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12.30 pm
Mr. Elfyn Llwyd (Meirionnydd Nant Conwy): I am pleased to have secured parliamentary time to debate compulsory indemnity insurance for chartered architects and architects generally, which is of considerable importance. The unfortunate set of circumstances that befell my constituents Mr. Gareth Jones and Mrs. June Jones have repercussions for thousands of people throughout Great Britain. I wish to make it plain that I have nothing but the highest regard for architects as a profession, and I know that their professional standards are among the highest in the world. It is, however, the exception that frequently proves the rule.
In 1989, Mr. and Mrs. Jones purchased a parcel of land for the purpose of erecting a dwelling house--their home. They had saved assiduously to build their dream home in the village of Penmachno near Betws-y-coed in my constituency. It was Gareth Jones's home village, and he had spent many a long year working throughout the United Kingdom and beyond to secure enough capital to purchase their dream home.
In 1990, Mr. and Mrs. Jones began making plans in earnest, and, of course, they had to consider who was going to prepare the plans. Mr. Jones had offers from part-time building consultants and architectural drawers who would prepare all the plans, submit them for planning approval and allow for inspection at a cost of less than £500.
Being mindful of the fact that this was probably the greatest financial commitment that he would enter into, Mr. Jones decided that he should instruct a chartered architect to have added security if "something should go wrong." So it was that my constituent reasonably opted for the services of a chartered architect, despite a fourfold increase in fees. Mr. Jones was happy to pay the extra in view of the transaction's importance to him and to his family.
Mr. Jones consulted a chartered architect, Mr. D. J. Broomfield, RIBA, who practised at Colwyn Bay, Clwyd. Plans were drawn up, submitted to the borough council and approved. Mr. and Mrs. Jones paid Mr. Broomfield £2,000 to include the necessary inspection fees and supervision, which would lead to an architect's certificate. There were mistakes in the plans that were never communicated to Mr. and Mrs. Jones, but, in any event, the building work was commenced in earnest and my constituents were happy to see their dream home taking shape.
Unbeknown to them, however, the local planning authority and building control officer served a rejection notice on Mr. Broomfield, referring to no fewer than 17 problems with the property. Among the problems were water ingress through the gable end, the porch, severe cracking in the plasterwork and inadequate drainage around the property--all substantial items. It transpired that Aberconwy council had written to Mr. Broomfield about all those items, but he must have concealed the letters, and never uttered a word to the builder or to my constituents.
Mr. and Mrs. Jones then found that they were not able to communicate with the architect. Calls went unanswered and letters unacknowledged. Unbeknown to them,Mr. Broomfield was undergoing personal problems, culminating in his taking his own life in January 1993.
The following is a brief list of problems at the property. There was considerable rising and penetrating damp. There were problems on the chimney to the lounge involving the cavity tray. There was an absence of apron flashing. A chimney stack on an outer cavity wall was wrong. The outer leaf and the cavity were wrong. There was evidence of dampness at the reveals, again probably a damp course problem. Window openings had not been completed, and all were lacking a suitable cill to throw water away from the walls. The mastic pointing to the frames had not been carried out.
The porch showed signs of extensive penetrating and rising damp. The damp-proof membrane did not tie into the damp course, which appeared to be below the floor level. The stepped flashing was cemented to the wall, and it was not possible to determine whether a cavity tray was incorporated. There was a lack of gutters. Hairline cracks had appeared in the render, and trussed rafters required additional bracing to conform to British standard 5268. Background ventilation was required to habitable rooms. Mechanical ventilation was required in the kitchen. The ground floor was not insulated, and storm water drainage had not been installed.
Therefore, through no fault of their own, my constituents are in a ruinous position. They have an uninhabitable house with a substantial mortgage and a repair bill in excess of £30,000, which they do not have and which they have no prospect of obtaining. Initially, they wrote to the Architects Registration Council of the United Kingdom, which said merely that the deceasedMr. Broomfield had been registered by it, under the Architects (Registration) Acts 1931 to 1969, until his death on 8 January 1993. It suggested that Mr. and Mrs. Jones consult a solicitor to find out inter alia whetherMr. Broomfield had professional indemnity insurance, and to consider taking proceedings against the deceased's estate--not a straightforward action. According to my constituents, in any event, the estate was almost insolvent.
I was consulted, and I wrote to the Royal Institute of British Architects about professional indemnity insurance. I was told to contact the widow and ask whether any insurance existed. I then met RIBA's chief executive to register my view that compulsory PII should be introduced urgently. May I draw a comparison with the legal profession? No solicitor is entitled to practise without proof of PII having been paid. As a solicitor, I think that that is both right and proper--I have no hesitation about it. It is costly, but clients are protected and so are lawyers.
With the best will in the world, however, things sometimes go wrong, especially under extreme pressure of work. By the very nature of their work, architects have a higher potential to inflict problems on clients. It is astonishing that a highly regarded body such as the RIBA does not insist on it. I always thought it did. The Architects Registration Council of the United Kingdom does not insist on it and, since taking up this case, I have had numerous letters from architects, some RIBA members and others not. Nearly all support my contention, with the reservation that all people engaged in drawing plans for remuneration should be covered by insurance.
On 24 May, the chief executive of the British Institute of Architectural Technologists wrote to me saying:
The Minister will know that, in 1993, the Warne inquiry's terms of reference included the following: the need to ensure health and safety and the protection of the environment; the need to safeguard the interests of the consumer of architectural services; and the importance of maintaining professional standards. The Housing Grants, Construction and Regeneration Bill, which is currently before the House, is just the vehicle for change to ensure that consumers' interests are protected. Of course, the architectural profession has agreed to lay members serving on its professional body. If we are to strengthen protection for the public, this matter is a core issue that needs to be examined.
While looking at the format and purpose of the Architectural Registration Council for the United Kingdom, I discovered that it has not even touched upon the subject. I find that most disturbing. There is a need to ensure that all people engaged in drawing plans for remuneration should be insured. As I have said, I am not singling out the architectural profession. It has been suggested to me by one correspondent that a BUILD-type insurance protecting both the consumer and the provider should be introduced. I am certainly not averse to that.
Another correspondent, a member of the RIBA, states in his letter:
We now have at least two solutions--which I find attractive--that could deal with the problem and that would enable people to have security, so preventing a recurrence of the awful calamity that befell by my constituents. I call upon the Minister to give an undertaking that he will urgently consider those solutions and incorporate them in the Housing Grants, Construction and Regeneration Bill.
Mr. and Mrs. Gareth Jones are being sued for possession by their building society. They face ruination. I am sure that many other people throughout the United Kingdom are in a similar position. I sincerely believe that the Government owe them a duty as consumers, and I trust that the Government will not shrink from that responsibility.
"In the front page article in Building Design of 26th April we were interested to read your comments on the question of compulsory professional indemnity insurance for Architects. As a professional institute in the construction industry we have already introduced mandatory PII for all members who provide services direct to clients. I enclose a copy of our Code of Conduct.
I have received another letter from the Royal Incorporation of Architects in Scotland. It said:
We spent a long time discussing the introduction of mandatory PII but considered that the risk of losing some members who were not prepared to carry professional indemnity insurance was outweighed by the public's perception of Architectural Technologists and what our professional Institute was trying to achieve. We therefore support your view in pushing for compulsory PII for Architects."
"Since May 1992 the Incorporation has placed obligations on its membership generally to carry PI insurance when they are responsible for businesses; although the wording of the obligation is flexible enough to permit those responsible for public sector businesses to provide appropriate indemnity by some other means.
Although I am aware of the Government's dogmatic objections to regulation, I am also keenly aware of the Government's duty to protect consumers. For most people, such a project is the single largest and most important contract of their entire lives, and they deserve security.
It is important to bear in mind that the provision of appropriate forms of insurance is an important factor in realising this obligation, and RIAS Insurance Services has for the past few years provided a range of PI policies to suit small part-time businesses up to major international practice requirements.
We believe such obligations are a part of a professional approach, and could form a model for others.
However, the provision of PI insurance is not a long-term solution since it runs on a claims-made basis--and the demise of the architectural business, or the death of the architect can therefore leave future clients vulnerable.
The only solution to that sort of problem is to have a project based or building based insurance--a matter which the profession has supported since the publication of the BUILD (Building Users Insurance against Latent Defects)."
"I am writing to you to lend my support, in principle, to your call for all architects to hold PII . . . I believe architects have a moral duty, if not a professional duty to be insured, but I am concerned that you appear to single out architects without addressing the problem of 'plan drawers' of all descriptions.
I agree with that statement and, indeed, fully endorse all the comments of that professional gentleman.
Thousands of Building Regulation and Planning Applications are processed every week, which do not bear the designer's signature, mostly from the Black Economy within the Construction Industry and related professions. They are a time-bomb waiting to go off! These individuals are not insured and they certainly do not declare their earnings to the Inland Revenue, which is why they don't sign their work, and when things go wrong they can't be sued.
The way forward, in the interests of fairness, must surely be to insist that all applications placed before a Local Authority bear the name and qualifications of the designer and that all designers show proof of being insured, or, better still, why not promote the idea of single-project insurance cover which protects clients, contractors and designers alike--A LICENCE TO BUILD. Singling out architects for special treatment does not address the problem."
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