My Department issues Basic Unit Costs (BUCs) for each individual local authority annually as benchmarks for developing and costing scheme designs at approval stage. The BUCs are not absolute ceilings or limits. Rather they are a guide for local authorities and Approved Housing Bodies on costing housing schemes early in the pre-construction phase of scheme delivery, and they can be exceeded where justified.
The BUCs are updated annually, informed by an analysis of returned data, construction trends, and inflation. The current BUCs issued in May last year. Updated guideline costs for each local authority are expected to issue in Q2.
Critically, all social housing construction proposals are assessed by my Department on a case-by-case basis. These assessments examine value for money, compliance with design guidelines, the Capital Works Management Framework, Infrastructure Guidelines, procurement procedures and most economically advantageous tender evaluations, as well as overall suitability, before any budget issues to a local authority or Approved Housing Body. In this context, agreed project budgets may ultimately exceed the BUCs.
Regularly updated BUCs, and a robust assessment of all proposals in line with government public spending requirements and having regard to the specifics of each individual project proposal, ensure project budgets accurately reflect the prevailing cost of delivering social homes across all local authorities, which costs are notably 100% funded by my department. Accordingly, I am satisfied the cost guidelines do not inhibit the delivery of housing in Fingal or any other local authority area.
