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Transparency data

DfE Government Major Project Portfolio data, September 2015

Updated 7 July 2016
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Project Name Priority School Building Programme 1 (PSBP1) - Capital Priority School Building Programme 2 Priority School Building Programme - Private Finance
Department DFE DFE DFE
IPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the IPA Annual Report) Amber/Red Amber/Red Amber/Green
Description / Aims To rebuild or refurbish the 260 schools in the worst condition across England. 214 schools are being funded through capital grant funding and 46 schools are being funded through private finance. To rebuild or refurbish individual school buildings (or blocks) in the worst condition across 278 schools in England. All schools are being funded through capital funding. To rebuild 46 of the schools in the worst condition across England through Private Finance.
Departmental commentary on actions planned or taken on the IPA RAG rating. A number of external factors continue to impact the programme, the most significant being the recovery of the construction market. Over the last 22 to 24 months we have experienced a lack of interest from the contractors in the new batches being released into procurement and delays on a number of schemes as contractors seek additional funding to cover increasing costs of labour and materials. This has resulted in delays against our internal delivery programmes, expenditure slipping backwards and an increase in the overall cost to deliver the programme. The PSBP is continually reviewing the market strategy. To mitigate the risks described above we have expanded the number of procurement routes that we are using: we are now using the EFA Contractors Framework, the EFA Regional Framework, we have procured two batches of schools using the CSS modular framework and we are currently preparing documentation to allow us to OJEU projects. The Education Funding Agency is also reviewing the location factors and the base funding rates to ensure that the funding envelopes we set are competitive. In addition we have ensured that every project has a back up" option available. Should a procurement fail, the project has been named in a second procurement so it can be quickly switched to a second procurement option. Although the programme is at an early stage of development and the SRO is confident that good progress is being made, there is growing evidence of a significant increase in demand for construction capacity leading to cost pressures to deliver the programme to the agreed timeframe and capital budget. This is being addressed as more detailed feasibility assessments are made of the individual projects. The delivery confidence remains amber green. All 5 Private Finance batches have reached financial close. There are 8 PF schools opened to children as at April 2016 and a further 37 schools on site in construction. A total of 30 schools are expected to be open by December 2016.
Project - Start Date (Latest approved start date) 19/07/2011 01/05/2014 19/07/2011
Project - End Date (Latest approved end date) 01/01/2019 31/03/2021 01/04/2018
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) The majority of new or refurbished school buildings will be handed over by the end of 2017. Some projects are affected by market interest and technical issues and this means that their delivery timetables will go beyond the the end 2017. Following handover of buildings the EFA oversees the one year defects liability period. The programme end date is forecast as 15/04/2020. The programme is at an early stage of development and the programme is currently being developed. The programme is on track to deliver 45 schools by December 2017 and Oakbank School (which was recommended for listing by Historic England) is expected to open to the public in April 2018.
2015/16 Budget (£million) £693.44 £38.50 £221.42
2015/16 Forecast (£million) £801.80 £10.33 £234.35
Variance Budget / Forecast %age 15.63% -73.16% 5.84%
Total budgeted whole life costs (£million) (including Non-government costs) £2,023.30 £1,580.79 £2,085.52
Departmental Narrative on Budget / Forecast variance for 2015/16 where more than +/- 5% The baseline for 2015/16 expenditure is based on the current approved programme budget of £2,023m, therefore is different to the revised forecast which was reported to the Treasury in May as part of the Spending Rreview preperations and included in the Q1 GMPP submission. The HMT Settlement of January 2015 is £2,120.6m. The current capital forecast outturn for the programme remains at £2,298.8m. This represents a £178.2m overspend compared with the January 2015 Funding Settlement but remains in line with the latest forecast expenditure prepared in August 2015 and reflects a number of changes in scope to the programme. Initial development stage of programme extended to allow for more detailed feasibility appraisal of projects ahead of procurement. Delays to the financial close of 3 batches (HLR, NE & Yorkshire) led to reduced costs and a variance in 15/16 due to delayed start of UC payments aside from one school to 16/17 and 17/18.
Departmental Narrative on Budgeted Whole Life Costs Initial capital investment to address the poor condition of school buildings will avoid significant future costs to deal with a deteriorating estate and help to avoid any incidences of basic need pressure created through obsolecence. Initial capital investment to address the poor condition of school buildings will avoid significant future costs to deal with a deteriorating estate and help to avoid any incidences of basic need pressure created through obsolecence. Forecast Whole Life Costs of £1,517m are significantly below budgeted whole life costs due to favourable interest rates and savings due to the economies of scale of the aggregator structure.