39 Payment of grant to contractor.E+W
(1)The local housing authority may pay a grant or part of a grant—
(a)by payment direct to the contractor, or
(b)by delivering to the applicant an instrument of payment in a form made payable to the contractor.
They shall not do so unless the applicant was informed before the grant application was approved that this would or might be the method of payment.
(2)Where an amount of grant is payable, but the works in question have not been executed to the satisfaction of the applicant, the local housing authority may at the applicant’s request and if they consider it appropriate to do so withhold payment from the contractor.
If they do so, they may make the payment to the applicant instead.