BCA Launches €15,000 Financial Assistance For Residents Affected By Construction Damage

The Building and Construction Authority (BCA) is introducing a new financial assistance mechanism to support third parties who suffer property damage due to construction works and are unable to reach an agreement with developers.

The initiative forms part of amendments to the legislation enforced by the BCA, aimed at strengthening protections for the public and adapting the regulatory framework to the current realities of the construction sector.

Under the new service, the BCA will act as an intermediary between affected third parties and developers. While the Authority already provides free professional assistance from architects and lawyers, this will now be complemented by financial support.

Claims will be assessed by an Industry Guarantee Reserve Committee made up of professionals, including architects, lawyers and accountants.

The Committee may approve reimbursement of costs related to damage suffered, up to a maximum of €15,000.

If a developer fails to fulfil their payment obligations, the BCA will assume the third party’s legal rights and may take legal action to recover the funds.

The process begins when damage is reported to the BCA, which may stop construction works and prepare a damage assessment through an architect. If no agreement is reached with the developer or their insurance company, the claim can be submitted to the Committee.

The approved amount will be paid in two stages, with 50% provided upon signing an agreement and the remaining 50% following completion of repair works and submission of the required documentation.

The scheme will be funded through a new contribution paid by developers when submitting applications to the BCA. The funds will be placed in a dedicated Guarantee Reserve to ensure the service’s long-term operation.

The BCA said the measure builds on previous initiatives, including the 138 helpline and professional assistance services, while forming part of wider reforms to strengthen standards and public confidence in the construction sector.

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