S.L. 623.6 Art. 6Insuranceandbank guarantee. 

(1) Repealed by Legal Notice 37 of 2024.

(2) Repealed by Legal Notice 37 of 2024.

(3) The developer shall submit a bank guarantee to the Director, for all construction activities, other than those listed in regulation 26. The value of the bank guarantee shall be of three thousand euro (€3,000) for each storey of developed third party property or properties which is or are contiguous to a development site, for the first five (5) properties and a further one thousand euro (€1,000) for each additional contiguous property, up to a maximum of forty thousand euro (€40,000):

Provided that the Director shall exempt the developer from the submission of a bank guarantee, as indicated, if the developer submits to the Director a certified statement issued by an insurance company attesting that the developer is insured in such a manner as to cover indemnity for damages to third party property, including damages of a minor nature:

Provided further that the developer shall submit in this case, a bank guarantee to the Director, equivalent to the maximum amount in excess indicated in the insurance policy.

(4) Any third party having a claim for damages against the developer shall immediately inform the Director and the developer. The Director shall retain either the full bank guarantee up to the maximum of forty thousand euro (€40,000) calculated according to sub-regulation (3), or a part thereof equivalent to the amount being claimed by third parties until such time that a court of law or arbitral award decides on the matter, by means of a judgement or award, which is final:

Provided that in the case where an amicable settlement is reached with respect to such claim for damages, the parties shall submit to the Director the settlement agreement, which shall also make a clear provision for the bank guarantee withheld by the Director and its release.

(5) Should a court of law or arbitral award liquidate damages against the developer, the bank guarantee shall be forfeited in favour of the Director, who will in turn, under the order of the court or in terms of the arbitrations award, shall effect payment to any party awarded damages, in accordance with the judgement of the court or the award of the arbitration.

(6) On completion of the project, the developer shall, within two (2) weeks, submit a certification issued by the in charge of perit the project that the works have been completed. For the purpose of this sub-regulation project completion shall mean the completion of all structural and other works including the roof, screed of roofs, terraces and yards, the closure of apertures and other works to render the building sealed against the ingress of water.

(7) The Director shall, as soon as he is in receipt of the certification from the perit in charge of the project, mentioned in sub-regulation (6), immediately place on a website prescribed by the Director, a notice giving the date of notification of project completion. The perit in charge of the project shall also within (2) two weeks, notify all the owners and occupiers of those properties, for which a condition report had been submitted by the developer’s perit, with the details of such certification regarding project completion.

(8) Following a request made by the owner of a contiguous property, the Director shall retain the bank guarantee in those cases where such owner submits proof that judicial or arbitral proceedings for compensation of damages caused to the property have been initiated.

(9) Unless such a request from the owner is received by the Director within three (3) months from the date of notification of project completion, the Director shall release the bank guarantee:

Provided that a bank guarantee shall be released if the Director has been informed in writing by the owners of the contiguous property, as indicated in the method statement, that they do not have ulterior claims.