The Malta Development Association has welcomed the Government’s announced Industry Guarantee Reserve Scheme to assist property owners who suffer damage arising from nearby construction works. The Association said it has called for a practical means of resolving genuine claims for several years.
The scheme is to be administered by the Building and Construction Authority (BCA) and funded through fees and contributions paid by developers, building contractors and applicants to the BCA. The MDA said that it believes these charges must be clearly defined, proportionate and used for the compensation mechanism and its related costs.
The Association added that property owners who suffer genuine construction damage should have a faster and more effective route to compensation, without being forced into lengthy and costly legal proceedings. At the same time, responsibility for damage must be properly established and those funding the scheme must be treated fairly.
The MDA also welcomed the proposed assistance by the BCA to affected property owners pursuing claims where responsibility for damage is established. The rules should set out clear procedures for assessing damage, deciding claims and resolving disputes.
The Association concluded by saying that it looks forward to reviewing the scheme’s legal and administrative details and continuing its discussions with the Government and the BCA.”The measure must work for affected property owners while remaining fair to responsible developers, building contractors and applicants.”
Photo: MDA