Report to the Cabinet Member for Children and Schools
Report submitted by: Executive Director for Children and Young People
Date 15 July 2011
Part I - Item No. 3
Electoral Division affected:
All
Capital Strategy for Schools 2011/12 – Condition Led Capital Investment
Programme
(Appendices 'A' and 'B' refer)
Contact for further information:
Rob Muirhead, (01772) 530694, Directorate for Children and Young People,
rob.muirhead@lancashire.gov.uk
Executive Summary
This report sets out proposals for the allocation of schools capital funding to address
the backlog of high priority building condition repairs in Non Voluntary Aided
Maintained Schools in Lancashire. As part of the repairs programme, the report also
includes proposals to undertake measures to reduce fossil fuel Carbon Dioxide
(CO2) emissions where this is practicable and represents value for money.
This is a Key Decision and has been included in the Forward Plan.
Recommendation
The Cabinet Member for Children and Schools is recommended to:
1. approve the allocation of £ 10,706,573 to fund the first phase of high priority
school repairs and reduction in CO2 fossil fuel emissions in Lancashire
schools programme; and
2. note that further reports will be presented with details for subsequent phases
of school premises repair and CO2 reduction proposals.
Background and Advice
On 22 March 2011 the Cabinet Member for Children and Schools approved the
development of the Capital Strategy for Schools 2011 – 12. Section 3 (a) of the
report outlined proposals to allocate funding on (building) condition led projects. It
was previously envisaged that the Buildings Schools for the Future and Primary
Capital Programmes which were abated last year would have addressed much, or all
high priority school repair needs and also introduce a range of CO2 reduction
measures.
-2Through a process of cross referencing Asset Management building condition data
held by the County Council and interrogation of premises infrastructure service
contract report information, Lancashire County Council's Property Group Service
have formulated an initial schedule of Priority 1 school repairs and CO2 reduction
measures as set out in Appendix 'A'. Department for Education (DfE) Schools Asset
Management Guidance defines Schools Priority 1 repairs as:
Priority 1. Urgent work that will prevent immediate closure of premises
and/or address an immediate high risk to the health and safety of
occupants and/or remedy a serious breach of legislation.
In conjunction with the repairs schedule, Property Group have developed proposals
to coordinate repairs with a programme of measures to reduce CO2 fossil fuel
emissions were this is practicable and represents value for money. Appendix 'B'
refers.
Given the significant backlog and therefore cost of Priority 1 repair needs and CO2
reduction measure proposals it has been considered prudent to verify this data by
undertaking individual site visits to establish the validity of the condition data and
costs associated with undertaking the necessary repairs. Given the number of
validation visits required, Property Group has appointed Constructor Partners to
undertake this process.
At this stage it is difficult to predict the length of time required to complete the
validation process, but, site visits are likely to run throughout summer. Consequently,
as a means of starting to make inroads into the schools repairs backlog, it is
proposed to undertake repair and CO2 reduction measures on a phased basis as
validated data is made available. This report provides details of the first phase of
validated Priority 1 repair and CO2 reduction proposals.
Verified Priority 1 Data Cost Management – Agreed Maximum Price
The condition surveys for each school provide a schedule of the maintenance work
required at the premises and an initial budget based on an estimated of the cost of
the work involved.
The appointed Constructor Partners have provided verification of the condition data
and, as part of that verification, they have reviewed the budgets set against each
school and have amended those budgets where appropriate.
The Constructor Partner will assist Lancashire County Council's Quantity Surveying
team in the production of quantities and measures from surveys and / or drawings to
produce quantified schedules of works.
The initial verified budget will be superseded by an Agreed Maximum Price which will
be subject to the scrutiny of Lancashire County Council's Quantity Surveying team
and will be calculated by establishing the costs of the quantified schedules of works.
The schedules will be priced using net current rates, or on a works package basis for
specialist trades and will also include:

Preliminaries to cover site establishment costs, supervision, health and safety
measures etc.
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-3
Provisional sums where known work cannot be fully detailed

A risk allowance based on an appropriate risk assessment for the project.

Any discounts offered to the Constructor Partner from the supply chain

Overheads and profit.
2011 – 2012 Schools Capital: Programming Repairs
With further reference to the Capital Strategy for Schools 2011 – 12 report and the
need to spend available capital in year, programming of repairs will need careful
planning if spending is to be maximised.
Although disruption to normal daily school activities will be kept to a minimum, the
nature and extent of some proposed repairs, e.g. heating system replacements,
electrical rewires, replacement of roof coverings, etc, may be such that it would be
impractical or unsafe to undertake work unless the school is able to make the
affected areas of the premises available, or, work can be scheduled to take place
during holiday periods.
Consequently, in order to maximise spending, it is proposed to undertake high
priority repairs only where schools are able to practically and safely accommodate
the work in year. Further consultation will take place with schools to determine and
agree if verified Priority 1 repairs are able to be undertaken within the current
programme. Schools which are not able to accommodate repairs this year, will,
subject to future funding allocations and spending priorities, be scheduled as a first
priority within subsequent schools repairs programmes when longer planning and
preparation lead in times can be programmed.
Phase One Proposals
Appendix 'A': sets out details of the proposed first phase of Priority 1 condition led
school maintenance repairs. Only repair costs above the capital threshold identified
in the Scheme of Finance for Schools de minimis i.e. £ 15,000 for secondary schools
and £ 10,000 for nursery, primary and special schools have been included in the
repairs schedule proposals. It is expected repairs below these values would be
undertaken by schools themselves under the scheme of delegation.
Subject to completion the formal Agreed Maximum Price process the cost of Phase
One Structural, Engineering Services and fossil fuel CO2 reduction proposals is
estimated to be £ 10,706,573 inclusive of contact costs, professional fees and risk
contingency.
Carbon Reduction Strategy
Carbon Management is a key theme of the capital investment programme and has
been identified as a key driver across the County in the work to control costs and
reduce carbon emissions.
Schools have been at the forefront of this activity and they are assisted in their day
to day efforts by officers from a number of Directorates to help them purchase
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-4energy as cheaply as possible, monitor their usage and take action to reduce
consumption. However, it is important investment is made in fabric, infrastructure
and equipment to ensure that savings are maximised.
Typical carbon reduction projects involve:




Replacement of inefficient boilers
Installation of heating controls
Installation of locally controlled thermostatic radiator valves
Replacement of electrical heating systems
It is anticipated that the fourteen carbon reduction schemes identified in Appendix 'A'
are projected to reduce carbon emissions by a total of 304 tonnes and energy used
for heating by 1,270,000kWh annually.
Consultations
No Consultations have yet been held. It is proposed to consult schools and Diocesan
Authorities following the awaited Government announcement concerning the
recommendations set out in the recently published; Sebastian James Review of
Education Capital.
Implications:
This item has the following implications, as indicated:
The financial implications are included in the report
Risk management
The County Council needs to demonstrate the ability to spend the schools capital
allocation for reasons listed below. Therefore, only projects that do not require
consultation under School Reorganisation Regulations, that have not already begun,
can be considered for the 2011/12 year.
Due to the nature of building maintenance works, the full extent of repairs required
may not be apparent until hidden parts of the building infrastructure are exposed,
which may result in the need to undertake additional work and therefore increased
project costs. As a risk contingency to enable necessary repairs to be undertaken in
these circumstances it is proposed to include a sum, controlled by the
commissioning service; CYP: Capital and Provision Planning Team of 5% of Net
overall repair costs - £460,778.
Financial
The County Council approved Capital Programme includes £ 34.5m for new starts
on schools. The Schools Led Condition Investment Programme allocation is to be
met from this approval.
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-5If the County Council is not able to demonstrate ability to spend, or at least commit
the 2011/12 allocation there is a risk that the DfE could determine a proportionate
reduction in future years' allocations.
Any representations made to the Cabinet Member prior to the issue being
considered in accordance with the Public Notice of Forward Plans
Name:
Organisation:
Comments:
Nil
Local Government (Access to Information) Act 1985
List of Background Papers
Paper
Date
Contact/Directorate/Tel
Report to the Cabinet Member
For Children and Schools:
Capital Strategy for Schools
2011 - 12
22 March 2011
Rob Muirhead, Directorate
For Children and Young
People, Ext: 30694
Reason for inclusion in Part II, if appropriate
N/A
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