Construction company offers €150,000 to owners of defective Dublin apartments

€960k repairs had been advised to fix badly built block

A construction company has offered to make a “financial contribution” of €150,000 in relation to defective apartments built in Hyde Square in Dublin 8.

Owners are to vote this week on whether to accept or reject the offer.

The type of plywood used in the original roof deck of the apartment blocks was deemed “not fit for purpose” and led to deterioration.

Another defect was identified in the interconnection between the roof structure of Block A and the walls that supported it.

While remedial works have been carried out on Block A, owners were previously advised in August 2022 that the cost of completing the remaining repairs would be about €960,000.

Due to the known defects, the insurance premium for the development has risen from €14,316 to more than €80,000, with only one insurer willing to provide a quote.

Legal proceedings were launched against the developer, Megard Ltd, and subcontractor Purcell Construction.

However, a budget of €15,000 in bringing the case has been exhausted.

Solicitors representing the owners’ management company have advised that if they vote to accept the offer, this would bring the court proceedings to a “full conclusion”. When the owners bought the apartments back in 2007, they signed a contract with Megard, which subcontracted the building work to Galway-based Purcell Construction.

Purcell has denied liability, saying it was not the developer or vendor of the apartments, and played no role in construction design.

Megard is currently in liquidation, with the liquidator stating there are no assets to meet any claims.

At an owners’ meeting last October, the management company voted on Purcell Construction’s offer of €150,000, which resulted in a tie.

The members are now being asked to vote again this week.

However, some have expressed concerns about the fact the terms and conditions of the offer have not been finalised. A request to Purcell to increase the offer was also rejected.

Liston and Co Solicitors, representing the owners’ management company, has advised that the offer be “made on a full and final basis”. The owners have also been advised that they may be in a position to avail of the Government’s scheme that will provide redress to owners of defective Celtic Tiger-era apartments.

The management company has said the offer of €150,000 could be used to offset part of the insurance and professional fees incurred due to the original building defects.

Owners say their yearly management fees have also significantly increased in the meantime.

Future inspections are to be carried out to undertake assessments of water ingress and fire safety.

The vote on Purcell Construction’s offer will take place today via Zoom.

The Irish Independent contacted Purcell Construction for comment.

‘The insurance premium has risen from €14,316 to €80,000, with only one insurer willing to provide a quote’