Appendix 19

Building Grants
Procedure concerning Application for and Payment of Non-recurrent Grants for Building

1. An application for non-recurrent grant towards the cost of any new building, extension or reprovisioning of existing premises may be made at any time, but work on the project must not be started until the sponsor has been notified that the grant has been approved.

2. The application should give full justification for the project, an indication of the estimated cost, and the amount the sponsor is prepared to contribute. In addition the sponsor must state whether a grant of site is required from the Government, or whether it is intended to build on land already available.

3. If the application is supported by the Education Department, the applicant will be required to confirm that he is prepared to agree to certain conditions governing the utilization of any grant which may be made, and the operation of the proposed school.

4. On receipt of notification from the Director that the request for non-recurrent grant has been approved in principle, the following should be submitted to the Director for approval (Appendix 28 may also be read for reference in the case of a small-scale project) :
  (a) Sketch plans (site formation and/or building)
    (i) Sketch plans should not be prepared before grant of site has been approved and full details of the site are known, e.g. site boundaries and engineering conditions. The sponsor, however, may at his own risk submit sketch plans after the site has been granted or approved, but before the land lease has been signed. Sketch plans must be submitted in quadruplicate, one copy of which should be forwarded direct to the Director of Architectural Services at the same time when they are sent to the Education Department.
    (ii) "Non-school" portions if required by the sponsor may be permitted to be included in the project subject to the approval of the Director, even where the sponsor is bearing the whole cost of construction and even if land premium is being paid. Where "non-school" portions are required, full detail must be submitted as if they were subsidized portions and where included in construction of an aided school project, apportionment of the costs will be as recommended by the Director of Architectural Services.
    (iii) All references throughout should be metricated.
  (c) Title Deeds
    Where the project is to be carried out on private land, a statement regarding the land title, signed by the trustees or other legal representatives of sponsor, should be forwarded with the sketch plans. This statement should show the location, area, lot number (or reference) of the land to be used.
  (c) Appointment of Architect and Quantity Surveyor
    (i) A private quantity surveyor must be employed on all projects estimated to cost more than $500,000.
    (ii) Fees paid to consultants must be at the professional scales paid by the Government to its own consultant and for which receipts will be required as for all other expenses and outgoings before subsidy can be released.
    (iii) The names of consultant architects and other firms that the sponsor proposes to employ must be submitted to the Director for the approval of the Director of Architectural Services.
  (d) Drawings, Specifications, Tender Documents, List of Tenderers, etc.
    After the sketch plans have been approved, working drawings, specifications, bills of quantities, tender documents and list of tenderers for building and for electrical installation and other sub-contracts should be submitted for approval.
    The standard of workmanship and materials must be in accordance with the latest edition of the General Specification for Buildings published by the Architectural Services Department.
  (e) Tenders
    (i) After approval of tender documents including drawings, specifications, bills of quantities and list of tenderers (including those for specialist works), the school architect should invite tenders and forward a copy of the letter of invitation to the Director of Education, the Director of Architectural Services and to the relevant tender board.
    (ii) Tenderers should be instructed to deposit their tenders on a given date, normally on a Friday before 12 noon in the tender box of either the Public Works Tender Board at Queensway Government Offices, 66 Queensway, Hong Kong or the relevant District Office Tender Board for works estimated to cost not more than $50,000 in the New Territories (a specimen letter to the District Office for the use of the District Office Tender Box is given at Appendix 32). Schools and their authorized persons are advised to check with the Director of Architectural Services on the date to be set for receipt of tenders.
    (iii) After receipt, opening and listing by the relevant tender board, tenders will be collected by the Subvented Projects Division of the Architectural Services Department from the Tender Board and handed to the consultant authorized architect for the project. Within 7 days, the authorized architect will provide a recommendation, report and comparative analysis and apportionment of costs for the 'non-school' and 'above standard' provisions with the assistance of the other consultants for the project to the school sponsor, copied at the same time to Director of Architectural Services and Director of Education. All tenders must be returned at the same time to the Director of Architectural Services who will then forward his recommendations on tenders to the Director of Education, copied to the Tender Board.
    (iv) The Director of Education will advise the school sponsor as to which tender they may accept for subsidy purposes, subject to funds being available.

Signing of Contracts
5. Any financial commitment accepted without the prior approval of the Director of Education shall be the sole responsibility of the sponsor. Contracts should not be signed until approval of tender has been received and authority to sign the contract has been given by the Director. A copy of the contract must be submitted to the Director of Education after it has been signed.

Inspection of Works
6. During the course of the works, the Director of Architectural Services or his representative may carry out inspection of works on site to ascertain that government standards of construction are being maintained.

Deed of Covenant
7. Where the new building or extension is to be erected on private land, the trustees or legal representatives of the sponsor must execute under seal and register by memorial in the Lands Department a Deed of covenant which shall contain such provision as the Director of Education may require, and shall in particular provide the following :
  (a) That the premises will be used solely for approved educational purposes or other purposes approved by the Director.
  (b) That the school will be managed in accordance with the Education Ordinance and its subsidiary legislation and the Code of Aid for Special Schools.
  (c) That if the sponsor should at any time desire to be released from the foregoing obligations, or if for any reason the school ceases to be accepted by the Director as an aided school, the sponsor may be required to repay the whole amount of grant to the Government or an equitable proportion of such grant as assessed by the Government.
  (d) That in the event of any breach or non-performance of any of the terms, covenants and conditions contained in the Deed of Covenant, it shall be lawful for the Government to re-enter upon the lot and the school without the payment of any compensation whatsoever.

Payment of Building Grant
8. Interim payment of building grant may be requested after the agreed contribution of the school towards the building cost has been fully expended. Requests for payment by the sponsor must be supported by properly receipted bills and where an architect is employed, by the architect's certificate to the effect that the work for which payment is claimed, has been satisfactorily completed.

9. On practical completion of projects, the Director of Architectural Services or his representative must be notified to carry out an inspection, accompanied by a representative of the Director of Education, of the premises before formal acceptance can be given that the premises have been satisfactorily completed. Release of subsidy to meet one moiety of the retention money may then be made. At the expiration of the maintenance period, subject to another satisfactory inspection by the Director of Architectural Services or his representative, subsidy for the balance of the retention money may now be made.

10. Within six months of completion of the project the school must forward a detailed final account to the Director of Architectural Services showing the completion cost, including cost of all variations. The cost of any variations not approved by the Director of Education will not be subsidized.