quick-spreading fires.
Owners had previously been billed nearly €11,000 each for repair work, which has now completed, including rectification of the supporting steel structure and the substitute of the plywood underlay. Two other building blocks within the complex exhibited similar problems, although they were not as bad. It has been advised to replace the plywood with a metal deck in these blocks as well; however, that process has yet to start.
Hyde Square was initially proposed in 2005 and the final section was sold by 2007, with prices starting from €335,000. The development was undertaken by Megard Ltd, who outsourced the construction to Purcell Construction, a firm based in Galway.
In 2019, the apartment owners initiated a legal claim against both Megard Ltd and Purcell Construction. Even though Megard Ltd is currently in liquidation, Purcell Construction has suggested a payment of €150,000 as a resolution to the legal proceedings. Though no defence has been presented by Purcell Construction, the possibility exists that they may argue that they are not accountable for compensating the owners due to the expiration of the statute of limitations, where legal action should typically take place within six years after the construction was completed.
A vote is set to take place this Wednesday as the owners decide whether to accept the company’s offer. The management company suggested that the payment might partially offset the considerable insurance premium rise for the building. The building’s insurance escalated from €14,316 in 2017 to a forecasted €80,400 in 2024. The completion of remedial work on the two remaining blocks is estimated by the owners’ management company to be around €960,000.
A higher offer was suggested by the owners management company from Purcell, but it was declined. No comments have been received from the construction company yet.