PCC Certificates vs Structural Warranties
The construction industry often involves different levels of insurances, certificates and protections for all parties involved especially those undertaking self builds. Two important documents that arise in this space are Professional Consultants Certificate (PCC) and Structural Warranties. While both aim to provide assurance, they serve different purposes and cater to different needs before and after the construction process. In this blog, we’ll explain the key differences of PCC certificates vs structural warranties, including what they cover and when they should be obtained. We’ll also discuss who typically requires these certificates, the costs involved, and other essential FAQs, such as whether it’s possible to secure a mortgage without them. By the end, you’ll have a clear understanding of these documents and how they might apply to your project.
What is a Professional Consultant Certificate (PCC)?
A Professional Consultants Certificate (PCC) is an essential verification tool in the construction industry. It is issued by a qualified professional, such as a surveyor or architect, who inspects the construction work to confirm it meets the required standards and regulations.
This certificate covers various aspects, including building safety, compliance with local regulations, and adherence to design specifications. Obtaining a PCC is essential not only for regulatory purposes but also for ensuring that buyers and financial institutions feel confident in the quality and safety of the property.
Typically, a PCC certificate can cover a 6 year period or a 10 year period, although you may not have a choice here as what coverage you need depends on your requirements for selling the property or possibly what’s required by a lender to finance the building.
What is a Structural Warranty?
A structural warranty is an insurance policy that protects against structural defects in a building after construction is completed, usually for 10 years. This warranty will cover key structural elements like foundations, walls, roofs, floors, and load-bearing components, ensuring the stability and integrity of the property. Coverage is often divided into two phases: the first two years cover defects from poor workmanship or materials, while years 3–10 focus on structural issues.
A structural warranty is essential for self-builders, developers, and homebuyers, as it provides reassurance about the quality and durability of a property. Many mortgage lenders require a structural warranty for financing new builds or conversions. It also offers buyers confidence in their investment by safeguarding against unexpected repair costs for major defects.
Costs for a 10-year structural warranty vary based on project size, type, and provider. We go over the actual costs in more details below but unfortunately you won’t be looking at just a few hundred pounds here. Ultimately, it acts as a vital safety net, ensuring peace of mind for all parties involved in the property’s construction or purchase.
Who needs Professional Consultants Certificates and Structural Warranties?
Professional consultants certificates and structural warranties are not merely optional enhancements but often necessities in the construction industry. Homeowners looking to build or purchase new properties should be aware of these documents and understand their value. Having PCC certificates assures buyers that the construction was done according to established guidelines, while a structural warranty protects them from future risks.
Builders, developers and contractors also require these certifications as they illustrate compliance with local regulations and industry standards. Banks may also require them as they can be essential for securing financing or insurance, lenders often want to see such protections in place before approving a mortgage.
The role of Structural Warranties in construction projects
Structural warranties play a crucial role throughout various stages of construction projects. Initially, they can influence the design phase by encouraging builders to adhere to high construction standards.
During ongoing construction, the presence of a warranty can help ensure that all work is done correctly, as builders will want to avoid potential claims related to structural failures. Finally, when the project wraps up, having a structural warranty in place not only reassures homeowners but also can be a key selling feature should the owner choose to sell the property at some point in the future.
Which is better PCC or Structural Warranty?
The debate over whether a Professional Consultants Certificate or a structural warranty is better is subjective and largely dependent on the specific needs and circumstances of the project. A PCC provides assurance regarding the adherence to construction standards during the build, while a structural warranty offers protection against future structural failures.
For homeowners, ideally having both offers the most comprehensive protection and peace of mind. If forced to choose, those concerned about potential future issues may favour a structural warranty, while those focused on the immediate assurance of construction quality may lean towards acquiring a PCC, remember a lender may require either or both documents for financing.
How much do Professional Consultants Certificates (PCC) and Structural Warranties cost?
Ok we won’t sugar coat this, they can cost thousands of pounds, as a example a 6 year PCC certificate can cost around £900, 10 year PCC certificates can cost around £1800 and a 10 year structural warranty can be anywhere between £2000 and £4000! Please bear in mind the costs associated with Professional Consultants Certificates and structural warranties can vary considerably depending on several factors, including the size of the project, location, and the professionals or companies involved.
In general a PCC may cost anywhere from a few hundred to thousands of pounds, as mentioned structural warranties can range broadly as well, however, these warranties are often structured as a percentage of the total construction costs. Homeowners can expect to pay anywhere from 0.5% to 1% of the total construction cost for a warranty. It’s crucial for both homeowners and builders to shop around and compare quotes to ensure they receive the best coverage at a reasonable price.
Can you get a Structural Warranty or PCC certificate retrospectively?
The good news is yes! In most cases you can retrospectively acquire both PCC certificates and structural warranties after building completion, the bad news is you can expect to pay double the prices quoted above, for a large complex build expect quotes upwards of £5000 for structural warranties! Retrospective acquisition of a professional consultants certificate or structural warranty is typically more complicated than obtaining them prior to or during construction. For a PCC, a qualified professional may need to review the completed structure to ensure it meets current standards, which may have changed since the original construction.
In terms of a structural warranty, some providers allow homeowners to purchase coverage even after completion, but this often comes with higher premiums and additional prerequisites. The insurance company will conduct a thorough inspection of the property to assess any existing issues before granting warranty coverage.
Can you get a mortgage without a Structural Warranty or Professional Consultants Certificate?
In short yes you can get a mortgage without either however, obtaining a mortgage without a Professional Consultants Certificate or structural warranty can and probably will be challenging. Most lenders prefer or even require these documents to ensure they are making a sound investment.
Without PCC certificates, lenders may be wary of potential issues arising from the construction process.
Similarly, the absence of a structural warranty may discourage lenders since it signifies a lack of protection against future structural failures. However, it is not impossible. Some lenders might still offer financing under specific circumstances, but the terms and interest rates may be less favourable. In many cases, potential homeowners may find it significantly advantageous to obtain these documents before seeking a mortgage as it is likely to slow the mortgage application process and limit financing options. To summarise having these protections can significantly simplify the mortgage process, provide better terms, and offer peace of mind for both buyers and homebuilders.
For more information and to start a quote for Professional consultants certificates and structural warranties head to Architects Warranties or Build Warranty websites to get started.
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