Guidance

Lot 3 — Compliance inspector building lease — Scope

Published 10 July 2026

Applies to England

Summary

Overarching duties

i. This is the Scope for an Independent Compliance Inspector (CI) and central to that role is monitoring the progression of a development and the compliance, performance and progress of the developer tenant (Developer) with an Agreement for Lease (Agreement) and Building Lease (Lease) granted by Homes England to the Developer.

ii. The Compliance Inspector is required to monitor the development and complete reports in accordance with this scope (Scope).

iii. The Compliance Inspector may subcontract to specialist service providers (relating to civil and structural engineering, Geographic Information System (GIS) and digital mapping specialists (to undertake a detailed review of boundaries against the Approved Plans), fire safety and health and safety) where the Compliance Inspector does not possess those specialist skills and qualifications.

The specialist service provider must be identified at the beginning of the instruction and the cost be clearly set out separate to the Compliance Inspector’s fee quote.

Reporting

iv. Homes England requires an Initial Report, progress reports throughout the duration of the development and a final report.

v. The Initial Report will be delivered on a date agreed with the Homes England project manager.

vi. The progress reports are required on a [monthly] basis (unless your instruction provides otherwise) and must be based on and include details of a site visit on the same timeframe. The form of the interim progress report is as per the attached template unless via direct agreement with the appointed CI and Homes England.

vii. It is the duty of the Compliance Inspector to request information from Homes England and the Developer as the Compliance Inspector considers necessary in order to prepare the reports. The Compliance Inspector must notify Homes England if the lack of information is causing difficulties in preparation of the Reports.

viii. Homes England takes no responsibility for the accuracy of the Compliance Inspector’s reports or correspondence.

ix. The reports will be issued to Homes England in digital (web-based), electronic, or PDF scanned copy or as otherwise directed by Homes England.

x. Where Homes England has no prescribed form of report, the Compliance Inspector will send a sample or specimen report to Homes England in electronic form to agree the final format to be used.

1. Overview

1.1 Definitions

Where words and terms in this Scope have capital letters, those words and terms shall have the meanings attributed to them in the Lease (unless otherwise directed).

1.2 Overview

Under the terms of the Agreement and the Lease, the Developer is required to demonstrate to Homes England that the Development and any Developer’s Infrastructure Works are in compliance with the terms of the Lease in every aspect.

The Compliance Inspector will be required to provide a report on the compliance with the Lease at the start of construction (“Initial Report”), throughout the build period (“Progress Reports”) and at the end of construction (“Final Report”) – in accordance with this Scope.

In particular (but not limited to), the Development [and the Developer’s Infrastructure Works] are in compliance with:

• Start on Site

• House Build Commencement

• the House Build Targets

• Construction Related Deadlines; and

• standards relating to design and construction quality and the delivery of the Performance Criteria is of extreme importance

1.3. General

1.3.1 The Compliance Inspector is to undertake a series of site inspections on the Land. The Compliance Inspector will be required to monitor, record and report compliance of the physical construction in accordance with the Approved Plans, the Lease, design covenants and Performance Criteria covering both design and construction quality criteria in accordance with the Lease.

1.3.2 The Compliance Inspector will also be required to represent Homes England by informing the Developer (or the Nominated Officer) of any non-compliance issues with the terms of the Lease.

1.3.3 The Compliance Inspector will need to visit the Land on a monthly basis (or as otherwise agreed with Homes England) to review construction progression and record any changes which may impact on delivery of the construction criteria as demanded by the Lease and in accordance with the Approved Plans, the House Build Targets and Construction Related Deadlines and the Performance Criteria for the completed Development and the Developer’s Infrastructure Works.

1.3.4 The Compliance Inspector will report compliance with the Performance Criteria both during and on completion of the Development.

1.3.5 The Compliance Inspector will issue the Final Completion Certificate in accordance with the terms of the Lease.

1.4 Specific requirements

The Compliance Inspector will be required to sign-off each Dwelling as follows:

Golden Brick Certificate — at dwelling slab level for designated Golden Brick homes.

Completion Certificate — where each building has been built in accordance with the Approved Plans, and includes the Building Control certificate and Warranty Cover Note (National House Building Council (NHBC) or equivalent) (this will also include homes previously signed-off as Golden Brick homes).

2. Health and safety and environment

In addition to reporting on compliance with the Lease the Compliance Inspector will prepare a health and safety section within each report issued to Homes England advising on, and noting to the attention of Homes England, the following:

2.1. Site security

The Compliance Inspector will comment upon the effectiveness of security measures at the Land including fences, hoardings, gates and other measures to limit unauthorised access to the Land and the appropriateness of those measures given the location of the Land within the local community. Proximity to schools, hospitals and other public facilities should be considered, as should efforts to minimise any peril or discomfort to the neighbouring community.

2.2 Health and Safety

The Compliance Inspector will confirm that they have reviewed the information necessary to assess compliance with the Construction (Design and Management) (CDM) regulations and Health and Safety provisions of the Lease. The Compliance Inspector will confirm that in their opinion the developer has taken all necessary steps required to comply with the Health and Safety obligations imposed on them within the Lease.

To provide assurance that the developer in their capacity as CDM client, are discharging their duties and obligations, and has made suitable arrangements for managing their project, enabling those carrying it out to manage health and safety risks in a proportionate way.

Confirm the arrangement in place for reporting and investigating accidents and incidents and that where applicable, notifiable accidents and incidents reportable under Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) are notified to the Health and Safety Executive, and that such accidents and incidents are reported to Homes England, in accordance with the relevant clause in the Lease.

2.3 Mandatory Requirement — Environmental Monitoring and Assurance

To provide assurance that the developer has made suitable arrangements for managing their project in line with applicable environmental legislation, other appropriate compliance obligations and Building Lease obligations, ensuring those carrying out the project manage the environmental risks appropriately. Observations and issues are to be included in the monthly report as detailed in Section 4.

3. Initial Report

3.1. Pre-Start Meeting

Compliance Inspector will:

a) Hold an initial meeting with Homes England.

b) Agree with Homes England any arrangements required for the completion of this Scope for the Compliance Inspector to access the Land for monitoring / inspection purposes.

c) Hold an initial meeting with the Developer, to include agreeing reporting obligations and setting out requests for information.

3.2 Start on Site Monitoring Report

No more than 1 calendar month following the Start on Site inspection, the Compliance Inspector will prepare and circulate a first report covering the Start on Site (“Initial Report”) that will confirm:

a) The Developer has made all applications to the Local Planning Authority to discharge all planning conditions that are required to be discharged prior to the Start on Site.

b) The date on which Start on Site was achieved (and from which the Construction Related Deadlines will be measured).

c) That the Developer has satisfied all conditions (imposed on them under the Agreement for Lease / Lease) necessary to permit Start on Site; and

d) Details of any agreement required with the Developer for the Compliance Inspector to access the site or sites required for the completion of this Scope for the Compliance Inspector to access the Land for monitoring / inspection purposes.

4. Progress Reports

4.1 Monthly Monitoring Reports

After each site inspection the Compliance Inspector will prepare and circulate a Monitoring Report (as per the agreed reporting period, and at a date each month as agreed with Homes England) of this Scope throughout the full duration of the Development. In the Monitoring Report the Compliance Inspector shall:

a) Provide staged development progress of each dwelling.

b) Confirm and record the Actual House Build Commencement Date.

c) Confirm and record achievement of the Construction Related Deadlines as they occur and monitor the Developer’s performance against these deadlines and confirm that they are within the tolerances permitted in the Construction Related Deadlines in the Lease.

d) Confirm and record the Developer’s performance in adhering to the Approved Plans: The Compliance Inspector will be required to review the construction processes (and also the design development/construction drawings) against the Approved Plans to highlight any non-compliance with the Approved Plans and Performance Criteria.

e) Request and report information from the Developer in relation to the site landscaping plans, record progress, planned activity and general compliance with the plans (this relates to matters such as tree planting, general planting, grassed areas, play-area provisions and so on and is not a requirement for a civil engineering type consideration).

f) Confirm and report on the Developer’s compliance with the Section 106 obligations.

g) Confirm and report the Developer’s build-out and sales performance — specifically recording the number of:

i. Dwellings and Non-Residential Units (if any) under construction.

ii. Dwellings and Non-Residential Units (if any) being actively marketed.

iii. Dwellings and Non-Residential Units (if any) completed (having secured NHBC Buildmark Confirmation and Council of Mortgage Lenders (CML) Certificate (or similar) sign off / a Compliance Certificate (for all tenures or as otherwise agreed with Homes England) and sold.

iv. Dwellings and Non-Residential Units (if any) completed (having secured NHBC Buildmark Confirmation and CML Certificate (or similar) sign off / a Compliance Certificate) and remaining unsold at that point; and

v. Dwellings which qualify as standing stock.

These figures are to be expressed both as in month figures and cumulative figures over the whole of the Development.

h) Confirm and report the Developer’s progress in terms of making applications to / completing agreements with statutory bodies (that is, agreements under section 38 Highways Act 1980 / agreements under section 103 of Water Industry Act 1991).

i) Confirm and report the Developer’s adherence to their covenants under the Lease.

j) Record any formal requests made by the Developer for variations to the Approved Plans and making recommendations to Homes England as to whether these are justified requests and whether the changes are appropriate.

k) Record any formal requests by the Developer for extensions of time under the terms of the Lease, reviewing and confirming the validity of the Developer’s request and the appropriateness of the length of time extension requested.

l) Identify any unauthorised deviations from the Approved Plans, Planning Permission and Performance Criteria and / or breaches to the Lease that may have occurred.

m) In the event of breaches being identified:

i. whether the breach is capable of remedy.

ii. whether any proposed Remediation Plan is satisfactory / the optimal solution for rectifying the breach.

n) Confirm and report the Developer’s performance in complying with any approved Remediation Plan.

o) Report any Reduction Event that Homes England has reported to the Compliance Inspector.

p) any Overage Reductions that are to be imposed.

q) Confirm and report the Actual House Build Completion Date.

r) Report on the environmental performance of the Developer. Including but not limited to:

i. Presence and adequacy of the Construction Phase Environmental Management Plan (CEMP).

ii. Identification and control of key environmental risks (for example, waste, ecology, pollution, noise).

iii. Monitoring and mitigation measures in place on site.

iv. Availability and competence of environmental specialists (for example, ecologists, archaeologists)

v. Significant environmental issues affecting funding, programme, or reputation.

vi. Procedures for reporting and investigating incidents and complaints, including reporting environmental incidents to Homes England. Environmental issues noted during inspections such as statutory nuisance complaints, significant waste management issues or adverse activities by the Developer outside of the lease boundary on Homes England retained land where relevant consents and permission or easements are not in place.

4.2 Compliance Certificates

a) The Compliance Inspector shall inspect and confirm the build status of each unit, providing certification of Golden Brick completions (for designated Golden Brick units) and Full completions where the unit is practically complete (including Building Control sign-off and NHBC (or equivalent) cover-note).

b) The Compliance Inspector shall satisfy themselves that:

i. the Unit has been erected in accordance with the Approved Plans; and

ii. that practical completion has been achieved as evidenced by the issue of a certificate of practical completion; and

iii. that the Highways sewers drains and other services ancillary to and reasonably necessary for the proper enjoyment of the Unit have been completed commissioned and are ready for use by the occupiers thereof; and

iv. In relation to the Unit there is no extant breach by the Developer of the terms of this Lease and / or the Agreement for Lease; and

v. That the Unit reaches the Performance Criteria.

and within 5 Working Days of the inspection the Compliance Inspector shall either issue the Compliance Certificate (Golden Brick or Full) in respect of the Unit or otherwise inform the Developer what actions are required by the Developer to secure the issue of the Compliance Certificate.

c) The Compliance Inspector shall provide a copy of the Compliance Certificate to both the Developer and to Homes England.

5. Final Report

5.1. Final Completion Certificate

To issue the Final Completion Certificate in accordance with the terms of the Lease.

The Compliance Inspector will prepare a Final Completion Certificate and issue it to Homes England when it is satisfied of all of the following:

a) An NHBC Warranty confirmation (including for different tenures, for example, Buildmark Choice for affordable homes) and CML Certificate has been obtained for every dwelling and a copy has been provided to Homes England.

b) A Compliance Certificate has been issued for every Unit and a copy has been provided to Homes England.

c) The whole of the Development has been substantially completed to the reasonable satisfaction of the Compliance Inspector in accordance with the Approved Plans and the Performance Criteria (having due regard to planting seasons and other matters beyond the Developer’s reasonable control).

d) All Adoptable Highways and Adoptable Common Services have been adopted or the Developer has entered into all necessary Agreements to procure adoption. Where this has not been achieved the Compliance Inspector will note the status and conditions to Homes England for Homes England’s consideration before issuing the certificate.

e) Any Common Areas have been transferred in accordance with the provisions of the Lease.

f) Site landscaping has been completed in accordance with the landscaping plans included in the Lease.

g) The Developer has completed a transfer to it of the Remainder Land as required by the Lease or it has been agreed that Homes England does not require the Developer to take a transfer of the Remainder Land or any part or parts of it prior to the issue of the Final Completion Certificate.

h) Compliance by the Developer with the other terms of the Lease.