Source · Select Committees · Public Accounts Committee
Recommendation 34
34
Accepted
Inflationary pressures significantly delayed School Rebuilding Programme contract agreements and project delivery.
Conclusion
DfE told us that in its building programmes, and particularly the School Rebuilding Programme, it had taken longer to agree contracts because of inflationary pressures in the building industry.54 DfE explained that it had responded by amending its funding policies, and developing an ‘alliance model’ involving risk-sharing and greater elements of standardisation, which should help construction firms to manage cost pressures and improve their speed of delivery. DfE accepted that it would not catch up on the initial projects that had fallen behind, but in terms of the overall programme it still believed that it was on track.55
Government Response Summary
The government states it has already taken steps to address delays caused by inflationary pressures, including changing project funding policy, and is now seeing a more stable position with overall progress on track and projects being delivered faster than expected.
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.