Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Accepted
Require DfE to provide assurance on School Rebuilding Programme timetable, costs, and scenario planning.
Conclusion
The School Rebuilding Programme is behind its initial schedule for getting contracts in place and schools built. DfE announced the School Rebuilding Programme in June 2020. By March 2023, it had delivered one project compared with a forecast four, and awarded 24 contracts compared with a forecast 83. Price inflation and other market conditions have made it difficult to find contractors. DfE 8 The condition of school buildings has reacted by offering risk-sharing arrangements that are more attractive to the building sector and by standardising the design of buildings. DfE concedes that it will not be able to catch up on projects where it is already behind the planned timeframe, but it is confident it will stay on track for upcoming projects. We have seen how changes in the external environment, such as movements in inflation rates, may affect programmes and create complexities. These factors may mean a programme can no longer achieve its intended outcomes, or it is too costly to do so. Recommendation 8: DfE should provide us with assurance that it has a good understanding of how current and likely future challenges will affect the timetable and costs for the School Rebuilding Programme, including by carrying out appropriate scenario-planning should likely and significant risks materialise.
Government Response Summary
The government agrees and aims for implementation by December 2024, stating the School Rebuilding Programme robustly manages risks through continuous monitoring and regular IPA gateway reviews. It highlights that the NAO noted steps already taken to address delays and that overall progress is on track.
Government Response
Accepted
HM Government
Accepted
8.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2024 8.2 There are now over 500 schools in the School Rebuilding Programme, including schools with RAAC that need rebuilding projects. The department made rapid progress in setting up the programme and had selected 400 schools by December 2022, ahead of schedule. 8.3 While the National Audit Office (NAO) highlighted that the department had not met initial programme forecasts for the number of contracts awarded, these forecasts were made ahead of the impact on the construction market of significant global events outside of the department’s control that could not have been reasonably predicted, such as the Russian invasion of Ukraine. 8.4 The NAO made clear in its 2023 report on the condition of school buildings that the department has already taken steps to address delays related to these issues, including changing project funding policy to reflect market conditions. There are indications the department is now seeing a more stable position, with overall progress on track to deliver the programme as planned. Where construction contracts have been awarded to date, the department has been delivering projects, faster on average, than expected durations. 8.5 The programme is part of the government’s major projects portfolio. The programme manages risks robustly, continually monitoring the horizon for internal and external factors that could impact on delivery, so it is able to respond quickly to such challenges. There are established processes for formally reviewing progress and overall risks to delivery of the programme through regular Infrastructure and Project Authority (IPA) gateway reviews. The IPA has previously rated progress as very good and commented that the programme was well managed. The next gateway review is expected to take place later in 2024.