ARCITALIA INFORMATION THREE: THE BUILDING PROCESS home property what we do contact
If the design process was initiated before you emerged as a buyer, you
may have some idea of what can be done with your property before you
buy. In any case the design process is stepped up after the
compromesso, when it is
possible to tailor a project to your needs.
Following completion of the design process, an application can be
made for planning approval and contractors invited to tender for the
work on your house. It is also possible to delay the design and
building processes.
However, some properties may require work to ensure that they are
secure, and do not present risks, especially to third parties. This may
also be a good time to think about insurances.
Once planning approval is granted, there is a period of one year within
which building work should start, and a further period of three years
from the date of commencement to undertake the building work.
These regulations may not be rigorously upheld.
However, good manners dictate that work which results in the
disruption of public areas or nuisance (for example, due to scaffolding)
should be completed as expediently as possible.
Planning is largely the responsibility of the local
comune, although
policy-making and ultimate control are vested in higher levels of
government. The area under
a rural comune is generally
small, and may cover no more than a town or a few villages administered
by a geometra (surveyor) or
an architect employed by the
commune.
Given that the Italian planning system is largely based on codes rather
than open-ended strategies, it is not essentially pragmatic or
discretionary. In theory,
planning permission is ‘automatic’ in the event that a project conforms
to the codes and objectives of a local plan.
There is some flexibility, however it pays to stay within the
rules; whether to avoid the loss of planning fees or the penalties
imposed on errant building.
It is also helpful to understand that development is controlled by both
planning regulations and common law.
For example, factors such as roof heights, or roof terraces may
fall under planning and common law.
In theory, you may be awarded planning approval for something
that contravenes common law; that is, something that is contrary to a
neighbour’s rights in terms, for example, of passage, views or light.
It is possible, however, to form agreements with neighbours through
which they renounce their rights.
Hence, the planning system allows for development that might be
potentially ‘illegal’ in terms of common law. Note that any such
agreements made between neighbours should be in writing.
Formal agreements are also useful should you later sell your
property, or should your neighbour sell or bequeath their property.
Formal agreements are best made through a
geometra, architect, or
lawyer, and may also involve paying neighbours for their co-operation.
While easements of common law can be ‘legalised’ through formal
agreements, your project must also conform to planning regulations.
If you sell your house, you will have to formally answer a
question regarding the legality any building work undertaken since 1967.
This is to protect the buyer who would otherwise inherit your
planning problems or misdemeanours.
Minor works may not require full planning permission, although it is
best to assume that whatever you do may involve the
comune in some way.
The comune should be
informed before any minor works begin.
If your house is in a centro storico (conservation area)
anything you do that influences the appearance of your house might be
subject to approval; for example, the renewal of roof tiles or painting
external walls. It might be
sufficient to inform the commune in writing and to confirm that you will
follow the local regulations. Once the declaration is accepted by the
comune you are free to start work.
For extensive minor works you may need a dia, a more
elaborate written submission.
In listed areas, a dia may mean that the approval process
is confined to the commune.
Note however, that if your specific building is vincolata
(listed) then it is likely to be subject to additional regulations
covering exterior and interior works, and any work is likely to involve
the provincial authorities.
Although less common than renovation, it may be possible to replace a
property within a town or village where it is uneconomical or impossible
to rebuild.
If you wish to build a new house on peripheral land, you must first find
a plot that is zoned for new housing.
Your must also assemble sufficient land to build a house.
Given the regulations governing the ratio of land to build floor
space, that might mean a large area of land.
However, while ‘plot ratios’ can mean that the habitable area of
a house may be relatively small, there may be generous allowances for
‘workspace’. This follows
from the spurious assumption that houses are built by those working the
land. In reality, locating
utilities within ‘workspace’ increases the habitable area of the house.
Arcitalia operates as the primary generator in terms of the work done
before projects are submitted for planning permission.
However, beyond the ‘design stage’ Arcitalia will operate on a
consultancy basis, engaging in projects as agreed with the client.
Given its role in the design stage, Arcitalia provides the basis
on which an architect, engineer or geometra will apply for planning
approval. In effect, that
professional will act as a ‘director of works’ whose responsibilities
are defined in law and by the respective professional institutions, and
will assume all normal responsibilities for the organisation and control
of the construction process, and for all quantitative and qualitative
aspects of the development of a project on site.
In other words, the normal contractual situation for Italian
architects, geometri or engineers will prevail.
Arcitalia’s involvement with the
construction stage will be as agreed with the individual client.
Its primary roles might be to
monitor the construction process, determine detailed design issues on
site, and act as an intermediary between the client, the director of
works and other parties. This system allows Arcitalia to operate as the
primary interest in the design stage, and for the normal conditions for
Italian architects, engineers and geometri to prevail during the
building stage, when Arcitalia can function to further design issues,
monitor construction and act as a point of liaison for all parties.
Professional fees
The involvement of Arcitalia and other professionals are subject to
separate agreements.
Pricing
building work
Estimates for individual projects consist of prices and rates.
Prices are given for measurable elements and rates for work that
cannot be measured until the work is underway or completed.
Italian estimates do not generally include provisional sums.
Thus, the total amount quoted by a builder will generally not cover work
that could not be accurately measured, so the amount you will pay will
be higher than the sum given as the total in the contract.
Moreover, there is no contingency made for additional works or
additions to work that is covered by a price.
Your budget should also allow for IVA (VAT) and professional
fees.
You should also allow for all other contractors and forms of work not
covered by the builder’s contract.
The obvious possible additions relate to: plumbing, electrical
work, gas supply, joinery, stonework, tiling, ironwork, and kitchens.
There will also be other charges: for example, for a temporary
electricity supply, and the disposal of waste. Charges are also made by
some comuni for the use of street space used to store materials and
space covered by scaffolding.
There are a some characteristics in the Italian system that can benefit
the client. For example,
Italian plumbers may quote for the provision of water and waste pipes to
a number of points, but exclude from a quotation the cost of the
sanitary fittings, boilers and radiators attached to those points.
Electricians will generally exclude the provision of light
fittings. The builder is
not likely to allow for kitchen fittings.
The provision of floor tiles is also likely to be excluded -
although laying tiles will be covered by the builder’s or tiler’s
estimate. The cost of
providing doors and windows may also be excluded.
In short, any element of the building beyond the ‘bodywork’ that
involves choice and variable prices may be excluded, even though the
manual work involved may be covered by a unit rate in the contract.
For the client, this system affords greater control over the
nature, quality and costs of fittings and finishes.
Arcitalia’s clients benefit from agreements with suppliers regarding
prices. We pass on the full
value of the discounts awarded on the basis that we maintain
long-standing relationships with suppliers. In effect, we establish
separate accounts with suppliers in the name of the client, who then
pays directly for materials as billed.
Fixed price and 'all-in' contracts provide alternative systems. However, fixed price contacts may be more expensive, and 'all-in' contracts require every aspect of the building work to be specified accurately - a goal that is practically impossible in renovation projects.
IVA (VAT)
Where possible we will continue to seek certification for projects to
allow clients to pay ten per cent rather than twenty per cent IVA (value
added tax). However, regulations regarding IVA and the building process
are subject to frequent alterations.
Note that tax on sanitary fittings, tiles and kitchen fittings
are generally paid at twenty per cent. Tax on professional fees is also
paid at twenty per cent.
The Cost of Building
Building costs in Italy are generally given in terms of rates per square
metre for different forms of development.
For extensive renovation
projects where only some of the external walling will be retained you
should allow roughly 800-1.100 euro per square metre for a completed
project or roughly euro 100.000 for 100 square meters of space. Note
however, that is to create what is in effect a new building in that all
floors, roofs internal walling, services and finishes will all be new.
If a renovation does not involve
some of those elements then the estimated price can be reduced.
For example, if new roofs cost roughly 140 euro per metre, if you
do not need a new roof you expenditure per metre will fall by that
amount.
Building from scratch carries much the same costs as a ‘complete
renovation’. The difference
in your overall budget will lie in the costs of land as opposed to the
cost of a property requiring renovation. However, a property requiring
less extensive or partial renovation may cost less that building from
scratch. In comparing finished properties, it is also worth noting that
a well build renovation may be on par with a new building in terms of
such factors as roof insulation, double glazing, and so on. There will
however be architectural differences in the character of new as opposed
to renovated properties.
Apartments are generally more expensive to buy than houses for extensive
renovation. That can also
reflect their location as most apartments are in town or cities while
houses requiring extensive renovation are often in villages.
The difference in buying costs can vary, but a large and
attractive apartment requiring relatively extensive renovation might
cost in the region of twice or three time more than a rustico requiring
extensive renovation.
However, to some extent that price difference is set against relatively
lower building costs, even where an apartment requires extensive
renovation. For apartments you
might allow roughly 400-800 euro per square metre for building work.
There is a problem, however, in that the extent of renovation works to
apartments is more variable, and there is a greater range in terms of
the quality and costs of finishes.
As the ‘employer’, the client has a range of responsibilities under
Italian law. Unregistered
labour, or workers operating “in nero” can pose a treat to the
client. Thus, building in
Italy is akin to building anywhere else – it is largely a matter of
employing builders and subcontractors that offer, not only good work at
the right price, but also security with regard to the client’s
interests.
Many clients are happy to take a ‘key in hand’
attitude to the
building process. Others
want a degree of involvement that can range from occasional visits to
working on site.
Opportunities to get physically involved generally arise either before
the builder has come on site or after the work has progressed to the
point that walls are plastered.
Prior to any building work, clients might help clear and prepare
the building. Some clients
might also help prepare the site by undertaking any small (and safe)
demolitions. However, this
should only be done under supervision, and after the building has been
surveyed and planning approval has been granted.
Building
sequence: extensive renovations
After your property has be cleared of all unwanted loose items and
debris, demolitions are undertaken - beginning with the roof and
unwanted walling. The
rebuilding process invariably begins with the (1) external walls, and
particularly walls associated with the roof.
Then, the (2) roofing work is undertaken, after which work can
begin on (3) internal floors and (4) internal walling.
The plumber and electrician install the tubes and pipes that will
carry the services. Walls
and ceilings are then plastered, and ‘grounds’ are placed in openings
for windows or doors. When
plastering is complete, the building is ready for ‘fitting out’.
Windows and doors are fixed, and plumbers and electricians return
to fit sanitary and electrical fittings. The final stage then involves
tiling and painting.
Postscript:
In this litigious age, this document comes with all the usual
disclaimers. The information and
opinions contained therein are those of the author and not of any other
individual of agency.
However, this document is not offered for sale and the author bears no legal
responsibility for the contents or any consequences arising thereof.
The purpose of this booklet is to offer some understanding of the issues
that commonly arise in buying and developing property in our area.
It will be revised as new or neglected issues come to light.
The author welcomes all suggestions as to how the document might be
expanded or improved.