THE healthy level of construction work being let under the government’s Schools Rebuilding Programme is creating growing opportunities for new contracts across the country, according to research by Glenigan.
More capacity is needed in the sector to accommodate a 15% rise in secondary school pupil numbers which the Department of Education is expecting by 2027. Under the Schools Rebuilding Programme, the government has committed to rebuilding 500 schools over the next decade.
After the first 100 schools under the programme were announced last year, the government confirmed last month that it expects to ‘prioritise’ up to 300 schools in 2022 and 2023.
Meanwhile, the Chancellor’s recent spring statement in March showed the education department capital budget is set to increase from £5.2bn in 2021/22 to £6.3bn in 2022/23 and to £7bn in the following year.
However, doubts have been raised over whether the increase will be enough to tackle the full scale of disrepair in the school’s sector. Emails from senior officials at the Department for Education that were leaked to The Observer in early May say that many school buildings in England are now in such disrepair they are a “risk to life” according to internal government documents leaked to the Observer.
The officials call as a matter of urgency for the Treasury to make extra billions available to increase the number of school rebuilding projects from 50 a year to more than 300. And from the emails it’s clear that the DfE is battling with the Treasury for £13bn, now available as a result of recent reforms to higher education, to spend on school repairs. Senior civil servants at DfE are quoted as writing: “School buildings: the deteriorating condition of the school estate continues to be a risk, with condition funding flat for FY [financial year] 2022-23, some sites a risk-to-life, too many costly and energy-inefficient repairs rather than rebuilds, and rebuild demand x3 supply.”
In the meantime, major contractors such as Wates, Wilmott Dixon and Kier Group are benefitting from a healthy workload in the education sector. Amongst its recent contract wins, Kier Group recently highlighted its appointment to the £7bn Department of Education 2021 Construction Framework. And the Government’s pledges on schools are translating into some significant new projects for contractors of all sizes across the industry, particularly in the Midlands and the North West. In April alone, Glenigan data shows work started on numerous new schemes under the Schools Rebuilding Programme.
The future pipeline for smaller school projects beyond this year also looks healthy. Across the country, Glenigan data highlights dozens of rebuild projects at schools selected under the School Rebuilding Programme - typically valued at £5m - which are at the pre-tender and pre-planning stage and where work is due to start over the next 18 months.