Safeguards for third-party property

Until the late 1980s, most of the development took place away from urban areas. The development activity that took place in these zones had little or no effect on established urban areas. As a curtailment on urban sprawl was introduced in 1989 and developable vacant plots became less available, developers turned to the redevelopment of existing properties, thus resulting in a significantly increased impact of construction activity on the quality of people's lives.

The inconvenience has been mitigated to some extent with the introduction of the Environmental Management of Construction Sites Regulations in 2007 but more needs to be done, particularly in relation to concern that demolition and excavations cause to neighbours.

Some days ago I launched the public consultation on two pieces of legislation. The first one is the Building Regulations Act. It is primarily a law that enables the minister responsible to issue building regulations.

The registration and classifications of contractors is not possible in the current legal context. The new law will address this. Registration is needed to ensure that certain types of works are carried out by persons who have the appropriate know-how. This will provide for better quality and increased safety. Following the enactment of the law, legal notices will be issued to make registration obligatory for different categories of construction activities.

The second piece of legislation that has been launched for public consultation is the Regulations on Avoidance of Damage to Third Party Property during Construction.

Construction activity can be a source of concern and distress to neighbours. People are concerned for their safety and health but also for any damages that may result to their property. Residents consider it unfair that they have to spend time and money (for architects and lawyers) to safeguard their property and, in the eventuality of damage, to get adequate compensation from the contractor.

The government's thinking behind the proposed new regulations is to reduce instances where damage to third party property occurs.

The regulations make it compulsory for all construction works to be insured to cover any damages that may result to third parties. In fairness, there are many serious contractors who insure all their construction activities. With the new regulations, all building contractors will need to be appropriately insured. Sub-standard contractors will need to improve the work methods failing which no insurance company will be willing to provide them with cover. With no insurance cover, it will be very difficult for them to get new job commissions.

Another requirement of the new regulations is the submission of a method statement prior to start of works. The method statement is to be submitted to the Building Regulations Office and describe how the works are to be carried out. It should also include condition reports of adjoining properties. (For very minor works, these requirements will be brought into force at a later date.) Insurance cover and the method statement are of particular importance for demolition and excavation as these are the works where damages may result if incorrect methodologies are adopted.

The situation today is that when a neighbour is worried about works taking place next to his property, he has no one to turn to. If he calls Mepa he would be correctly informed that it is not within its remit.

With the new regulations, neighbours will be able to view the method statement of any works as these will be readily available from the Building Regulations Office and from Mepa. The neighbour may make submissions to the Building Regulations Office.

This office will have the authority to stop works if the method statement is inadequate or if the works are not being carried out according to the method statement. Providing neighbours with information enables them to take effective action if and when a contractor does not give adequate attention to their concerns. The new regulations will hopefully reduce the potential for conflict between building contractor and nearby residents. Residents can acquire greater peace of mind.

Even with insurance and the submission of a method statement, there will still be instances where damages will result to neighbouring property and where the neighbour will need to initiate proceedings in a court of law.

The delays and costs involved puts the neighbour at a disadvantage. Arbitration is a quicker alternative to a court of law but both parties to a dispute have to agree to refer to arbitration. My ministry is exploring the possibility of making arbitration mandatory in relation to disputes involving third party damages resulting from construction activity. This is being considered following a suggestion made during the public consultation process.

The proposed two draft pieces of legislation can be viewed on www.mrra.gov.mt. A public consultation meeting will be held today at 6.30 p.m. at the Works Division Project House, Floriana.

Comments can be submitted to the Ministry of Resources and Rural Affairs on e-mail buildingregulations.mrra@gov.mt until June 15.

Mr Pullicino is Minister for Resources and Rural Affairs.