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<p>Applicants can only submit a full costs application to the Building Safety Fund
once they have gone out to tender and have a preferred contractor to carry out the
remediation works. At that point they must provide the required cost breakdown and
their application will be assessed by the Department. If costs are assessed as acceptable
an award of funding and grant funding agreement is issued. Applicants will also enter
into a works contract with the main contractor, based on the costs agreed at tender
from the contractor. We expect the works to start on site as soon as practically possible
once contracts are signed.</p><p>Applicants to the Building Safety Fund are then required
to manage the total eligible costs of remediation project within the grant awarded.
We appreciate that circumstances can change and costs may increase because of unforeseen
overruns or variations to contract scope. Where this happens applicants can submit
an application for variations which will be considered by the Department. However,
where construction contracts vary in the placement of liability in relation to variations
and cost variation applications to the Building Safety Fund will only be permitted
if the liability for the variation is the applicant's and not the contractor's. Guidance
on variations under the Building Safety Fund can be found in the Building Safety Fund
Application Guidance on gov.uk [at <a href="https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fguidance%2Fremediation-of-non-acm-buildings&data=05%7C01%7CParliamentary%40levellingup.gov.uk%7C00f86e1c3bc245abe10f08daa092d85a%7Cbf3468109c7d43dea87224a2ef3995a8%7C0%7C0%7C637998849792734815%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=2jilBJuHMAbRQ4uGFF6jDUCKcc63VNunnmUnK9Bhy%2Fc%3D&reserved=0"
target="_blank">www.gov.uk/guidance/remediation-of-non-acm-buildings</a> and <a href="https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fpublications%2Fbuilding-safety-fund-guidance-for-new-applications-2022&data=05%7C01%7CParliamentary%40levellingup.gov.uk%7C00f86e1c3bc245abe10f08daa092d85a%7Cbf3468109c7d43dea87224a2ef3995a8%7C0%7C0%7C637998849792734815%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=8aLeD5c41taxv7tX3NvFfdeUs828CvU4hl7KZ04317w%3D&reserved=0"
target="_blank">www.gov.uk/government/publications/building-safety-fund-guidance-for-new-applications-2022</a>
].</p><p>The Department appoints cost consultants for the Building Safety Fund. They
undertake additional monitoring of tenders and variation requests including to identify
where costs are rising as a result of inflation. The Department is actively seeking
to better monitor the overall impact of inflation, including on the Building Safety
Fund.</p>
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