STATEMENT
Thursday, 13th February, 2025
Important update on Interim Remediation Scheme for fire safety defects in apartments and duplexes
The Housing Agency has become aware that the way the Interim Remediation Scheme (IRS) for fire safety defects in apartments and duplexes is currently operating is not fully compliant with national and EU procurement law. Addressing this issue to ensure that the scheme is fully compliant with procurement rules is essential. Unfortunately, this is likely to cause the IRS process to last some months longer than previously expected.
The IRS process will continue once these procurement issues are resolved. It is important to note that the IRS will continue to operate as normal in all other respects including the scope of works included and the funding levels being provided. There are no changes in any other area other than procurement. The Government as set out in the recent Programme for Government, remains fully committed to helping affected homeowners.
The Housing Agency received legal advice on the current tendering processes associated with the scheme and it was confirmed that the funding provided by the Agency to Owners’ Management Companies (OMCs) requires compliance with public procurement law. This is the case even though the OMC, a private company, will be the legal entity entering into contracts with the Competent Professionals and Competent Builders.
In light of this legal advice, The Housing Agency is now in the process of revising the IRS to ensure it aligns with EU and national public procurement requirements. This work is being undertaken in collaboration with other state agencies, including the Department of Housing, Local Government and Heritage and the Office of Government Procurement.
Given the complexity of the matter and the number of actions required, it is anticipated that it will take some months to amend the process.
OMCs that have applied to the scheme have been advised of the situation and will be updated as soon as details of the revised process are finalised.
The procurement issue came to light as part of an ongoing Pathfinder process managed by the Housing Agency as part of the wider IRS to identify issues that might need to be addressed in advance of the launch of the full statutory Scheme later this year.
To qualify for the IRS, apartments and duplexes must have fire safety defects and must have been built between 1991 and 2013. The scheme provides for the funding of eligible emergency fire safety defect works in order to provide an acceptable level of fire safety in buildings, pending the completion of the full remedial works. Full remedial works, which will include all necessary fire safety measures as well as those related to water ingress and structural damage, will be funded under the statutory scheme to be legislated for.
The IRS only applies if the defects were caused by defective design, workmanship or materials that breached the building regulations that applied when the property was built.
A total of 195 applications, covering 18,670 apartments and duplexes, have been made under the IRS. The final cost of the overall Scheme is estimated at more than €2 billion and this will help to remediate up to 100,000 affected apartments across the country.
