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+---
+status: accepted (extends ADR-0016)
+---
+
+# Fabric First is a two-phase optimisation with strict envelope priority
+
+Landlords with a fabric-first retrofit policy require the building envelope —
+insulation and windows — to be treated before heating systems and renewables
+are considered. The legacy engine carried this as `enforce_fabric_first` on
+the plan-API request body (`funding_optimiser.optimise_with_scenarios`): an
+optimiser pass over fabric-only measures with the full budget, then a second
+pass over the remainder with the leftover budget and the residual target,
+summing approximate per-measure SAP points. The new engine needed the same
+capability on the truthful-re-score Optimiser core (ADR-0016).
+
+Decided in a grilling session with Khalim, 2026-07-09.
+
+## Decision
+
+**`fabric_first` is a Scenario attribute, and the Optimiser honours it as two
+sequential `optimise_package` phases in which the envelope has strict first
+claim on the budget** (`optimise_package_fabric_first`, ADR-0016 core reused
+per phase).
+
+- **The flag lives on the `scenario` table** (FE-owned Drizzle schema:
+  `fabric_first boolean NOT NULL DEFAULT false`), mirrored in `ScenarioModel`
+  and the domain `Scenario`. A Plan's provenance stays derivable from its
+  Scenario row alone — unlike the legacy request-body flag, the same
+  scenario_id cannot produce differently-constrained plans. **Deploy order**:
+  the Drizzle migration must land before this mirror, or every scenario read
+  crashes on the missing column.
+- **Fabric = the building envelope** (`FABRIC_MEASURE_TYPES`): wall (CWI /
+  EWI / IWI), roof (loft / sloping-ceiling / flat-roof), floor (suspended /
+  solid) insulation, plus double / secondary glazing — the legacy list
+  exactly. Lighting, tune-ups, secondary-heating removal, heating and solar
+  all wait for phase 2. Mechanical ventilation is unclassified: it is never
+  selected, only injected as a forced Measure Dependency (ADR-0016) of the
+  fabric that triggers it, in whichever phase that happens — and only once.
+- **Phase 1** runs `optimise_package` over the fabric groups with the full
+  budget: least-cost-to-target, repair, max-gain fallback. If the truthful
+  post-fabric score meets the Scenario target, the package is fabric-only —
+  surplus budget is left unspent, per the ADR-0016 no-overshoot doctrine.
+- **Phase 2** (target unmet, or no target) optimises every group phase 1 did
+  not consume — non-fabric, plus fabric groups it left unpicked, which may
+  re-enter on their post-fabric worth — under the leftover budget. Candidates
+  are valued **against the fabric-applied dwelling**: warm-start signals are
+  re-scored and every package re-score is prefixed with the phase-1 overlays
+  (`_PrefixedScorer`), so a heating system whose worth changes once the
+  envelope is treated is re-ranked truthfully, and the returned Score remains
+  the whole-package figure against the true baseline (bills and the role-3
+  cascade stay honest).
+- **Strict priority, not target-aware compromise**: phase 1 commits the
+  max-gain fabric package even when a cheaper fabric/heating split would have
+  reached the target — a £4,000 budget buys floor insulation and leaves the
+  £3,200 boiler unaffordable, and the target is missed rather than the fabric
+  skipped. This is the landlord's explicit trade.
+- **Every goal honours the flag**, not just Increasing EPC: with no SAP
+  target the two phases are both max-gain, so fabric still gets first claim
+  on the budget.
+- **No Plan-contract change**: the Scenario row is the provenance; the
+  best-practice cascade already orders fabric before heating in the persisted
+  measures.
+
+## Consequences
+
+- The Modelling orchestrator branches once, on `scenario.fabric_first`,
+  between `optimise_package` and `optimise_package_fabric_first`; everything
+  downstream (attribution, bills, persistence) is unchanged.
+- Phase 2 re-scores each remaining Option once against the post-fabric
+  dwelling — a handful of extra calculator calls per fabric-first Plan.
+- A fabric-first Plan can undershoot a target a plain Plan would have reached
+  within the same budget. This is by design and should be communicated when
+  scenario results are compared.