Building standards fee income and re-investment in service delivery: review

Research looking at the fee income generated by building warrant applications and the level of re-investment of income back into the local authority building standards service following the 2017 fee increase. It also provides initial modelling for a new building standards fees model.


Footnotes

1 This percentage is lower than the increase in costs as income was higher than costs in the base year

2 All fixed fees, amendments, extensions and value of work up to £10,000 is a 45% uplift, work between £10,001 and £250,000 is a 35% uplift, work between £250,001 and £1m is a 25% uplift, work over £1m is a 15% uplift.

3 Aberdeen City, Aberdeenshire, Argyll and Bute, City of Edinburgh, Dundee City, East Dunbartonshire, Fife, Glasgow City, Highland, Moray, North Ayrshire, North Lanarkshire, Orkney Islands, Perth and Kinross, Renfrewshire, Scottish Borders, South Ayrshire, Stirling, West Lothian

4 East Lothian, Edinburgh, Glasgow, Highland, North Lanarkshire, Renfrewshire, South Ayrshire, Western Isles

5 Carlisle City Council, 3C Shared Services, Central Building Control, Building Control Solutions

6 Note that this will include all building standards services and not just verification services.

7 There is no detailed breakdown available for 2016/17 online.

8 This is usually part of general overheads

9 See sub-section 2.6

10 Total direct verification costs include verification staff costs, non-staff costs for verification and other verification related investment. Note that this excludes staff costs associated with non-verification activities (see Section 2.6)

11 Percentage based on number of responses to the question

12 Supporting documents - Building Standards verification performance framework - national customer satisfaction survey: survey findings 2021 - gov.scot (www.gov.scot)

13 Excludes 3 respondents who did not answer the question

14 Of those respondents answering the question

15 Based on data from 11 authorities.

16 The 2010 Regulations revoked and replaced the Building (Local Authority Charges) Regulations 1998

17 Local authority building control accounting guidance for England and Wales, Fully Revised Second Edition 2010, CIPFA

18 “Draft Building Safety Bill – Local Authority Charging Schemes (Building Control) Survey” April 2021. (2021 Survey). The survey received around 90 responses.

19 Surprisingly 10% of respondents had 100% of costs covered and 9% had 50% or fewer covered.

20 Staff costs and other direct costs including marketing.

21 Assumed level of overheads on direct staff costs

22 Only 17% were against this idea and 40% were don’t knows

23 Building control departments see all approvals from AIs and issue the building control notices but of course do not see the value of fees charged by AIs

24 Optimal Economics analysis of BSD workforce data

25 Including 2 existing FTE managers, 1 education/training FTE manger, 1 digital support FTE manager, 3 specialist services posts, each 0.5 FTE.

26 Staff costs for verification, non-staff verification costs and other verification related investment from KPO5

27 This is assumed to apply to non-HRB applications which might seek some pre-application advice.

28 Based on information in BSD “Research Project – Delivery Model Verification Services – Shared/Collaborative Services”

29 The average building warrant fee per application (warrants and amendments) for Scotland is £724. This suggests an average value of work for between £40,000 and £60,000. The discount for a certificate of design in the £50,000 to £60,000 value of work band is £100 and the discount for a certificate of construction in the same value of work band is £35.

30 All fixed fees, amendments, extensions and value of work up to £10,000 is a 45% uplift, work between £10,001 and £250,000 is a 35% uplift, work between £250,001 and £1m is a 25% uplift, work over £1m is a 15% uplift.

31 Optimal Economics analysis of population density (population/sq.km)

Contact

Email: buildingstandards@gov.scot

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