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Budgeting for Education Construction Projects

20th November 2024   |   Liz Clarke   |   Reading Time: 4 minutes

Budgeting for education construction projects is no small task. For schools operating within tight financial constraints, careful cost planning can make the difference between achieving a project’s goals and having to scale back ambitions.

There are five main models of schools in the UK: Academy/Free Trusts, Faith, Community, Grammar and Private Schools. Whilst all schools share similar challenges around maintaining education during a building project and wanting to achieve the best possible outcomes for their budget, the different types of schools will have varying degrees of flexibility in overcoming them.

This article considers general affordability and other factors that influence construction projects for educational establishments and how to manage them for the best results.

Understanding School Budget Constraints

It’s no secret that UK schools operate on challenging budgets. If an additional building, an extension or even a whole new school is needed to meet community needs, the project must be proactively managed to deliver a high-quality building that will support the school in meeting its goals for the children they teach.

Whether the school is an academy or free trust, community, faith, grammar or private school will impact their budget. For example, a private school or academy trust may have more freedom to set its budget than a community or faith school that relies on the local education authority or diocese.

Unless building work can be fully undertaken during school holidays, the project will incur costs to remain operational when the school is open, such as the cost of moves and/or temporary accommodation.

Similarly, safeguarding and security require consideration in the budget. Safeguarding measures might include controlled access to construction areas, temporary barriers, and enhanced site monitoring, all of which incur associated costs that need careful planning.

If work occurs across exam periods, it may be necessary to plan for out-of-hours work either after the school day or over weekends – again, factors that must be properly costed and allowed for within the cost plan.

Key Cost Factors in Education Construction Projects

Building a new school building or extending existing facilities are complex projects with unique cost-influencing factors.

Managing decants, temporary classrooms and accommodation, or phased moves require careful coordination to maintain a safe live environment and avoid adversely affecting teaching standards and outcomes.

Schools may also face challenges in achieving a build that meets their needs whilst being affordable.

Evolution5 has extensive experience providing project and cost management services for these projects.

Common factors that influence budgeting for education construction projects

Primary, Secondary & Further Education: Whether the school is a primary school, secondary school, or a college for further education affects the cost of construction projects. Industry regulations differ according to the end use of the school.

For example, primary school classrooms are smaller, whilst secondary schools and colleges must be able to accommodate older children and those approaching adulthood. This also impacts the heating, ventilation and cooling standards that must be met, and more technical facilities are typically required for older children.

New Builds vs Extensions or Refurbishments: It is unusual for an entirely new school to be built in a fully operational environment. By contrast, extensions, additional buildings or refurbishment projects usually require the school to remain fully operational throughout the construction, with minimal impact on teaching staff and students.

Location and Size: As with any construction project, the general location and size of the school or college have cost implications for building work. For example, a 3-form entry primary school will be smaller than a 7-form entry secondary school – both teaching space and space for other facilities.

Building type & site conditions: The use of traditional construction or modular accommodation for the new buildings influences the cost of the building itself, along with the project programme and construction phase plans.

Restricted access to the site or difficult site conditions will impact the project’s cost. As with any construction project, the biggest risk here is unknown site conditions that become known once work has started and subsequently cause delays. This risk can be reduced with thorough site investigations during the planning process.

Regular budget reviews and robust site investigations during the planning phase can help minimise these risks.

Budget Setting Challenges

Setting the budget for a school building project can be challenging. Budget setting cycles often occur as much as two years before a project starts on site. During that period, a previously affordable project can easily become “over budget”.

The phrase “over budget”, however, deserves clarification. Material and labour cost volatility, inflation, and other factors, such as global economics, increase building costs, meaning the budget has become inadequate for the project’s goals rather than the project being over budget. A small but important distinction.

Similarly, framework rates that may have been set as long as 3-5 years ago no longer reflect realistic costs for building projects.

This can, understandably, be disappointing when the school discovers they can no longer afford the building they had been planning for so long.

Example Education Projects

Over the years, the Evolution5 team has provided cost management services for an extensive portfolio of education projects.

Learn how we helped Mountbatten School in Romsey build a new administration block that they thought was unaffordable.

Find out more about the provision of SEN facilities with the Royal Borough of Greenwich at Wickham Lane SEN School.

Read full details of a two-year new build, extension and refurbishment project with the Royal Borough of Greenwich at John Road School.

Click here for full details of a new build and refurbishment project with the Royal Borough of Greenwich at Eltham Hill School.

Find out more about the provision of cost management services for the master plan at the University of Winchester’s West Downs Campus.

How Evolution5 can help

Whether your school is planning a small extension or a major redevelopment, our team has the experience to ensure your budget is managed effectively from start to finish.

To discuss how our quantity surveying and cost management support for school projects for local education authorities, academy trusts, faith, and private schools could help your project reach a successful conclusion, contact the team today.