To ask the Minister for Communities how rising building costs will impact on construction projects related to her Department.

With regard to the Social Housing Development Programme, the Total Cost Indicators (TCI) system is used to determine the cost to deliver social housing. A range of information is used to establish a benchmark of total average costs for acquiring/constructing social homes across the 11 Council areas. From 1st October 2021, my Department has implemented revised TCI rates which take account of the increased costs affecting contractors on any newly tendered schemes.

For schemes already on site or tendered, Housing Associations can claim for any increased costs for the lifetime of Construction and Procurement Delivery’s (CPD) Procurement Advisory Note, i.e. between 1st April 2021 and 30th September 2021. The Housing Executive will implement a rigorous process in line with CPD Guidance to ensure that claims are evidence-based and enable payment/remuneration. The Housing Executive is fully confident that it can administer these claims and payments.

Rising building costs may result in increased cost to construction projects across all Departments. The impact of construction cost inflation is incorporated into the Engaged Communities Group capital monitoring process which manages pressures and easements across the group in line with other Department for Communities priorities. My Department will continue to monitor and take into account when planning projects.