Committee Reports > List of Committees > Joint > 1980 > Committee on Commercial State-Sponsored Bodies > Report No. 12 - National Building Agency, Limited

APPENDIX 4

MEMORANDUM FROM THE DEPARTMENT OF THE ENVIRONMENT

1. GUARANTEED ORDER (LOW COST) HOUSING PROJECT

Background Note:

The White Paper, “Housing in the Seventies”, suggested that the introduction into the local authority housing programme of a guaranteed annual level of outputs leading to a continuing sequence of contracts for building firms could effect substantial savings through more efficient organisation, management and production. The Minister for Local Government faced in 1970 with a constant rise in building costs, decided that a new approach was needed and with the support of other Ministers he put his ideas to the practical test by launching a special housing project, combining guaranteed output with economically designed dwellings built to standard plans and with involvement in the design and planning of the houses by firms who would be manufacturing or building the houses.

Manufacturers and contractors were invited by public advertisement in August, 1970 to submit to the Minister proposals for dwellings which would conform with an outline performance specification (copy attached at Schedule A to this note). The houses could be based on full prefabricated components or could be of rationalised traditional construction. The proposals were expected to offer significant cost economies on the basis of guaranteed orders over a period of three to five years. It was hoped also that the rehousing of families on local authorities’ waiting lists would be speeded up without giving rise to increased demands on public capital. The brief circulated to interested firms included the following:—

(a) Quotations were to be for 100 dwellings a year, or multiples of 100 dwellings.

(b) Proposals could be for dwellings having a shorter life span than traditional dwellings but such proposals would have to reflect proportionate savings in capital cost.

(c) Maintenance costs of the proposed dwellings should be at acceptable levels.

(d) Proposals would have to comply generally with the outline performance specification in such essential matters as stability, insulation, fire risk, etc.

This project was initially known as the “Low Cost Project” and subsequently called the “Guaranteed Order Project”.

Proposals:

About 90 proposals were submitted in response to the Minister’s invitation. Some 50 were selected as constituting firm proposals complying generally with the Minister’s requirements. The principal forms of construction proposed were rationalised traditional building, pre-cast concrete units, and timber framed dwellings. The proposals were examined in detail in the Department on a basis which would enable cost comparisons to be made for the basic superstructure of a three-bedroomed house in the 760 to 850 sq. ft. range plus sub-structure cost on a level site. Twenty-five of the firms who offered acceptable designs, forms of construction and specifications were short-listed on a national, regional and local (rural housing) basis for possible participation in the local authority housing programme. Ten of the proposals were for single storey dwellings of about 700 sq. ft. which were best suited to rural housing needs. These units provided for substantial factory fabrication (six timber framed and four involving the use of concrete panels). The firms short-listed for building two-storey terraced type houses tended to favour nationalised traditional types of construction.

The intention of the Project was to admit all competent builders and all acceptable building systems on an equal basis—or as near to it as possible. Under these circumstances a normal descriptive specification was inappropriate and a performance specification was used instead. This was brief and was essentially a reference to the minimum requirements of the Department’s 1964 circular on housing standards for local authority schemes and to the Building Regulations in force in England and Wales.

The builders’ initial outline proposals were examined by the then Department of Local Government and the contractors whose proposals were deemed acceptable were informed that more detailed documents would be examined before any contract was made. The examination of final contract documents was to be carried out jointly by the Department and the Agency or Local Authority.

Relative Roles of Department and Agency:

In all respects the N.B.A. operates in conformity with national housing policies as defined from time to time by the Minister for the Environment (formerly the Minister for Local Government). The decision in 1970 to make a major break with traditional tendering procedures, basic planning and forms of construction and to institute the Guaranteed Order Project was made by the Minister. As an executive arm of the Minister’s Department the Agency saw its function at the time to co-operate as fully as possible in giving effect to the Minister’s project.

Local housing authorities were advised by circular letter issued by the Department on 3rd January, 1972, of the procedures to be followed by authorities participating in the Project. They were told they need not avail of the Project if they could show that they could get equivalent value by competitive tenders from local contractors and that it was entirely a matter for themselves to decide whether or not to use the services of the N.B.A. Schedule B to this note sets out the Department’s directions in the circular of January, 1972, as to the respective roles of the Department and the Agency in connection with technical aspects of projects and the supervision of work in progress.

With regard to the query by the Chairman of the Joint Committee as to burden of responsibility resting on the N.B.A. to advise the Department about possible inadequacies in proposed house designs and construction forms, the position is that there was close and constant liaison between the technical advisers of the Department and the Agency, practically amounting to a pooling of knowledge and expertise. It can be taken, therefore, that in every instance there was a general consensus at the planning stage by both groups of technical officers that proposals accepted under the Project should, in the light of available information, prove satisfactory.

Supervision of Work in Progress:

Where the N.B.A. was involved, the supervision of construction was a matter for the Agency in consultation with the local authorities participating in the Project. The normal problems associated with supervision were exacerbated in many instances by the non-traditional methods of construction, the “cost saving” approach generally and the fact that in certain instances (including some major schemes) the house designs submitted by builders had not previously been used by the builders.

In a later programme (the Supplementary Housing Programme) which was initiated by the Minister for Local Government in 1973, to replace the Guaranteed Order Project, the standard set by the performance specification was much higher than in the Project and the Agency was involved in the design of a range of sixty modular metric shell plans which have proved eminently successful. With this tougher specification and higher standards of construction, accommodation and environment, no supervision problems of this nature experienced under the G.O.P. have arisen.

2. ROOF PROBLEMS—HOUSES AT FINGLAS SOUTH

At the time the 346 houses in Finglas South were built in the section of that development in parts of which roof truss problems arose, there was no Irish Standard Specification for trussed rafters and it was not normal practice to provide for wind bracing of the trusses. The standard house plans then available from the Department’s Housing Grants Section for private sector houses provided for traditional roof construction—not using trussed rafters.

30 June 1980.

SCHEDULE A

DEPARTMENT OF LOCAL GOVERNMENT

Outline performance specification for low-cost housing proposals

Scope:

Proposals may be submitted in respect of any or all of the following house-types:-

Single-storey detached: Comprising 1, 2, 3 or 4 habitable rooms each. Two-storey semidetached: Comprising 4 or 5 habitable rooms each. Two-storey terrace houses: Comprising 4 or 5 habitable rooms each.

All houses must contain bath or shower, w.c., wash-hand basin and kitchen sink. “Habitable room” is to be understood as rooms intended to be used for dwelling purposes but not used only for cooking.

Quotations:

Proposers should quote the unit prices, at current rates of materials and labour, of their proposals for any or all of the foregoing dwelling types erected on dry level sites or, alternatively, erected on foundation slabs the cost of which should be stated as provisional sums. Where prices are quoted subject to the operation of a Price Variation Clause, this should be clearly stated. Other site works and service connections outside the foundation areas need not be priced. Each dwelling should contain the minimum sanitary units quoted earlier.

Where other fittings e.g. cookers, cupboards, special floor finishes etc. are provided as standard, these should be listed with, if possible, the appropriate P.C. values. In the case of terrace houses separate prices may be submitted for end and intermediate houses.

In quoting prices the proposer should state the minimum annual production of their houses required to sustain the prices quoted, whether this covers their total production or is limited to that of the house types priced and what price variation, if any, could be offered under conditions of increased production; specified in multiples of 100 dwellings. Proposers should also quote the radius in miles from their factory within which they would be prepared to erect their dwellings at the stated price, and the ratio of unit price increase, if any, for each 50 miles radius beyond that. It will be understood that all prices quoted are inclusive of all management, professional and design services.

Information required:

Each proposal should be accompanied by plans and sections accurately drawn to scale of each of the house types proposed. The plans should show the probable disposition of furniture with each room. In addition, a schedule of overall floor areas should be provided and within these, a statement of aggregate areas of living rooms and of bedrooms for each type of dwelling. For purposes of preliminary evaluation an outline specification should be provided explaining the materials and finishes to be used, the forms of construction proposed and the proposed mode and extent of the heating systems.

Minimum accommodation:

No living room shall be less than 13M² (140 square feet) in floor area and no bedroom less than 6.5M² (70 square feet). If possible, no bedroom shall be of lesser width than 2150 MM (7’1”). The minimum aggregate sizes of living and bedrooms are set out hereunder.

Density:

No limitations are placed on plan shape and dimension, but those should be such as would enable the house types to be combined in such a way as could provide layouts normally lying within the following ranges of nett density:-

Ceiling heights:

The nett minimum ceiling height in all habitable rooms shall be as near as practicable to 2400MM (or 8 feet).

Specification:

Pending the issue of the new Irish Building Regulations the proposed house types shall (unless already specifically approved by the Department of Local Government) comply with the general “deemed to satisfy” clauses of the following parts of the Building Regulations 1965 which apply to England and Wales:

In connection with Part D, it should be noted that CP3: Chapter V. (1952) on wind loading is now under revision and, pending the issue of a revised Code, particular attention is drawn to Building Research Station Digest No. 119 of July 1970: “The Assessment of Wind Loads” which is regarded as in line with the expected provisions of the new Code. Should the proposal envisage houses designed in large part of timber it should be noted that the provisions of the Department’s Memorandum H.A. 10, of December 1966: “Timber Housing” enclosed shall apply.

In making evaluations of proposals, the Department will be concerned not only with initial cost and performance but also with subsequent maintenance.

August 1970.

SCHEDULE B

GUARANTEED ORDER PROJECT

Procedure to be followed by housing authorities participating in Project

1. Formal request by housing authority to the Department to participate in the project, giving particulars of site/sites involved, and number of dwellings required.

2. One of the short-listed contractors to be selected by the Department in consultation with the housing authority.

3. A decision to be made by the housing authority whether or not to avail of the special services of the N.B.A. for schemes under the project. (These services are based on the use by the N.B.A. of teams of consultants, experienced in local authority housing, with whom special arrangements suitable to the project have been negotiated. Where the Agency handle a scheme on behalf of the authority they undertake all technical/administrative/supervisory duties subject to close consultation with the authority at all stages).

4. Meeting between Department (and N.B.A. where applicable) and housing authority on brief requirements—written brief from authority to follow meeting.

5. Request by Department and/or N.B.A. to selected contractor to put the preparation of plans, etc. in hands on basis of brief.

6. Plans prepared by contractor under supervision of N.B.A. consultants (or housing authority’s advisers, if appropriate) and approved by Department and Authority.

7. Authorisation of contract if the overall price is acceptable—price to include all site works and development.

8. As soon as the overall price is accepted, the housing authority apply for loan sanction in the normal way. Contractor is authorised in meantime to proceed (on basis of guaranteed orders).

9. Scheme supervised by N.B.A./or housing authority as appropriate. Payments certified and loan drawn in normal way.