Schedule 7: Special Measures Paragraph 12: Regulator to keep certain matters under review Background
Provisions about reviewing certain matters ensures that the Building Safety Regulator is proactive in undertaking a review of key matters with regard to a building in special measures. It provides some oversight of the progress that the Special Measures Manager is making with their obligations and oversight of financial matters related to that. It places a duty on the regulator to make an application to vary the special measures order following its review, where the regulator deems it appropriate.
Example
A special measures order is in place for a building and the Building Safety Regulator decides they want to review the order twice per year to assess the measures that the Special Measures Manager’s has taken and expenses and payment received. The Regulator also wants to ensure that the recalcitrant Accountable Person is cooperating and making payments as set out under the terms of the order. During their review they ask the Special Measures Manager to provide account reconciliations and evidence to support their relevant expenditure. They also ask the Accountable Person to provide bank statements to show payments made to the Special Measures Manager.
During the review it transpires, through the examination of the documentation provided that the expenses incurred by the Special Measures Manager are lower than those allowed for in the financial management proposal. Following discussions between the Building Safety Regulator and the Special Measures Manager, they agree that the original estimated expenditure exceeds the amount which is now required. Following this, the Accountable Person agrees with a variation to the terms of the order in respect of payments to be made in furtherance of the financial management proposal. The Regulator therefore applies to the First-tier Tribunal to vary the order to reduce the Accountable Person’s payments to the Special Measures Manager, reflecting the new lower expenditure for the measures required under the order