A construction company has claimed in the High Court that it is facing a €1.5 million bill over the failure of the Department of the Environment to grant certificates necessary to secure tax reliefs on a student accommodation development in Tallaght, Dublin.
John Paul Construction Ltd (JPC), which in 2003 entered a design-and-build contract with Losaid Teoranta for the student apartments at Tramway Court, Old Blessington Road, Tallaght, said the failure or refusal to issue the certificates was on the basis that the systems and components originally used by it in the development, including the system of cladding, were "unconventional".
However, it said, those systems were widely used in other constructions in Britain and Europe and had also been used with some minor differences, in another building development in Tallaght for which the relief certificates were issued.
The relevant professionals had certified the development complied with the building regulations but the tax relief certificates were still not issued and Losaid Teoranta, the developer, had claimed it was unable to sell the apartments, the company said.
After talks with the department, Losaid agreed to install a different cladding system and the department had agreed to issue the certificates.
Losaid had then issued a claim against JPC for €1.5 million for the cost of installing the alternative cladding system which JPC disputed.
Mr Justice Michael Peart granted leave yesterday to Patrick Hanratty SC, for JPC, to bring judicial review proceedings arising from the refusal of certificates for the development at Tramway Court.
James Douglas Hession, a contract quantity surveyor with JPC, said in an affidavit it was intended the development would qualify for reliefs under section 50 of the Finance Act, which provides for tax reliefs on residential accommodation for students.
To qualify, the development had to have a "certificate of reasonable cost" and a floor area compliance certificate. Neither cert was issued after a department official said he considered certain materials forming part of the cladding to be "unconventional".