The homebond scheme is operated by the National House Building Guarantee Scheme Company Limited, which is a private company originally set up by the Construction Industry Federation and the Irish Homebuilders Association with the active encouragement of my Department. The operation of the scheme, as such, is however primarily a matter for the company. The homebond scheme provides a guarantee to purchasers of registered new houses against major defects in construction for a period of ten years after completion. In addition, homebond assists the house building industry to improve construction standards through dissemination of advice and guidance. Liability for defects lies in the first instance with the builder. It is only in the event of default by the builder that the homebond guarantee comes into operation.
As an alternative to the homebond scheme, insurance cover against major construction defects in new houses is now available from at least one insurance company. Compliance with the minimum building standards prescribed by the building regulations 1997 to 2002 is primarily the responsibility of the designer, builder, and owner of the building works involved.
Under the Building Control Act 1990, local building control authorities have power to enforce the building regulations. In the circumstances, it is not proposed to introduce a regulatory authority along the lines referred to in the question.
