Dean Burrowes | Replacing real estate assets damaged by Hurricane Beryl

Real estate is one of the most dynamic and lucrative sectors in any economy as it provides an excellent store of value for individuals and institutions. It is a stable and appreciating asset which contributing to wealth accumulation.

Savills, a global property investment authority making a presentation at a forum convened by the Royal Institute of Chartered Surveyors, stated that “with a total value of $379.7 trillion at the end of 2022, real estate is worth more than the global equity and bond markets combined and is almost four times the size of global gross development product”.

The Jamaican estate industry in many ways reflects the global trend in property ownership as an asset, with the average Jamaican maintaining a significant store of his wealth in his property represented by his home, shop, office, or farm, each contributing to the stock of property in the country and valued as part of Jamaica’s Gross Domestic Product.

The damage to residential and commercial buildings resulting from the passage of Hurricane Beryl in Manchester, St Elizabeth, and Westmoreland affected the most valuable asset of many: their properties. Many of these property owners would not immediately enable to replace or repair their damaged properties. And many of them who, I am almost sure, are uninsured. Those property owners who had insurance in place against natural disasters would be those who were compelled to do it because of mortgage commitments.

The Government’s offer through the National Housing Trust of discounted loans and grants to those who suffered loss provided some relief and ensured that significant losses in property asset value were avoided or mitigated. Many of the property owners affected by the hurricane had accumulated their assets incrementally over a period of years possibly adding one room at a time, would have had no provision in place to offset the consequence of any single natural disaster. From the examination of many of the damaged buildings, it is apparent that many of the structures were not constructed employing good construction techniques.

INFLUENCED

The property owner’s contemplation to replace or repair their house would first be influenced by the need to protect what was salvageable. In some cases, this involved using the first available materials at hand because materials originally used in the construction of the building would not necessarily be immediately available hence substitutes needed to be acquired. Where such situations arise, the advice of a professional is recommended to ensure that the replacement material is adaptable and the spend justified.

In making repairs, property owners should not forget the overarching effect of climate change, which portends the recurrence of similar natural disasters occurring with more frequency. Repairs undertaken must, therefore, be robust enough to minimise damage should there be a recurrence, with particular attention given to the roof frame and structure, which is the most vulnerable element to wind damage.

It is always important to seek professional advice whenever there is need for repairing or renovating after a natural disaster. Architects, engineers, quantity surveyors can provide guidance on matters relating to repairs and renovations and the likely associated cost.

CONSIDERATIONS

Ten important considerations when undertaking repairs or renovations are:

1. Employ only reputable building contractors for executing repairs who can be held liable for substandard workmanship. Only accept best construction practices. Where possible, ask to see certification from the artisan or tradesmen or at minimum, obtain references of experience from previous employers.

2. All repairs should contemplate the structural and or economic life of the building. The materials chosen should be suitable to meet these requirements;

3. There should be no compromise on the structural integrity of the building. Structural elements destroyed should be replaced. Non-structural features are always optional. Use only good-quality materials in effecting repairs. Salvaged materials should not be reused without thorough examination as they may possess defects that contributed to the failure of the element in the first place.

4. Repairs should match existing construction technique. Replacement should be considered where failure was caused by inherent weakness in the existing element.

5. Where repairs are made, new material should always be fitted to the old and not the old adapted to accept the new.

6. Repairs should, wherever possible, be reversible and should not preclude the ability to execute additional work in the future.

7. Damage to roof and roof structure was the most predominant failure. It is critical that roof construction be executed properly. For pitch roofs, the original pitch should be maintained. Corrugated metal sheeting is appropriate if the original roof covering is unavailable. Replacement of blocking boards, fascias, and boxed eaves are important in minimising wind damage. Hurricane straps holding down bolts are essential.

8. Windows and doors must provide adequate resistance to winds. Locking devices should ensure stability.

9. Adhere to the Statutory Authorities Building Standards. This includes restrictive covenants, which are not only applicable to new buildings.

10. Demand a contract for the works proposed in which the works and associated costs and payment terms must be clearly stated. Always ensure that the contract is vetted by a professional.

Dean Burrowes is a chartered quantity surveyor and arbitrator and partner at Burrowes and Wallace CQS. He is a council member of The Jamaica Institute of Quantity Surveyors and chairs the Royal Institute of Chartered Surveyors Jamaica chapter. Send feedback to columns@gleanerjm.com.