Practical Completion for Non-Tariff Schemes - Band 1

Associations must determine the estimated final costs, if these differ from the estimate they may have to apply to NIHE for additional costs.

Practical Completion

Practical Completion is deemed to have occurred when the works/repair contract has reached Practical Completion or in the case of MTC, when the relevant work order is completed.  At the outset associations must have fully identified the works cost requirement and therefore the scheme approval is based on ‘firm’ determined costs not estimated costs. There is no cost overrun facility to adjust works costs upwards for ESPs. However if, due to unforeseeable events, the actual costs are in excess of the ESP ceiling then a re-approval of the scheme will be necessary. More information on Scheme Types.

Associations should seek advice from NIHE (DPG) in this instance. Where actual works costs are less than the approved costs the grant payable to the Association will be recalculated on the GP2 form and the revised amount of grant outstanding will be paid by NIHE (DPG).

Given the nature of the purchase, associations may opt to claim the acquisition and completion as one tranche claim. This is permissible provided the required scheme pre-qualifications have been reached, the acquisition date is in the past and all the required documentation is available and all relevant certifications can be met. 

Associations must follow the instructions for claiming payment set out in Table 9 ESP Practical Completion Stage Non-Tariff Schemes Band1.

For more information on Grant Timetable.

Recoverable costs post practical completion

  • Where, following a final grant claim, the Association is able to recover costs as the result of a claim by or against a third party, that proportion of the costs represented by the grant rate for the scheme must be forwarded to NIHE (DPG).
  • If the actual purchase price is lower than the valuation figure, where the scheme approval was based on the latter amount, an overpayment of HAG may have occurred and will be recoverable from the Association.
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