Friday 13th June 2014
The Education Funding Agency has now published further guidance regarding PSBP 2 and how schools and other bodies can apply to be part of it. The guidance is available online at https://www.gov.uk/government/publications/priority-school-building-programme-2-psbp2
Expressions of interest to be part of PSBP2 must be submitted online, through a portal which is expected to go live at some point in early June and will close on 18 July, so it is important to note that there is likely only to be a very short window for schools to collate and submit the information. One point that has been clarified in this further guidance is that there are no current plans for there to be a privately financed component to PSBP2, so the projects are to be funded by way of capital grant.
Who can submit an expression of interest for PSBP2?
Individual schools, whether maintained or academies can apply to be part of PSBP2. Local authorities can submit expressions of interest for any maintained schools in their area, and it is also open for academies to join with their local authority for these purposes. The trustees of voluntary schools can also submit expression of interest for any or all of their schools, and multi-academy trusts can also submit applications on behalf of any or all of the schools.
What has been said about the criteria for eligibility?
The guidance reiterates the fact that PSBP2 is designed to address condition rather than capacity issues (although there may be the potential of combining the two), and it is only designed to address those projects where the condition issue is sufficiently great that funding it through other programmes will be unrealistic, ie. where a complete rebuilding or very substantial refurbishment is required. However, there must be a fundamental long term demand for places in the area for the project to be likely to be eligible.
The guidance also makes it clear that the same procurement route (ie. batches of projects procured by EFA) is going to be used as for the first phase of PSBP. In addition, it is made clear that the standardised designs developed for PSBP are also going to be adopted: indeed the expression of interest process is designed to prevent schools who do not accept that principle from completing their applications.
What information needs to go into the expression of interest?
The details of the school will need to be included, together with acknowledgements that the procurement and design processes are accepted and understood.
Such details as you have of existing condition or other building issues (eg. asbestos) need to be disclosed so that projects can be priced as accurately as possible as early as possible.
Schools where there is a third party freeholder (eg. VA schools or academies who have a 125 year lease from the local authority) need to have consented in principle to the possibility of the works, so early contact needs to be made with them.
Details of any third party occupiers on site, the presence of which might impact on the delivery of the build also need to be disclosed. However, based on the PSBP1 experience, this legal information will be further refined as part of the feasibility study.
What legal documents will schools enter into if they are successful in their application?
The legal documents that the school will need to enter into are a Memorandum of Understanding at the feasibility stage, and a back-to-back agreement with EFA on financial close of the project. EFA are stressing that these are standard form agreements that cannot be altered. However, we do have a number of concerns on these agreements regarding the lack of contractual certainty that it gives the schools on what will happen. EFA are presenting PSBP to schools on a “take it or leave it” basis, and it is very important that schools understand the implications of that before signing up for the process.
For more information please contact:
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