Affordable Housing Supply Programme: process and procedures MHDGN 2022/02

Site security, cost over-runs and adaptations

Grant recipients must ensure that when security services are being provided under contracts being supported by grant funding, any security services contractor or sub-contractor is registered under the Security Industry Authority’s Approved Contractor Scheme for the relevant category of service provision (individual directors holding an individual Security Industry Authority license is insufficient in this regard).  Where more than one contractor or sub-contractor is employed then each company must be separately registered under the Scheme and registration must be maintained for the duration of the contract.  Similarly, should a contractor or sub-contractor cease to be employed any replacement company must also be registered.

In order to comply with the above, appropriate clauses must be incorporated in any contract documentation specifying the requirements applying to the provision of security services.  Prior to awarding any contract therefore, grant recipients will need to check or obtain confirmation from their project consultants that the proposed security services contractor and any sub-contractors are appropriately registered under the Security Industry Authority’s Approved Contractor Scheme.  

Cost over-runs

Projects receiving funding through the Affordable Housing Supply Programme will be considered for additional grant in relation to unforeseeable and unavoidable cost over-runs which may be identified following tender approval

RSLs, RSL subsidiaries, local authorities and local authority arms-length external organisations must write to the grant provider notifying of any unforeseeable and unavoidable cost over-runs immediately they become apparent, together with an initial estimate of cost.  While it is not appropriate for the grant provider to get involved in contract decisions or discussions between grant recipients and their contractors, and while contract types are not stipulated as a condition of grant funding, due diligence (which would include value engineering and taking professional technical/ legal/ procurement advice as appropriate) is expected to have been undertaken by grant recipients before they approach the grant provider with a formal request for additional grant funding.  Any funding approaches should also consider pain-share of any additional costs[1]. 

As noted in Annex E, the grant provider will take the final decision on whether cost over-run requests are acceptable based on the evidence provided.

Adaptations prior to completion 

RSLs, RSL subsidiaries, local authorities and local authority arms-length external organisations may apply for additional funding before completion to enable homes to be adapted to suit the particular requirements of the household to whom they have been allocated[2].  Following approval of the funding request, grant will be available from local Resource Planning Assumptions to cover the total cost of eligible adaptations (which should essentially be of a structural nature).