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Getting Ready for the Concrete Levy: What Builders Need to Know
Kelly Ohlmus

Getting Ready for the Concrete Levy: What Builders Need to Know

Stay ahead in construction with the Defective Concrete Products Levy (DCPL). Understand the changes, anticipate costs, and navigate regulations to keep your projects on track.

In the dynamic realm of construction, where every nail and beam counts, staying ahead of regulatory shifts is a necessity. For tradesmen and small building contractors, adaptability is key to thriving in this landscape of change.

One such significant change on the horizon is the Defective Concrete Products Levy (DCPL), a development that has garnered both attention and resistance from the industry. In response to these concerns, the proposed 10% levy was revised to 5%, and its implementation, initially slated for April, has been deferred to this September. 


What is the Defective Concrete Products Levy (DCPL)?

The Defective Concrete Products Levy (DCPL) is a new levy introduced as part of the Finance Act 2022 to fund a redress scheme for homeowners affected by defective concrete products used in home construction. The levy aims to address the issues caused by these defective products and provide relief to homeowners who have been impacted.


Important Dates and Calculations

Starting from 1st September 2023, the DCPL will apply to the first supply of certain concrete products. It's important to note that the levy will be calculated at 5% of the open market value of the concrete product on the supply date. This means that if you're involved in the supply of concrete products, you'll need to factor in this additional cost.


Understanding Liability and Payment

One crucial aspect emphasised by Revenue is that the liability for payment of the DCPL remains with the entity that first supplies the concrete product within the state. This is a key point to remember, as the obligation to pay the levy does not transfer to the concrete product itself.


Reviewing Existing Contracts and Identifying Risks

To navigate these changes smoothly, it's highly recommended that builders, contractors, and employers review their existing contracts. Legislative changes like the introduction of the DCPL can impact the terms and costs outlined in contracts. By understanding the potential risks and ensuring that your contracts are clear on how the DCPL will be managed, you can avoid any misunderstandings or disputes down the line.


Checking Supply Status and Payments

When purchasing concrete products, it's essential to determine whether the product falls under the category of the first supply in the state. If it does, you'll need to ensure that the DCPL has been paid or is being accounted for in the transaction. This diligence will help you avoid any unexpected surprises when it comes to costs and compliance.


Anticipating Additional Costs

The introduction of the 5% levy on concrete products has raised concerns about the impact on the cost of construction projects. A recent report commissioned by the Irish Concrete Federation (ICF) estimates that this levy could add up to €1,285 to the cost of building a three-bed house. This anticipated increase in costs highlights the need for thorough planning and budgeting in upcoming projects.


Final Thoughts

In an industry already grappling with rising costs due to energy and international crises, the introduction of the Defective Concrete Products Levy adds another layer of complexity for builders and contractors. Staying informed, reviewing contracts, and understanding the implications of this levy are crucial steps to ensure that your projects remain on track and within budget. As the construction landscape continues to evolve, adapting to these changes will be key to your success in the industry.

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