Housing Association Guide Part 4 - Procurement requirements (for Housing Associations).
1.01Background – this part of the Guide deals with with the Procurement Requirements to be followed by Registered Housing Associations in order to access mixed funding for the provision of social housing from the Northern Ireland Housing Executive (DPG). Part 4 needs to be read in conjunction with other Parts of the Guide.
1.02Procurement Requirements for Housing Associations – includes requirements, recommendations and advice on the various aspects of development and procurement methods open to Associations in the provision of social housing. Supporting this Part of the Guide are 4 Appendices:
- Appendix 1 - deals with the requirements for the acquisition and valuation of land and property.
- Appendix 2 - deals with procurement requirements and guidance.
- Appendix 3 - deals with Statutory Approvals required for certain types of development, e.g., new build.
- Appendix 4 - deals with Statutory Agreements required in certain development situations.
1.03Acquisition of Land and Property – (See Appendix: 1 to Part 4) – is similar to previous requirements, but contains more background information and guidance for Associations on general valuation matters. The following major changes to this Appendix should be noted:
- Information Required for a Land/Property Valuation – (Para 2.07) - in order to obtain a valuation, it is necessary for the Association to properly brief the Valuer especially on any restriction by the Vendor/others on the density likely to be achieved. The minimum requirements are specified for this purpose including a list of existing conditions, constraints and general development proposals that, if applicable, could affect the valuation. A suggested pro-forma for use by Associations when requesting a land/property valuation is now included at Annex B.
- Valuers Reports – (Para 2.08) - must be in the form and detail specified in Appendix 5.1 of the RICS ‘Red Book.’ This requires the valuer to include certain information in the valuation report.
- Audit Requirements for Valuations – (Para 2.09) – Associations are reminded of the supporting information on the valuation report to be retained on file by the Association for Audit purposes.
- Use of Valuers – (Para 2.05) – this include a reference to the use of Claremont Valuation Services (formly BIH Valuation Services) by Associations.
1.04Procurement Requirements and Guidance - (See Appendix: 2 to Part 4) – this Appendix lists the DSD’s procurement requirements for all social housing schemes that receive Housing Association Grant (HAG) or utilise the Associations Disposals Proceeds Fund (DPF). The requirements are in ‘checklist’ form, supported by detailed guidance where necessary or by reference to other sources of guidance and advice. Although generally similar to previous requirements, a number of changes and modifications have been made. Also a number of new requirements have been introduced as a result of Government policies and to reflect legal developments. The following changes to this Appendix should be noted:
- The Association’s Disposals Proceeds Fund – any procurement activity in respect of this fund, must also comply with the requirements and guidance of this Appendix.
- Procurement Policy – general advice is included on Management Committees’ responsibility and on the Delivery of Best Value for Money in procurement. It should be noted that Housing Associations, as a condition of grant, are now required to comply generally with Government Procurement policy.
- Procurement Selection – additional advice is included for Associations on this issue. The use of negotiated tendering is now restricted to Package Deals. In other situations, negotiation must be on the basis that a suitable/similar contract already exists or existed between the Association and the contractor (see also EU Procurement Rules below).
- EU Procurement Rules – what was previously a ‘grey area’ changed on 10 September 2004, with the announcement that HM Government had accepted that Registered Social Landlords (including Housing Associations) fall within the definition of Bodies Governed by Public law (BGPLs) as defined in EU procurement Directives and must therefore comply with the directives when undertaking procurement. All contracts awarded by an Association – and this applies to supplies, services and works contracts where the specific threshold is exceeded - must comply with the relevant Directives. It should be noted that the Public Contracts Regulations 2006 introduced a number of changes in respect of EU Procurement Rules, including a mandatory 10-day ‘standstill’ before entering into any contract or to conclude a framework agreement. Details on this issue and other changes are included in Appendix: 2 to Part 4, Annex C.
- Achieving Excellence – Housing Associations, as a condition of grant, are now required to comply generally with Government Procurement policy. Annex D to Appendix: 2 to Part 4 has been retitled and includes brief details of new requirements to be introduced over the next few years.
- Appointment of Consultants – minor changes have been made to remind Associations that the Association’s main or lead consultant must be appointed in writing prior to the association making an application for project approval. From October 2007 (subject to confirmation), a new condition of appointment applies to all ‘works’consultants in respect to Health and Safety (see annex E). Where the fee is unlikely to exceed £5k, the Association can now short-list consultants directly from the Constructionline database.
- Contractor Selection – for competitive tendering situations with works costs over £30k, generally Associations must select contractors from an approved ‘framework’ or produce a select list of contractors by advertising (see Annex F). It should also be noted that as a condition of tendering, all such contractors must have third party accreditation of their health and safety management systems (Buildsafe-NI initiative) (see Annex F for details). Where the works cost is unlikely to exceed £30k, the Association can now short-list contractors to tender directly from the Constructionline database.
- Building Contracts – all ‘works’ contracts must now be let on a formal contractual basis and an appropriate form of contract used (see Annex G). Previously this requirement only applied to ‘works’ costs over £10k.
1.05 Statutory Approvals - (See Appendix: 3 to Part 4) – this is similar to previous requirements and reminds Association of the need to obtain the necessary Statutory Approvals. The approvals relate mainly to Planning Permission and Building Regulation Approval.
1.06Statutory Agreements - (See Appendix: 4 to Part 4) - this is similar to previous requirements and reminds Association of the various procedures and agreements that may be required by Statutory Authorities or Bodies, in undertaking certain types of development. Some agreements reduce or eliminate the need for the Association to provide a ‘bond’ in specific developments. Associations are also reminded of the need to obtain the DSD’s approval for any necessary Consent under Article 13 of the Housing (Northern Ireland) Order 1992, where this involves a ‘disposal of land’ to a Statutory Authority or Body for a sub-station or other similar facility.
2.01Part 4 of the Housing Association Guide – Associations should implement the contents of this Part of the Guide as soon as possible. Where an implementation date for a particular item has yet to be set, this will require discussion with NIFHA. Similarly, where a ‘future’ implementation date is quoted for a requirement, this is simply to alert Associations to possible changes. The actual implementation date will be subject to discussion with NIFHA and arrangements made, if required, for training and additional advice to be provided.
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