Academy Building Procurement PfS Contractors FrameworkAcademy Building

ProcurementContractors Framework

• The Contractors Framework• Delivery Timeline • Funding• Project Structure• Outline Business Case• Contractual documentation & relationships• PfS support

Introduction

Set up to deliver:

• Academies where BSF delivery vehicle will not meet

timescale

• Small BSF Projects

• Primary Capital Programme projects

• Potential 16-18 provision

The Contractors Framework

• Announced on 12 November 2009

• 2 sectors – North Sector (North West, North East, Yorkshire and the

Humber, East Midlands, West Midlands)– South Sector (East of England, South East, South West,

London)

• Fixed rates for delivering new build (at funding rates)– Adjusted for inflation and location factor– Sprinklers and capped project support funding included in new

build rates– Open book pricing for refurbishment

Framework Contractors

• Balfour Beatty Construction Ltd• BAM Construction Ltd• Bovis Lend Lease Ltd• Carillion Construction Ltd• Clugston Construction• Interserve Project Services Ltd• Kier Regional Ltd• Shepherd Construction• Sir Robert McAlpine Ltd• Vinci Construction UK• Wates Construction Ltd• Willmott Dixon Construction Ltd

North Sector Contractors

• Apollo Property Services Group Ltd• Balfour Beatty Construction Ltd• BAM Construction Ltd• Bovis Lend Lease Ltd• Carillion Construction Ltd• Interserve Project Services Ltd• JB Leadbitter & Co Ltd• Kier Regional Ltd• Rydon Group Ltd• Sir Robert McAlpine Ltd• Wates Construction Ltd• Willmott Dixon Construction Ltd

South Sector Contractors

Contractors Framework Delivery Process

Broker EoI Feasibility Implementation Open (in existing buildings)

EoI Approved

FA Signed

Procurement +FBC12 mo

OBC Construct Academy 118 – 24 mo

OBC Approved

FBC 1Approved

Transfer to New Buildings

Academy Open

00• Education Vision• Accommodation Brief• Design Brief

Transfer of Assets

00Stakeholder consultation / Design Group

Development Agreement

“Back to Back”

Building Completion

Design Dev+FBC10mo (post SPM)

Construct Academy 218-24 mo

FBC 2Approved

Applies to any Future schools in batch

Procurement Delivery Timeline

12 – 20 weeks

38 - 42 weeks

Outline Business Case

12 to 2 Framework Contractors

Invitation to Tender (ITT)

Selected Panel Member

Final Business Case/Contract Award

EOI Approved

Funding Agreement

Preliminary Invitation to Tender

Project Initiation Document

4 weeks

18 - 22 weeks

16 weeks

BSF• Academy identified within LA prioritised group of schools • Gross floor area calculated using pupil numbers and BB98• 50% new build, 35% refurbishment, 15% minor works• LAs agree locally how funding will be allocated

Contractors Framework• PfS assess sufficiency, suitability and condition• Framework contractors will deliver for funding allocation set by

DfE/PfS

£/m2 and other allocations are the same for BSF and Framework projects

Funding

Funding• PfS issues Funding Allocation Model - provides the budget, not the

design solution • DfE PM Company will capture Sponsor’s Education Vision• DfE PM Company will develop Education Brief• LA and Design Group will develop options to deliver Education

Vision and Brief within budget allocation• Allowance for abnormal costs is based on standard formulae within

the FAM• LA to identify and procure site investigation surveys• LA to consider all survey results and phasing implications for

options being considered to ascertain true abnormal costs• Abnormals to be discussed with and approved by PfS

• LAs delivering via the Framework can access up to £300k top-sliced from capital envelope for a single academy project

• For more than one academy included within a batch an LA can apply for a maximum of £400k in total

• Any approved project support funding will contribute to the LA procurement & delivery costs

• LA must submit an application, with costs to PfS

• PfS release in stages funds

Funding to Manage Procurement

Responsibility

Delivery

Department for Education(DfE)

Partnerships for Schools (PfS)

Local Authority (LA)

Legal Adviser

Communications Adviser

Education Adviser

Local Authority Project Manager/Technical Adviser

Design GroupChair: Sponsor

Managed by: LA PM/Technical Adviser

DfE Project Manager

Academy Project Steering Group (PSG) / Academy TrustChair: Sponsor

Managed by: DfE PM

ICT SIGChair: Sponsor

Managed by: LA PM

Project Structure

• Develops and agrees Education Vision and how to deliver this Vision (considering links with other organisations etc)

• Develops and agrees curriculum, staffing and organisational policies

• Agrees Design Brief (including curriculum model and schedule of accommodation)

• Develops and implements consultation plan (including any PR and publicity)

• Establishes the Academy Trust• Submits Funding Agreement to DfE for approval and

signature

Project Steering Group

• Planning and management of the building procurement process through all phases of delivery

• Report to PSG/Academy Trust on progress and performance

• Day to day management of the Design Group • Development of the Outline Business Case and Final

Business Case• Procurement of the Framework Contractor • Handover of the completed facility to the Academy Trust

LA Team supported by PfS

• To deliver Academy Projects

• To understand the model and documentation

• To educate all parties on the model

• To identify the benefits of the model

• To provide Sponsors the reassurances that they need

• To address questions quickly and to the benefit of the project

• To make the model work

Expectations of LA and DfE Project Managers

The PSG & LA Project Team establish the Design Group:

• Guardian for the Sponsor’s vision for the Academy• Main stakeholder body for consultation on all design

matters• Develops Design Brief and recommends to PSG• Responsible for ensuring design is within the agreed

funding envelope• Sets the foundation for the Minimum Design Standards

Local Review• Signs off the final designs by the Selected Panel

Member

Design Group

Membership of Design Group:• Sponsor (Chair)• LA Project Manager (day-to-day management)• Sponsor/Trust Representatives (e.g. DfE PM, Education Advisor)• Principal / Principal Designate• Local Authority Representatives

The following parties may attend if required:• Predecessor School Representative (where appropriate)• DfE Project Lead/DfE Education Advisor• PfS Project Director• Becta ICT Advisor

Design Group

Supporting Processes• Memorandum Of Understanding requires LAs to abide by PfS

Guidance • Any disputes require DfE/PfS as arbiter• Sponsor chairs Design Group• OBC and FBC require Sponsor sign off• Design Group reviews designs and confirms Selected Panel

Member• Development Agreement not signed until:

– RIBA D and Authority’s Requirements finalised– Detailed Planning Consent– FBC is approved by PfS– Design and Build Contract is ready for signature

• Risk then passed down through D&B Contractor

• Ensure LA has resources, knowledge and skills to deliver

• Brief LA, Sponsor and Project Managers• Attend at least the 1st PSG Meeting and 1st Design

Group Meeting• Attend Design Group & PSG Meetings when

necessary• Report on progress and provide general support • Attend Feasibility Sign Off Meeting, where necessary

PfS Support

• Purpose is to assess whether the scheme(s) are Affordable, Deliverable & Sustainable

• Sets out options considered for the Scheme

• Recommends a control option which is costed and within funding envelope

• Ensures LA fully understands the risks

• Prepares Scheme for procurement / delivery to the market

• Sets out agreed procurement timeline

Outline Business Case

• Overview of project and commitment of key parties

• Procurement strategy

• Design & Land issues

• Approach to ICT

• Approach to Facilities Management

• Affordability

• Readiness to Deliver

• Moving forward: preparation for procurement

Outline Business Case Contents

Contractual Relationships

PfS

Funding Agreement

SideAgreement(s)

Development Agreement(“Back to Back” Agreement)

Design and Build Contract

Memorandum of Understanding

Academy Trust

LEP/Framework

Contractor

Third Party Funders

Eg Sport England

DfE

Local Authority

ICT Service Provider

In non-BSF areas

• Removes construction risk from DfE and Sponsor/Academy Trust

• Places building procurement with LA who has capacity to manage risk

• Allows Sponsors to focus on the delivery of education

• Delivers improved value for money

• Allows VAT to be recovered for the D&B project

Benefits of Relationships

• Purpose– Enables LA to enter D&B contract and procure building

– Obliges Academy Trust to receive building from LA

– Basis for Academy Trust participation in design and construction

• Drafting Environment– LA owns land and buildings

– LA enters D&B contract and hence cannot be fettered

– LA’s ability to recover VAT under S33 of 1994 VAT Act

– Consideration between LA and Academy Trust

Development Agreement

• Provides:– Short term occupational licence

– Building lease to Academy Trust for up to 125 years

• Envisages novation of D&B Contract after Defects Liability Period– For Intellectual Property

– For Latent Defects

Development Agreement

Open (in existing buildings)

Construction

Design and Build Contract Award

Transfer to New Buildings

Academy Open

Defects Liability Period12 months min

Open in new buildings

Practical Completion

00

Transfer of Assets

Development Agreement

CompletionDate

Short Term Lease (between LA & Academy Trust)

If the Academy needs to take up occupation prior to exchange of the Development Agreement, it will do so pursuant to a Short Term lease.

The Short Term lease contains a break clause which provides that it will immediately determine on exchange of the Development Agreement, whereupon the Academy’s continuing occupation will be under the occupational licence in the Agreement.

The Short Term lease is to be developed by LA and agreed with the Academy Trust. It is likely to be based on an LA template.

Occupational Licence (between LA & Academy Trust)

The Development Agreement provides for the Local Authority to enter in turn into the D&B Contract relating to the design, construction and commissioning of Academy facilities.

The Development Agreement also provides a non-exclusive Occupational Licence by the Authority to the Academy prior to the grant of the long lease. The purpose of the Licence is to permit the Academy in certain circumstances to occupy the building (whether existing or new build) prior to the grant of the long lease, during either the development works and/or upon Practical Completion and into the Defects Liability Period.

The Occupational Licence is contained in the Development Agreement and is a standard form document. Authorities are strongly discouraged from seeking to negotiate amendments with the Academy Company which could impact upon the VAT treatment of the arrangements provided for in this Agreement.

Long Term Lease (between LA & Academy Trust)

A 125 yr Long lease is granted by the Authority to the Academy Trust on the Completion Date at the end of the Defects Liability Period.

The D&B Contract is also novated to the Academy Trust at a date immediately following completion of the Defects Liability Period

Design and Build Contract

• Based on PfS Standard Form, no amendments permitted• 2 types of contract

– Lump Sum– Target Cost

• Project specific data to be inserted– Authority’s Requirements (incl. ICT Interface)– Contractor’s Proposals

• Academy Trust named as a related party• Risk passes down to Contractor

Future Schools Agreement• Where there are non-sample schemes in the programme, a

Future Schools Agreement (FSA) is signed between the LA and the Contractor, containing a list of non-sample schemes

• The FSA provides LA with the right to request the Contractor to

develop the designs for the non-sample schools. The LA issues instructions to the Selected Panel Member to submit a Future School Scheme Proposal (containing similar detail to that worked up for the sample scheme during the ITT process) for consideration

• The FSA does not oblige the Authority to grant the non-sample school project to the Contractor nor does it grant exclusivity to the Contractor

PfS Academies Team• Colin Howell, Academy

Director

• Paul Adam

• Simon Brown

• Annabel Choppen

• Richard Crosby

• Samantha Crowe

• Franziska Empl

• Mark Hayward

• Kerrie Norman

• Dapo Obatusin

• Amjid Raza

• Jill Swales

• Crawford Wright