The governing body is responsible for building work in the school. This work is much more complex than building work in homes, being complicated by numerous regulations and guidelines. It is also administratively intensive and can cause serious cashflow problems. However, providing the guidelines in this section are followed, professional consultants and DBE officers undertake many of the tasks associated with capital premises related work on behalf of governors: bills are paid from DBE funds and grant claimed or used on behalf of the governing body; governing bodies receive an interest free loan while the work is being undertaken, although we do expect governors to repay their portion of the costs as soon as possible. Loans are available at a small rate of interest and governors should always discuss any problems they are facing with the Diocesan Director of Education.

Work which is revenue and not capital (see sections 2 and 3) is funded entirely from the school’s Fair Funding Budget provided by the Local Authority (LA).

Schools are recommended to keep track of their LCVAP or TCF expenditure using the VASIS system (See Appendix 6, Keeping track of expenditure).
 

These guidelines are divided into two sections. The main part is all most governors will need to read. The remainder are appendices, largely for the use of consultants and are provided so that governors can see all the stages involved in the process.

Contents of this section:
1 Introduction
2 Revenue Work
3 Capital Work
4 Undertaking Capital Work
    4.1 General
    4.2 Statutory proposals
    4.3 Projects funded entirely from DFC
    4.4 Projects requiring DCSF grant from other sources
5 Responsibility for Work
6 Repairs to remedy faulty work

Appendix 1: The School Building Consultant’s Role
                1(a) The DBE Role
Appendix 2: Information for Consultants
                2(a) Statutory and Best Practice Criteria
                2(b) The Construction (Design and Management) Regulations 1994 (CDM)
                2(c) Asbestos checks
                2(d) Sustainable school buildings
                2(e) Design quality indicator (DQI) for schools
Appendix 3: Capital Expenditure
Appendix 4: Financing Building Work
Appendix 5: Insurance
Appendix 6: Sources of funding
Appendix 7: Glossary of terms

 

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1 INTRODUCTION
The Governing body is responsible for the school buildings. Any building work has numerous regulations associated with it and for building work in schools there are numerous additional procedures and rules. Appendices 2(a) to 2(e) give an indication of the complexity involved. The DBE has a duty to ensure all regulations are met and appropriate procedures followed. It is illegal for capital building work to be undertaken unless the DBE has approved the work (Diocesan Boards of Education Measure 1991).

Each school needs appropriate professional advice to guarantee compliance with regulations and to ensure that the best building solution is achieved. This advice is provided by a consultant, selected by the governors and approved by the DBE. Their work is monitored by independent technical advisers working with the DBE.

Apart from unforeseen repair work, building work should form part of a building development plan produced with the agreement of the governors by the school’s building consultant. The role of the consultant is explained in Appendix 1.

Most of the work explained in this section is undertaken by either the school’s building consultant or DBE officers. However, the consultant’s role is to advise; it is for governors to make decisions. At every stage, the governors must be informed by the consultant.

The funding of such work comes from several sources depending on the type of work. Some (revenue work) is funded directly from the school’s Fair Funding Budget from the LA, some (capital work) receives grant of up to 90% from the DCSF (with the governors finding the other 10%) (See Appendix 6), some may be funded from other sources (such as special Government or Local Authority (LA) initiatives) and some must be paid for entirely by the governing body (such as areas entirely for Church use).

1.1 Financing building work
Numbers in [ ] indicate the section in this guidance to be consulted.  Click on any information in [ ] to move to that section.

 

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2 REVENUE WORK
All revenue work is LA liability and the funding is normally delegated through the school’s Fair Funding budget. Such work does not attract grant and schools should arrange such work and payment in accordance with their LA’s guidelines, without reference to the DBE office.

Revenue work is any work which is under £2,000 or is not capital work.

3 CAPITAL WORK
The definition of capital work is deliberately vague, enabling governing bodies in many smaller projects to decide whether they wish to class work as capital and obtain 90% grant, or as revenue and fund it entirely from their Fair Funding budget. Since governing bodies may use money from their Fair Funding budget towards their 10% payment, it is often beneficial, where possible, to class work as capital when capital funds are available.

All capital expenditure requires the approval of the DBE.

For a full definition of capital expenditure, see Appendix 3.

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4 UNDERTAKING CAPITAL WORK
4.1 General

• The procedure to be undertaken depends on the category and cost of the work (see sections 4.3 and 4.4).

• All projects are either Category 2 or Category 3.

• For approved work, governors receive a grant of 90% towards the cost, including any fees and VAT.

• Each year the school is allocated a devolved formula capital (DFC) provision. This money is held on behalf of the school by the DBE. See section 4.3 for more details.

• Capital work that cannot be afforded entirely from DFC must be submitted as a bid to the DBE on form Capital/Bid that is sent to the school and their consultants annually and can be downloaded from the DBE website (www.chester.anglican.org/schools). This form must be completed by the school’s consultant and certified by the governing body.

• Prior to undertaking any work, governors should ensure that it is their responsibility (see section 5). Work related to playing fields or buildings on them is the responsibility of the LA. DBE officers will be pleased to offer advice.

• Governors must adhere to the cost bands otherwise the DCSF will withhold grant. Governors could then find themselves liable for the entire cost of the project.

• Work cannot start on site until full DCSF approval is given (but see 4.3 below for DFC-only projects).
  Governors could be personally liable for any work undertaken without full approval.

4.2 Statutory Proposals
Before certain classes of work can be undertaken, public notices must be published and the approval of the School Organisation Committee, Adjudicator or Secretary of State received. This is a separate approval from that necessary prior to the work commencing and governors should be aware that the process takes several months. Such approval is required for:

• the establishment of a new school;

• a significant change in character of a school (e.g. a junior school becoming a primary school);

• the establishment of a nursery at a school;

• a significant enlargement of a school (i.e. more than 25%).

A Transfer Order is required when a school moves to a new site.

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4.3 Projects funded entirely from DFC (These are Category 2 projects)

• To obtain approval for ICT only projects where there is NO structural work Form DFCICT/Approval (which can be downloaded from www.chester.anglican.org/schools) should be submitted to the DBE office with supporting documentation.

  • Governors must ensure there are adequate funds remaining in the DFC allocation. Requests to bring forward money from a future year should be made on Form DFC/Spend which can be downloaded from www.chester.anglican.org/schools.

  • Projects will not be approved unless certified by the governing body.

  • Headteachers will be notified when a project is approved to proceed and at this time will receive Form DFC/Final which will include a project number.

  • Once approval is received from the DBE, the project may commence.

  • Invoices and fee notes should be sent to the DBE office for payment.

  • If costs are less than projected on Form DFCICT /Approval, this form must be resubmitted with a revised section 4.

  • If costs are more than projected on DFCICT /Approval, a new submission must be made.

  • When the project is completed, Form DFC/Final must be completed and returned to the DBE office.

• To obtain approval for other DFC only projects Form DFC/Approval (which can be downloaded from www.chester.anglican.org/schools) should be submitted to the DBE office with supporting documentation. Governors should ensure they have completed section 8 of this form.

• Projects will not be approved unless submitted by the school’s consultant (and will be subject to the payment of fees) and certified by the governing body (See Appendix 6).

• Governors and consultants must ensure there are adequate funds remaining in their DFC allocation. Requests to bring forward money from a future year should be made on Form DFC/Spend which can be downloaded from www.chester.anglican.org/schools.

• Consultants (or headteachers in the case of ICT only projects) will be notified when a project is approved to proceed and at this time will receive form DFC/Final which will include a project number. When the project is completed, this form must be completed and returned to the DBE office.

• See Appendix 6 for information on DFC.

4.4 Projects requiring DCSF’ grant from other sources (See Appendix 6)

Other projects are either Category 2 or Category 3 depending on the value of the project (see below). For each of these, the following procedure is undertaken:

• Projects will not be processed unless submitted by an approved consultant.

• Governors must ensure there are adequate funds remaining in their DFC allocation for the part being funded from that source. It is expected that governors will use part of this allocation to help fund the project.

• Bids for work must be made on form Capital/Bid that is sent to school and consultants annually. This can be downloaded from www.chester.anglican.org/schools. Failure to complete the form fully will hold up any submission. It is advisable to discuss such projects with DBE officers prior to such submissions.

• When a submission is to be made to the DCSF, the procedure in Appendix 2 should be followed. Form VA/Approval and the fully completed VADBE/Approval provided by the DBE. Governors should ensure they have completed section 3 of Form VADBE/Approval.

• The written approval of the DBE will be provided when DCSF’ approval is given.
   

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4.4(a) Category 2
Capital projects with a total value of building work up to £499,999 (excluding fees and VAT) for primary schools or £999,999 (excluding fees and VAT) for secondary schools

• For projects funded entirely from DFC, see section 4.3.

• Bids for work must be submitted by the school’s consultant to the DBE office on form Capital/Bid by Easter for work in the following year.

• Grant for these projects comes from the LA Co-ordinated Voluntary Aided Programme (LCVAP) (See Appendix 6). DBE officers negotiate on behalf of governors for these grants. The bids always exceed the finance available and consequently not all bids are successful. The Asset Management Plan is used to demonstrate the priority of the work. The work should normally be part of the school’s building development plan.

• Schools are notified of the outcome of bids usually in February or March prior to the work commencing.

If the bid is successful, the process which is followed by the consultant can be seen in Appendix 2.

4.4(b) Category 3
Capital projects with a total value of building work of £500,000 (excluding fees and VAT) and above for primary schools or £1,000,000 (excluding fees and VAT) and above for secondary schools

• Bids for work must be submitted by the school’s consultant to the DBE office by Easter for work in the following year (TCF allocations (see Appendix 6) are only made every other year).

• The work should normally be part of the school’s building development plan.

a) Projects that are not Named Projects

• Grant for these projects comes from the LA Co-ordinated Voluntary Aided Programme (LCVAP) (See Appendix 6). DBE officers negotiate on behalf of governors for these grants. The bids always exceed the finance available and consequently not all bids are successful. The Asset Management Plan is used to demonstrate the priority of the work.

• Schools are notified of the outcome of bids usually in February or March prior to the work commencing.

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b) Named projects

• Every two years DCSF invite local authorities to submit bids on behalf of the VA sector for funding large scale capital work (TCF), or for capital work to meet an exceptional growth in pupil numbers (usually referred to as Basic Need)

• Bids for named projects require more detail as they are scrutinized by DCSF building professionals to assist in deciding whether to approve the project. Bids are judged nationally and many bids are unsuccessful. The information which the consultant must provide can be seen in Appendix 2.

• Approval for projects comes directly from DCSF.

• Successful bids receive an advance payment in the form of a Project Development Allocation (PDA) of up to 7½% of the estimated total governing body’s expenditure. This is for professional fees to prepare for Approval to Proceed to Tender (ATP) stage and any exploratory site work. Receipt of a PDA does not guarantee the approval of the project.

• The process which is followed by the consultant can be seen in Appendix 2.

5 RESPONSIBILITY FOR WORK
The governors are responsible for:

• The existing buildings (internal and external) including kitchens, dining areas, medical/dental rooms, swimming pools, caretakers’ dwelling houses;

• perimeter walls and fences, even if they are around the playing fields;

• playgrounds;

• furniture, fixtures and fittings – including ICT infrastructure and equipment (see Appendix 6 for more details);

• other capital items (which can include boiler replacements and replacement of services).

LAs are responsible for:

• playing fields (including sports pitches and hard surfaced games areas);

• buildings on those fields and related to their use.

If buildings are provided solely for parochial use, then no grant is payable for either their provision or maintenance. Governors should ensure that they are entirely funded by the parish.

Teacher’s houses, unless they have been adopted for school use, are the responsibility of the trustees. For further advice contact DBE officers.
 

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6 REPAIRS TO REMEDY FAULTY WORK

• If remedial work is found to be necessary either during a project or prior to the final settling of accounts, then it should be carried out at either the contractor’s or consultant’s expense.

• In other situations, consideration will need to be given as to whether there are grounds to pursue a claim against those responsible and governors should seek legal or technical advice as necessary. The advice of DBE officers should be sought. Delay in commencing proceedings can result in a claim failing due to the expiry of the statutory limitation period. Cases should only be pursued where there is a reasonable prospect of success.

• The cost of meeting professional fees in pursuing a legal remedy should normally be met from governors’ insurance. The Secretary of State may consider paying grant on costs when insurance cover is exhausted. Each case is considered on its merits.

Grant may not be paid if governors have repaired faulty work at their own expense when a claim should have been pursued.  Use of a different contractor to repair faulty work will invalidate any guarantee of the previous contractor.
 

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Appendix 1

THE SCHOOL BUILDING CONSULTANT’S ROLE

1. WORKING RELATIONSHIP WITH SCHOOL
The consultant will be engaged with the school, not just for a specific project, but remain continuously involved in all matters relating to the maintenance, financial management, improvement and development of school buildings.

They will provide necessary advice on all the complex matters relating to building work at a voluntary aided school, in particular the use of the various funding streams, financial liabilities, statutory obligations, relationships with the LA, DCSF etc.

Schools are advised to invite a representative of the consultants to the Building Sub-Committee.

Other professional disciplines might be required to implement any identified building project, e.g. quantity surveyors, structural engineers, electrical engineers, mechanical engineers, planning supervisors etc., but the school’s consultant will be the sole employed professional. They will not receive any other fee, unless agreed by the DBE, other than that relating to specific building projects receiving DCSF’ funding. The level of fee then due will be that deemed acceptable by the DCSF as being relevant for the type and nature of the project and must be totally grant-aided.

2. DEVELOPMENT PLANNING/BIDDING
The most important role of the consultant will be assisting in the building development. This is not a ‘one-off’ exercise but will develop and change as does the school’s needs.

Any shortfall of accommodation relative to the DCSF’ space and capacity standards or of the existing accommodation, furniture and equipment will be identified. The findings identified in the Asset Management Plan will be included in this appraisal, although the consultant will be expected initially to verify the findings of that plan.

Any shortfalls and shortcomings will form the brief to the consultants for the development plan. The onus will be on them, aided by the DBE Technical Advisors to provide an ‘achievable’ solution in terms of being able to find a match with available funds and not produce a grandiose scheme which, whilst addressing every need of the school, could never be funded.

Before arriving at a final solution they will be expected to carry out any feasibility studies and costings required by the school in order for them to make an informed decision.

The consultants and school will be charged with presenting the final solution to DBE officers for approval. When approved, the plan will form the basis of all future bids required to be submitted to the DBE for onward transmission to the LA and DCSF (if not DFC-only projects).
 

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3. GENERAL GUIDANCE
The consultants, in their continuing relationship with the schools, will be responsible for providing the following:

Helpline
The consultant will provide a daytime helpline for the school on all matters relating to the maintenance, financial management, improvement and development of the school building. The consultant is not expected to know the answer to every query but it will be their responsibility to find an answer, either through the DBE Technical Advisors, or any other available source.

Monitoring DCSF Websites
Monitoring of DCSF building websites for any new initiatives, new procedures, request for bids, request for statistical returns, will also come within the remit of the consultant. They will be given the joint responsibility with the school for arranging the necessary responses to any of these matters, so assisting the school in these tasks. This shared responsibility is particularly important when responses or returns are required during school holidays.

Other Roles
They will be expected to organise the carrying out, by other specialist consultants if necessary, of the following:
1. Safety and risk management
2. Energy management
3. Asbestos surveys
4. Life cycle costings
5. Option appraisals
6. Advice on fire damage and insurance
7. Other legislation relating to public buildings

The consultant will also check that the following have been carried out and, if a school has purchased the Total Property Management scheme, may also be involved in:
1. Health and Safety audit
2. Consultation with Fire Officer
3. Statutory obligations relative to the testing of Mechanical, Electrical and water supply systems
4. Legionella screening

The above is not an exhaustive list but will give schools an indication of the consultant’s responsibility.
 

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Appendix 1a

DBE ROLE

1. CONSULTANTS’ PANEL
The DBE will maintain a Consultant Group, comprising Architects and Surveyors, with all the relevant skills and expertise required for the complex building and funding procedures for VA Schools.

They will also recommend Architects/Surveyors to schools when requested, either to replace existing consultants or provide a service not yet in place. This selection will be dictated by the particular type and specific needs of the school.

The Diocesan Technical Advisors will be constantly reviewing the performance and suitability of the consultants, ensuring that at all times the required standards are maintained. If adjustments are required to the numbers in the Panel, either up or down, then the Advisors will ensure that the new consultants have the required expertise.

2. DEVELOPMENT AND PLANNING
The DBE, together with its Technical Advisors, will provide assistance to each school in initiating the proposed development planning process.

They will also provide an overview of the advice being given by the Consultants, particularly in respect of the ‘achievability’ of the design solutions and the ‘matching’ of the solutions to the available funds, whether they be LCVAP, DFC, etc. Compliance with DCSF’ criteria - both space standards and costings - will also be monitored with particular emphasis on achieving ‘Best Value’ when practicable.

The DBE and its Advisors will be at the centre of the DCSF’ bidding cycle, greatly assisted by the Development Planning process. The development plans will enable the present and future needs of the school to be readily identified and the subsequent bidding exercise greatly simplified.

The DBE will maintain its role of collating bids from the schools and processing the same through the various LAs.

3. PROJECT BRIEFING AND MONITORING
Building projects (other than small DFC projects) will commence with a DBE-led briefing meeting. The Diocesan Technical Advisors with DBE officers will examine each project presented by a school’s consultant to ensure the project is appropriate and provides value for money and that the bid is in an appropriate form. Projects will be monitored and support provided when needed.

4. LEGAL ADVICE
The DBE will provide all necessary information and advice on legal matters, e.g. Publication of Statutory Notices, land issues - both acquisition and disposal - and generally on all matters of Education Law relating to school buildings and land.
 

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5. DFC
The DBE will manage the DFC funds for each school and more information is given in Appendix 6.

6. MANAGING CASHFLOW
For every approved project, the DBE will pay all invoices and claim grant on behalf of the governors (or use DFC as appropriate). The governors’ 10% contribution should be paid as soon as possible as this enables the money to be used on other projects.

7. LOANS AND GRANTS
If governors are unable to finance the 10% contribution immediately, they should consult DBE officers before the project is approved. Loans are available at a low rate of interest, but must be approved by the DBE prior to the commencement of the project.

Occasionally the DBE are able to make grants, but the number is very limited and each case is considered on its merits.

8. HELPLINE
DBE officers are always ready to offer assistance on building and associated matters.

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Appendix 2

INFORMATION FOR CONSULTANTS

ALL FORMS MUST BE SENT TO THE DBE OFFICE FOR FORWARDING
The notes below indicate the number of stages which must be successfully negotiated to complete a project:

• Schools no longer have exemption from the Building Regulations and are subject to normal building control procedures. See Appendix 2(a).

• It may be necessary to appoint a Planning Supervisor to comply with CDM regulations. See Appendix 2(b).

Points to be remembered

• 28 DAYS MUST BE ALLOWED IN ANY CONTRACT FOR PAYMENT.

• A representative of the DBE or Governors (not a County or Borough Councillor) must be present at any Tender openings with contract sums in excess of £20,000.

• Bottom line costs must include fees and VAT and must be adhered to or DBE officers must be consulted.

• The school’s buildings insurers should be notified whenever any building work is undertaken. Additional insurance is required for any work with total cost over £100,000 (including fees and VAT) if the school insures through EIG, but this may vary for other insurers. This is grant aidable. The invoice for payment should be forwarded to the DBE together with Form APGC.TA. The premium must be included on Form APGC.FC.

• The LA is responsible for the playing fields and any buildings on them.

• All contracts must indicate a SIX MONTHS’ DEFECTS PERIOD unless a different period is agreed with DBE officers.

• Within two days of the invoice or certificate date all interim certificates and fee notes must be sent directly to the DBE and not to the governors. This is to allow maximum time for claiming grants prior to payment of contractors and fees.

• All interim certificates must be accompanied by Form APGC.TA correctly completed. The figures on the certificates and APGC.TA form must agree to the penny and have the correct funding streams (DCSF will not correct mistakes).

• All fee notes must be accompanied by Form APGC.TA correctly completed. The figures on the fee notes and APGC.TA form must agree to the penny and have the correct funding streams (DCSF will not correct mistakes).

• Grants cannot be processed and invoices paid unless these procedures are adhered to.

The DBE office must be consulted in advance about the date of the handover meeting.
 

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SUBMISSION OF FORMS

For Category 2 Work:

Capital projects with a total value of building work up to £499,999 (excluding fees and VAT) for primary schools or £999,999 (excluding fees and VAT) for secondary schools

PROJECTS FUNDED ENTIRELY FROM DFC

• To obtain approval for DFC only projects Form DFC/Approval (which can be downloaded from www.chester.anglican.org/schools) should be submitted to the DBE office with supporting documentation.

• There must be adequate funds remaining in their DFC allocation. Requests to bring forward money from a future year should be made on Form DFC/Spend which can be downloaded from www.chester.anglican.org/schools.

• Projects will not be approved unless submitted by the school’s consultant (and will be subject to the payment of fees) and certified by the governing body unless they are ICT projects where there is NO structural work when the form may be completed without reference to the consultant (See Appendix 6).

• Consultants (or headteachers in the case of ICT only projects) will be notified when a project is approved to proceed and at this time will receive Form DFC/Final which will include a project number.

• Once approval is received from the DBE, the project may commence.

• Invoices and fee notes should be sent to the DBE office for payment.

• If costs are less than projected on Form DFC/Approval, this form must be resubmitted with a revised section 4.

• If costs are more than projected on Form DFC/Approval, a new submission must be made.

• When the project is completed, Form DFC/Final must be completed and returned to the DBE office.
   

OTHER PROJECTS
ALL FORMS MUST BE SENT TO THE DBE OFFICE FOR FORWARDING
When consultants are notified by the DBE that a bid is successful in gaining an allocation, they should:

• Obtain three competitive tenders for the work.
  If this is not practical then this should be discussed with DBE officers and explained in the tender report.
   

• Forward to the DBE the original and two copies of the following:
  Form VA/Approval. Use the form which can be downloaded from the DBE website, www.chester.anglican.org/schools, which includes DBE details in section 16.
  
  Do not complete the name of LA recipient or the date when copies were forwarded to the LA.
  
  Do not tick the boxes in section 17 referring to proposed building plan, Sketch of the school building highlighting proposed work (these are only needed by the LA for updating the AMP) or priced schedule of work or cost estimate; elemental cost breakdown (these are only required if DCSF request them)
  
  Copies of 3 Competitive Tenders.
  
  Tender Report
  
  Proposed building plan (if there is a change to the gross area of teaching or non-teaching spaces) – this is needed by the LA
  
  Sketch of the school building highlighting proposed work – this is needed by the LA
   

• Forward to the DBE the original only of the following:
  Fully completed VADBE/Approval which can be downloaded from www.chester.anglican.org/schools
  
  Letter confirming the appropriate level of asbestos survey has been carried out (See Appendix 2(c))

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• Do not send:
  Priced schedule of work or cost estimate; elemental cost breakdown
   

• Obtain the written approval of the DBE
   

• Ensure the DCSF’ approval is obtained prior to work commencing. This will be notified by DBE officers.
  Once the DCSF has approved a project it should be undertaken as soon as possible. All work must be completed in accordance with the cash flow prediction on form VA/Approval.
   

Insurance
The school’s buildings insurers should be notified whenever any building work is undertaken. Please see Appendix 5.

Communication with the LA and DCSF
All communication with the DCSF and LAs is undertaken by DBE officers, unless they request a consultant to make direct contact. The DBE forward copies of Form VA/Approval and all other documentation to the LA and DCSF.

Contracts and payments
Contracts must be signed by an authorised representative of the governing body and the governors must be provided with a copy contract.

All contracts must specify a 28-day payment period. Failure to meet this condition may result in governors being liable for interest charges on the outstanding grant.

When DBE officers notify DCSF’ approval, they will send a partially completed Form APGC.TA and a partially completed Form APGC.FC. These are for the consultant to copy and use.

Once the work is underway, consultant’s interim certificates and invoices together with a completed but unsigned copy of Form APGC.TA should be sent direct to the DBE office to avoid delay in grant payment. These must be with the DBE within two days of the valuation. Care must be taken to use the correct funding streams as the DCSF will not make amendments.

Fee notes together with a copy of the completed but unsigned Form APGC.TA should be sent direct to the DBE office for payment. These must be with the DBE within two days of issue. Care must be taken to use the correct funding streams as the DCSF will not make amendments.

The grant from the DCSF is then claimed by the DBE on governors’ behalf.

Simultaneously to the release of the final certificate, the consultant should complete Form APGC.FC in accordance with the instructions below and return it to the DBE office for submission to the LA and DCSF.

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The following sections should be completed:
Section 1 (if not already completed – leave “claim code” blank);
Section 2 (only down to and including “Net cost available for grant aid”)
Section 3 complete column 1 (if not already completed) and column 4 (Total Claim)
Section 4 should already show the DBE details. If not, check with the DBE office.
Section 6 Box 2 should already show the DBE officer’s details. If not, check with the DBE office.
Section 6 Box 4 if the project cost is more than £10,000

The following sections should not be completed:
Section 5
Section 6 Boxes 1 and 3
Section 6 Box 4 if the project cost is less than £10,000

The fully completed form should then be returned to the DBE with all necessary documentation.
 

For Category 3 Work:

Capital projects with a total value of building work of £500,000 (excluding fees and VAT) and above for primary schools or £1,000,000 (excluding fees and VAT) and above for secondary schools

These notes are to be used when consultants are notified by the DBE that a detailed bid is to be made to the DCSF.
ALL FORMS MUST BE SENT TO THE DBE OFFICE FOR FORWARDING

Note
Supporting information attached to the VA/Approval form should be worked up only to RIBA Work Stage D: a Scheme Design and Cost Estimate, equivalent to the level of detail expected at Planning Application stage. Proposals must not be developed up to construction tender stage.

Consultants should forward to the DBE a letter confirming the appropriate level of asbestos survey has been carried out together with the original and two copies of the following (further information is in Appendix 2(c)):

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DCSF look mainly, but not exclusively, at fitness for purpose, value for money, and design quality. Please see Appendices 2(a) to (e) for relevant information. Applications need to include sufficient supporting information, to demonstrate that these are appropriate to the proposal. The following should be included:

• Text Information
  Form VA/Approval – Use the form which can be downloaded from the DBE website, www.chester.anglican.org/schools, which includes DBE details in section 16.
  
  Do not complete the name of LA recipient or the date when copies were forwarded to the LA.
  
  Covering letter - listing enclosures, including all drawing numbers.
  
  Design brief for the proposed works
  
  Statement of proposals - a short ‘statement of proposals,’ including details of the development plan for all building works for current and future proposals and phased development. Also, if appropriate an option appraisal to summarise other options which have been considered and the reasons for discounting them.
  
  Curriculum analysis (secondary schools only and where there are changes to the teaching areas) - clearly identifying shortfalls and/or surplus accommodation against curriculum need.
  
  Relevant extracts from the Asset Management Plan (AMP) - (see ‘additional aspects’ section below).
  
  Key issues - details of any key issues affecting the site development e.g. Listed buildings/conservation areas, tree preservation orders, site abnormals (clearly identified in order to justify costs), etc.
  
  Exploratory works - reports i.e. trial borings, opening up of existing, asbestos survey etc.

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• Drawings
  The following are usually the minimum recommended (with the exception of some smaller projects), and should be drawn to scale:
  
  Site plan – for the whole school site, illustrating access for vehicles, pedestrians, and contractor’s compound area if appropriate as well as playing fields (both new and existing to remain), proposed landscaping and adjoining land use. For new buildings and extensions, floor levels and site levels around the existing building should be shown, in the vicinity of the new work. The plans should also show access arrangements for the disabled, from parking/drop off, through to building access, including any steps and ramps.
  
  Plans of existing school – a whole school plan, showing all floor levels, with room names and floor areas, stairs and changes of level, toilets, with numbers of sanitary fittings shown, and means of escape routes. It is essential that the entire school is shown, so that the relationship between the proposal and the whole school can be assessed. Photographs may also be helpful.
  
  Plans of proposed building – drawn to an appropriate scale. These need show only the area affected by the proposal, but should be clearly located in the context of the whole school. The plans should be sufficient to show means of access and escape where affected, and also include facilities for and access by people with disabilities.
  
  Phasing plan – for projects that will be developed in stages, a key plan indicating the work to be done in each phase. This may include phases for future applications or bids and should be linked to the ‘statement of proposals’.
  
  Development plan – To demonstrate that the proposal is an integral part of the School’s future development strategy, and not an isolated scheme. This need not be in great detail, but should indicate that it has been considered.
  
  Building elevations – for proposed new buildings, extensions or adaptations where existing appearance or use is affected. These should include enough of the existing buildings, to illustrate the context. Building sections may also be appropriate, if they help to illustrate unusual room heights, level changes or junctions, etc.
  
  Furniture and equipment plans - fixed furniture layouts for specialist spaces, e.g. laboratories, workshops etc. Where the space between benches or equipment, location of fume cupboards, etc. is critical, dimensions should be shown to ensure health and safety space requirements are being met.
   

• Cost Information
  Elemental Cost Plan – A breakdown of the new-build cost estimate as submitted.
  
  Other costs - A breakdown of other estimated costs included in VA/Approval section 11, i.e. adaptations, refurbishment, external works, temporary accommodation.
  
  Abnormals – A description, with estimated costs, of any abnormal factors giving rise to higher-than-expected costs, e.g. asbestos removal, site stabilisation, etc.

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SUCCESSFUL BIDS
Successful projects are given approval to proceed to tender and approval to claim grant for professional fees and VAT up to 7.5% of the total governing body’s expenditure.
 

For LCVAP bids, fee notes together with the completed but unsigned form APGC.ATP should be sent direct to the DBE office to avoid delay in grant payment. Care must be taken to use the correct funding streams as the DCSF will not make amendments.
 

For TCF bids, fee notes together with the completed but unsigned form APGC.PDA should be sent direct to the DBE office to avoid delay in grant payment. Care must be taken to use the correct funding streams as the DCSF will not make amendments.
 

The grant from the DCSF is then claimed by the DBE on governors’ behalf.

Going to tender
Consultants should seek tenders according to the following criteria:

• Follow the code of procedure for single stage selective tendering, unless prior authorisation has been given for an alternative method.

• You must get at least 3 competitive Tenders. If this is not practical then you should discuss this with DBE officers and explain why in the Tender Report.

• Tenders must be accompanied by a detailed Tender Report.

• The Tenders must be based on the same scope of work and design solution as were approved.

• The estimate should be updated to the tender date using published indices published by the Department for Communities and Local Government.

• The Tender Report should identify any alterations which have been necessary.

• Tenders for projects under 12 months duration must be fixed price.

• The gross cost should not breach any previously set cash limit or allocation.

• The division of liabilities between the governors and LA must not have changed.

• The total cost of provisional sums should not exceed 15% of the tender value. For projects with a tender value of £250,000 and over this reduces to 10%.

• Details of all professional fees must be given as percentages. They must not be different from those already approved.

• The Gross Cost should not breach any previously set cash limit or allocation.
   

IF THE TENDER MEETS THE CRITERIA
If the best value tender satisfies all the criteria work can commence.
‘Best value’ does not necessarily mean the cheapest tender. If there is a good reason for accepting one which is not the cheapest then you should indicate, in the tender report, why this is the case.

The consultant should:

• Forward to the DBE the original and two copies of the following:
  The Tenders
  
  A completed Tender Report Certificate (Form VA/TRC) certifying the work is going ahead as agreed
  
  A Tender Report
  
  A Statement of Financial liabilities
   

• Forward to the DBE the original only of Form VADBE/Approval

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Insurance
The school’s buildings insurers should be notified whenever any building work is undertaken. Please see Appendix 5.

Communication with the LA and DCSF
All communication with the DCSF and LAs is undertaken by DBE officers, unless they request a consultant to make direct contact. The DBE forwards all forms and other documentation to the LA and DCSF.

Contracts and payments
Contracts must be signed by an authorised representative of the governing body and the governors must be provided with a copy contract.

All contracts must specify a 28-day payment period. Failure to meet this condition may result in governors being liable for interest charges on the outstanding grant.

DBE officers will send a partially completed Form APGC.TA and a partially completed Form APGC.FC. These are for the consultant to copy and use.

Once the work is underway, consultant’s interim certificates and invoices together with a completed but unsigned copy of Form APGC.TA should be sent direct to the DBE office to avoid delay in grant payment. These must be with the DBE within two days of the valuation. Care must be taken to use the correct funding streams as the DCSF will not make amendments.

Fee notes together with a copy of the completed but unsigned Form APGC.TA should be sent direct to the DBE office for payment. These must be with the DBE within two days of issue. Care must be taken to use the correct funding streams as the DCSF will not make amendments.

The grant from the DCSF is then claimed by the DBE on governors’ behalf.

Simultaneously to the release of the final certificate, the consultant should complete Form APGC.FC in accordance with the instructions below and return it to the DBE office for submission to the LA and DCSF.

The following sections should be completed:
Section 1 (if not already completed – leave “claim code” blank);
Section 2 (only down to and including “Net cost available for grant aid”)
Section 3 complete column 1 (if not already completed) and column 4 (Total Claim)
Section 4 should already show the DBE details. If not, check with the DBE office.
Section 6 Box 2 should already show the DBE officer’s details. If not, check with the DBE office.
Section 6 Box 4

The following sections should not be completed:
Section 5
Section 6 Boxes 1 and 3

The fully completed form should then be returned to the DBE with all necessary documentation.

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ADDITIONAL COSTS
Consultants must keep the governing body fully informed of any additional costs and obtain their approval for any such costs.

• Should genuine unforeseen additional costs arise after contracts have been signed and a tender report certificate provided, DCSF normally expect these to be funded either from LCVAP or DFC funds.

• Where final costs exceed tender costs, an application for additional costs can be made, but again any additional funding needs to be identified locally before we will consider an application. Before submitting an application for additional costs, contingency sums should be used and savings sought from within the contract works. This will need to be demonstrated.

• Forward to the DBE the original and two copies of the following:
  Form VA/AC or VA/Approval (as appropriate) and supporting documentation.

• Forward to the DBE the original only of:
  A new Form VADBE/Approval which can be downloaded from www.chester.anglican.org/schools.

• Applications may be subject to professional scrutiny.
   

IF TENDER DOES NOT MEET CRITERIA
If all the Tenders are outside the criteria,
The consultant should:

• Forward to the DBE the original and two copies of the following:
  A new Form VA/Approval requesting “Approval to change ATP” with the revised costings and details of any changes to the plans and specifications. If the revisions affect the LA’s costs these need to be agreed before submission.

• Forward to the DBE the original only of:
  A new Form VADBE/Approval which can be downloaded from www.chester.anglican.org/schools.
   

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Appendix 2(a)

STATUTORY AND BEST PRACTICE CRITERIA

Compliance with the following criteria should be considered in all project submissions:
Statutory Requirements
Planning Consent – where applicable. The consent need not be in place, but preliminary discussions should have been held with the planning authority. Listed Building or Conservation Area Consent may also apply to some proposals.

DCSF Constructional Standards 1997 – supplement or provide additional non-statutory guidance to the Building Regulations Approved Documents. The guidance was amended in July 2001 following ending of the exemption from the Building Regulations. The latest version of the DCSF Constructional Standards – Guidance Note Ref: DCSF/0142/2001 Issue 7/2001 can be seen at www.teachernet.gov.uk/sbconstand.

Building Regulations 2000 (SI 2000/2531) – a full submission for approval to your Local Authority building control department will be required, in due course. Guidance is given in Approved Documents A–N. Particular attention is drawn to Part B (Fire Safety) and Part M (Access and Facilities for Disabled People), which may affect the general arrangement of the proposal.

The new Building Regulations AD F and AD L published in 2006 which came into force in April 2006 now refer to Building Bulletin 101 Ventilation of School Buildings for Part F compliance for schools and for summertime overheating compliance to Part L. Therefore reference to BB87 in the Constructional Standards is no longer relevant for Parts F and L. However, the guidance in the May 2003 edition of BB87 (www.teachernet.gov.uk/energy) on water supplies and daylight levels continues to be relevant. The new Part L requirements eg, for energy performance calculations now supersede the requirements in BB87 in all respects.

BB101 was published electronically in June 2006 on www.teachernet.gov.uk/iaq. The website also contains the ClassCool and ClassVent spreadsheet tools that can be used to show compliance with BB101 regarding ventilation opening sizes and the summertime overheating criteria.

The fire safety aspects of the latest version of our Constructional Standards, which came into effect in November 1997, and as amended in guidance issued in July 2001, will generally be satisfied if the building is designed in accordance with the 2000 Edition of Approved Document B (Fire Safety). This Document classifies purpose groups for different building uses. Schools fall within purpose group 5, “Assembly and Recreation.” When the DCLG publish the revised Part B expected in December 2006 to come into force in April 2007 this will refer to Building Bulletin 100 as the compliance document for schools. BB100 Designing and managing the risk of fire in schools is due to be published in December 2006.

AD M (2004 edition) contains the following reference to the Constructional Standards:
Certain school-specific standards relating to Parts K and M contained in the DCSF 1997 Constructional Standards as described in circular DCSF/0142/2001 are subsumed in this revision to AD M (see 1.33 – Note re: (l) and (m), 1.36, 1.37 (b) and 3.51 – Note re: (c), (d) and refuges).

Part M should therefore be read in conjunction with the clauses 11 and 12 of the School Constructional Standards which give slightly more specific guidance than is contained in the AD M.

The School Constructional Standards relating to all the Building Regulations except for Parts K and M have therefore been superseded by the relevant ADs and the compliance documents quoted within them including DCSF Building Bulletins.

Part E of the Building Regulations and Requirement E4, Acoustic Conditions in Schools came into effect on 1 July 2003 and will be met if building works at schools are designed to meet the requirements of BB93 Acoustic Design of Schools see www.teachernet.gov.uk/acoustics.

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Consultants must:

• obtain approval by a building control body

• arrange for the payment of any necessary fee for approval by a building control body in addition to any fee due to the planning authority

• ensure they allow sufficient time in the project plan to secure compliance checks by a building control body.

The Construction (Design & Management) Regulations 1994 (CDM) – The CDM regulations place statutory duties on clients as well as designers and contractors, with regard to health and safety issues related to premises projects. These Regulations are in the process of being amended, and the revised regulations are expected to come into force during 2007.

The Education (School Premises) Regulations 1999 - this gives statutory requirements in issues such as the number of sanitary fittings required for pupils, medical and staff accommodation, and areas for team game playing fields, etc.

Disability Discrimination Act 1995 (DDA) – consideration of DDA requirements and how these have been addressed, particularly if there is a material change of use of the existing building. See DCSF circular 20/99.

Disability Discrimination Act 1995 Parts 3 & 4: as amended by The Special Education Needs & Disability Act 2001. This amends the DDA, lifting the exemption for education for Part 3 and provides a new Part 4, Education, including schools from September 2002. This legislation places a planning duty on all LAs and schools to plan to increase, over time, the accessibility of schools for pupils with disabilities and to allocate resources to implement these plans. The plan includes a section on improving access to the physical environment of the school. It would be advantageous, wherever practical, to include any such work within a new building contract. See DCSF guidance reference LEA/0168/2002.

The Workplace (Health, Safety & Welfare) Regulations 1992 - gives guidance in its Approved Code of Practice on the toilet provision for staff. This is in addition to the statutory requirements of The Education (School Premises) Regulations 1999.

Good Practice Guidance
The Department has produced a number of Building Bulletins and Design Guides for schools. Information on all guides can be viewed at or obtained through www.DCSF.gov.uk/schoolbuildings. Several Bulletins can be downloaded. Paper copies can be ordered on-line, or bought from the Office of Public Sector Information (formerly the Stationery Office). The key ones, which will apply to virtually all proposals, include:

Building Bulletin 99 – Briefing Framework for Primary School Projects (the most recent edition can be viewed on www.teachernet.gov.uk).

Building Bulletin 98 – Briefing Framework for Secondary School Projects (the most recent edition can be viewed on www.teachernet.gov.uk).

Building Bulletin 87 – Guidelines for Environmental Design in Schools (supplementary to Building Regulations, covering, lighting, heating and ventilation, and also energy rating). The most recent version of this can be viewed on www.teachernet.gov.uk/energy 

Building Bulletin 91 – Access for Disabled People to School Buildings

Building Bulletin 93 – Acoustic Design of Schools. A comprehensive guide for architects and clients which meets the requirements of Regulation E4 of Approved Document E of the Building Regulations. This can be viewed on www.teachernet.gov.uk/acoustics.

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Value For Money
Value for money (VFM) should be achieved without compromising design quality. VFM is not necessarily the cheapest option, but one that gives the most suitable and appropriate accommodation within DCSF cost guidelines. Best value and life cycle cost should be taken into account.

Professional Services - VFM applies also to the services of professional consultants, without compromising professional standards.

Taxation – the local VAT office can advise on whether the project, or part of it, can be zero-rated. For some projects, the design itself may have an affect on whether or not VAT is applicable.

Procurement routes – reference should be made to the recommendations for radical change set out in Sir John Egan’s “Rethinking Construction” report before deciding on which is the most appropriate procurement route. Details of the alternatives considered should be submitted with the application. The report can be found on www.constructingexcellence.org.uk/pdf/rethinking%20construction/rethinking_construction_report.pdf.

Option appraisal – is an essential tool to help those managing capital programmes and projects. The DCSF guidance document “Finding the Right Solution” can be found on www.teachernet.gov.uk/management/fallingschoolrolls/capitalfinance/buildings/.

Revenue costs – as part of the overall design strategy, consideration should be given to operating costs and maintenance.

Spend patterns – consideration should be given to spend patterns, which are related to a reasonable construction period.

Additional aspects
LAs’ AMPs are now central to capital appraisals for school expenditure and for establishing priorities for works to which the basis of submissions are expected to relate.

To produce a cohesive design and construction approach, projects should be submitted as part of the Premises Development Plan, with prioritised improvements informed by the AMP and pupil number projections.

Architectural quality should not be ignored in the pursuit of the cheapest option. Fitness for purpose and the quality of the learning and working environment are both important aspects, which should be considered alongside the provision of facilities that are technically adequate.

Sustainable, ecological and imaginative design should be applied, wherever possible (see below).

Large projects in scope and costs should be are discussed with NPS (Jennifer Coldrick, Tel. 01603-706115, Fax 01603-7067001 email: jenny.coldrick@nps.co.uk) in the early stages of design development. Any changes required at this early stage will avoid delays in approval later, help maintain the programme and avoid abortive fees. If early input is required, enquiries may be made to the DCSF VA Team.

The proposed use of temporary buildings (e.g. mobile classrooms) to provide for a permanent need is not acceptable. Temporary buildings will only be appropriate to meet temporary need, such as emergency accommodation following a fire or temporary decanting for health & safety reasons. If such buildings are included in the application, advice from the DCSF’ VA Capital Team should be obtained prior to submitting the application.

For design consultants’ professional fees and expenses, a clear breakdown by each professional discipline is required on the VA/Approval, as well as insurance and statutory fees. The total value of consultants’ fees is usually limited to 15% of building cost.

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Appendix 2(b)

THE CONSTRUCTION (DESIGN AND MANAGEMENT) REGULATIONS 1994 (CDM)

The CDM Regulations place statutory duties on clients, planning supervisors, designers and contractors to plan, co-ordinate and manage health and safety throughout all stages of a construction project.

CDM Regulations apply if a project will:

• Last longer than 30 days, or

• Involve more than 500 person days of construction work, or

• Have five or more people working on the site at any one time, or

• Involve any demolition.

In such cases the project is notifiable to the Health and Safety Executive.

The Approved Code of Practice, (ACoP) to the CDM Regulations places an emphasis on managing health and safety throughout the life of a project, and highlights the need for everyone to play their part in reducing health and safety risks to construction workers. It also contains practical advice on identifying and reducing hazards. Further information is available from the Health & Safety Executive.

Statutory requirements placed on the governing body
The governing body is the ‘client’ referred to in the regulations. They can appoint an agent to act as client on their behalf, but must satisfy themselves the agent is competent to perform the duties necessary. The agent will normally be the school’s building consultant. They must sign a declaration stating that they are acting as client for the school and send it to the Health and Safety Executive.

The client’s key duties are to:

• appoint a planning supervisor and a principal contractor in respect of each project. The client must be reasonably satisfied they have the competence to perform their duties

• ensure that the planning supervisor, the designer and the contractor have allocated adequate resources for health and safety to enable them to perform their respective functions satisfactorily

• provide the planning supervisor with information relevant to health and safety on the project

• ensure construction work does not commence until a Health and Safety Plan has been prepared

• ensure the health and safety file is available for inspection, after the project is completed

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Appendix 2(c)

ASBESTOS CHECKS

Under the Control of Asbestos at Work Regulations 2002 (CAWR), governing bodies are required to ensure the risk from asbestos is managed by:

• finding out if there is asbestos in the premises, its amount and what condition it is in;

• presuming materials contain asbestos, unless they have strong evidence that they do not, such as bricks, glass, steel, timber etc.;

• making and keeping up to date a record of the location and condition of the asbestos containing materials, (ACMs) or presumed ACMs in their premises;

• assessing the risk from the material;

• preparing a plan that sets out in detail how they are going to manage the risk from this material;

• taking the steps needed to put their plan into action;

• reviewing and monitoring their plan and the arrangements made to put it in place; and

• providing information on the location and condition of the material to anyone who is liable to work on or disturb it.

It is essential that schools have systems to manage the asbestos materials in their premises. A “type 2” survey must have been carried out in every school by May 2004, and the DBE is unable to agree to any work being carried out unless we have been informed that this survey has been undertaken. LAs may have assisted schools in providing surveys and developing systems. A fuller survey may be needed before certain work and again approval for these projects cannot be given unless your consultants certify this is completed.

Where asbestos treatment or removal is a project or part of a bigger project, costs can be capitalised. There is no additional specific grant. Any work resulting from the survey will need to be funded from devolved formula capital or the LCVAP. Only then can the costs of the survey be funded from these programmes. However, general surveys or reviews of asbestos should be funded from the school’s fair funding budget.

Consultants must ensure the Asbestos Register is kept up-to-date.

Whenever work is undertaken involving the removal of asbestos, the LA must be informed.

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Appendix 2(d)

SUSTAINABLE SCHOOL BUILDINGS

Goals, standards and targets are set by the Government for promoting sustainable education buildings through:

• building regulations and planning law

• Department for Communities and Local Government (DCLG)

• Department for Environment, Food and Rural Affairs (DEFRA)

• the Health and Safety Executive (HSE)

• the European Union (EU) and international summits

• DCSF’ building bulletins

• requiring, as a condition of funding, new school buildings to aim for a ‘very good’ or ‘excellent’ rating in the Building Research Establishment Environmental Assessment Methodology (BREEAM)

• promoting good practice through, for example, guidance, exemplar designs, case studies and demonstration projects, such as the classrooms of the future.

Building Research Establishment’s Environmental Assessment Methodology
All major new build and refurbishment projects valued at over £500,000 for primary schools and £2 million for secondary schools and involving rebuilding or complete refurbishment of more than 10% of the floor area of a school will be subject to a schools’ BREEAM assessment. DCSF expect all these schemes to achieve at least a very good rating using the BREEAM schools methodology.

Smaller schemes may also be suitable for formal BREEAM assessment and designers should, as far as practicable, apply the same standards to all projects.

More information is available from the www.breeam.org/schools.html.
 

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Appendix 2(e)

DESIGN QUALITY INDICATOR (DQI) FOR SCHOOLS

Design Quality Indicator (DQI) for Schools is a tool which provides a framework for the assessment of school design. DCSF recommend that it should be used on all school building projects with an estimated contract value of £1m or over. It is used to assist teachers, parents, school governors, pupils, people from the community, diocese/local authority clients and building professionals achieve design excellence in new or refurbished school buildings and grounds.

In the initial stage it is used to help a group of key stakeholders to form a consensus about priorities and ambitions for the design brief. During the design phase, DQI for Schools can be used by the same stakeholder group to assess how well the plans for building work meet the objectives they are currently setting. Once the building work is completed and the school is in use, the DQI for Schools tool can be used to assess how well it functions in relation to the initial and revised ambitions of the stakeholder group. DQI for Schools also provides feedback for benchmarking and for the briefing of future projects.

DQI for Schools was developed in partnership by Construction Industry Council (CIC) and DCSF and can be accessed at: www.dqi.org.uk/schools.

Appendix 3

CAPITAL EXPENDITURE

The definition of capital expenditure is expenditure which falls to be capitalised in accordance with proper accounting practices, or is prescribed by the Secretary of State by regulation (who may similarly class other expenditure as not being capital expenditure)

“Proper accounting practices” refer to practices which are regarded as proper accounting practices by appropriate bodies.

No work costing less than £2,000 can be considered as capital work.

Non-capital expenditure is termed “revenue” expenditure.

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Examples

• Patching or mending small areas of a roof would normally be considered as revenue work and be paid from the Fair Funding budget, because this would be regarded as normal repair and maintenance work. If the whole roof, or a substantial part of a large roof, needed to be replaced, then this would normally be regarded as a capital item.

• If a boiler unexpectedly broke down, and required a new part which cost £1,800. This could have been regarded as either revenue (because it is repair and maintenance) or capital. The cost, however, dictates that it must be revenue because it is less than £2,000.

• Small repairs to the playground (filling individual potholes etc.) would normally be revenue work and be paid from the Fair Funding budget, because this would be regarded as normal repair and maintenance work. If the whole of the playground needed to be resurfaced, then this would normally be regarded as a capital item.

• Painting is always considered as revenue work and should be paid from the Fair Funding budget, because this is regarded as normal repair and maintenance work. However, if the work is refurbishment or restoration, it can be considered as a capital item. Governors are advised whenever undertaking a major repainting project to consider making it a refurbishment.

• Replacing a few damaged chairs or desks would be regarded as a revenue cost because it is normal wear and tear. If, however, as part of a refurbishment of a whole classroom, all of the furniture is to be replaced then it can be included as part of the capital project.

Appendix 4

FINANCING BUILDING WORK

There are a number of ways in which governors can finance their contribution towards building work. Governors should have their own account separate from the school’s various accounts. Money can be raised in the following ways:

PROFIT FROM LETTINGS
Money made from any lettings belongs to the Governing Body. All expenses such as heating, lighting and caretaking must be reimbursed to the school’s budget, and any profit then paid into the governors’ account.

MONEY RAISING EVENTS
Many schools hold events at which money is raised in order to help finance building work. This may be particularly effective when parents can see the plans for a new scheme. Some schools ask for donations from parents or outside bodies towards building work. All Church Schools are Exempt Charities and as such are eligible for income tax refunds on money given through Gift-Aid. Further advice is available from the DBE office.

P.C.C.
Some schools are in the fortunate position where their P.C.C. supports them financially. Some arrange to give a per capita amount for each child in the school. However, in the current financial climate for the Church, this method may become increasingly difficult.

TRUSTS
Some schools are supported by local trusts that may finance building projects to some extent. Governors should always check with Charity Trustees before committing themselves to building work.
Some schools have individual trusts based on a School House that was originally provided for the use of the headteacher. Care should be taken in dealing with such property as it will probably be held on an educational trust and may need an Order of the Charity Commissioners before the assets are used for the school. These houses if sold must be sold at a full market price and if rented this must also be at a full market rental. Trustees of such property should always contact the Diocesan Director prior to any sale or letting. Legal advice is essential to prevent problems. As with all educational trusts, the DBE must be consulted about any change.

DBE LOANS
The DBE is able to offer a restricted number of loans to Governing Bodies who find themselves unable immediately to pay for building or repair work. Governors must have the prior approval of the DBE before the work is contemplated. Please contact the Diocesan Director of Education.

The loans are currently offered at a rate of 5% Simple Interest, and the repayment period will be dependent on the nature of the work.

On rare occasions, the DBE may agree to the payment of a grant to governors.

GIFT-AID
All Church School Foundations are Exempt Charities and as such can receive tax benefits through Gift-Aid. Contact the DBE office for further information.

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Appendix 5

INSURANCE

Schools insured through the Bloc policy arranged for us by Blackburn DBE with the Ecclesiastical Insurance Group (EIG) are covered for building work with a total cost (including fees and VAT) under £100,000. For other work, additional insurance is essential. For approved work, the additional premium is grant aidable.

Consultants must:

• Complete Insurance questionnaire and return to Ecclesiastical Insurance Group when VA/Approval is submitted to the DBE office. Insurance costs should be entered in section 14 of Form VA/Approval.

• The relevant section on Form VADBE/Approval (Appendix 8) should be marked.

• Notify the insurers of the dates the contractors move onto and off the site

• Submit the invoice to the DBE together with Form VA/APGC.TA. The payment will then be made in the normal manner

• Include the premium on Form APGC.FC final costings submission

• Ensure any additional insurance (including terrorism insurance) is in place before the project commences on site.

If schools are not insured through EIG, they should check with their own insurers.
 

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Appendix 6

SOURCES OF FUNDING

DEVOLVED FORMULA CAPITAL
Each year the school receives a Formula Capital allocation based on a lump sum plus an amount per pupil. This allocation shows the amount which can be spent on small scale capital work or as a contribution towards a larger project. The DCSF grant 90% of this amount and governors must provide 10% of the cost.

The money can be rolled forward for three years, but any money not spent after three years will be lost.

The DBE holds schools’ DFC on their behalf and twice a year schools receive a letter advising them of the amount that is held. If information is required at other times, please email Sandra Jones (sandra.jones@chester.anglican.org).

The grant is paid by the DCSF in two instalments. The first is paid in May and is for 40% of the year’s allocation. The second payment is paid in early July for the remaining 60%.

All schools have agreed to pool their DFC. This enables us, in approved cases, to allow schools to expend money from their allocation for the following year.

At the financial year end, a declaration is required by DCSF about DFC spending. DBE officers will undertake the administration of this. The declaration will certify that:

• the governors have spent the money on capital items

• the governors have made the statutory 10% contribution

• the governors have local planning or other approvals (such as Building Regulations)

• VAT has been paid where relevant (and has not been reclaimed from any other source)

• the trustees of the buildings have been consulted

• the school is not due to close in the next 12 months

and state how much the governors are carrying forward to the next financial year.
 

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ICT funding
DFC now includes the capital element of the ICT. How much DFC is used for either ICT or buildings and grounds is for the governors to decide. DFC can be used to support schools’ purchases of ICT infrastructure and equipment; for example, items such as desktop computers, interactive whiteboards or laptops and computer peripherals such as digital video cameras and printers. However the purchase of such items must still comply with the definition of capital. If the £2,000 lower limit on capital expenditure causes a problem, this should be discussed with DBE officers.

Leasing ICT equipment may provide better value for money, but this is revenue expenditure and DFC cannot be used. However, your LA will provide through the Schools Development Grant (SDG) a revenue element for ICT.

School Travel Plan (STP) Grant
One-off capital funding is available for schools which have authorised travel plans in place. This is to be spent on capital items which will encourage or enable more sustainable travel to school, and is included in DFC payments for schools where the school travel plan:

• meets the criteria in ‘Travelling to School – a good practice guide’

• has been authorised by the LA, as well as by the chair of governors of the school. If other local bodies such as the police or bus operators have a significant role to play, they should be signatories too, to indicate that they are willing to support the actions identified in the plan

• has been notified to the regional school travel adviser by an advised date

LCVAP (LA CO-ORDINATED VOLUNTARY AIDED PROGRAMME)
Each financial year the LA receives a per capita allocation for each pupil in aided schools in their area, together with an indication of the amounts to be received in the following year. The money can only be used for work which is the responsibility of governors in aided schools.

Form Capital/Bid is sent by the DBE to schools and consultants in January each year and can be downloaded from www.chester.anglican.org/schools. This must be returned by Easter for work which schools would like to begin in the following year. Officers of the DBE then negotiate with LA officers and officers from other dioceses (including the RC dioceses) in order to receive allocation for projects.

The bids always exceed the finance available and consequently not all bids are successful. The Asset Management Plan is used to demonstrate the priority of the work and the bid should refer to the school’s building development plan agreed with the governors and their consultant. Normally we expect schools to contribute from their DFC allocation towards these projects.

Schools are notified of the outcome of bids usually in February or March prior to the work commencing. The money must be claimed in the year it is allocated (often projects overlap two years).
 

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BASIC NEED AND TARGETED CAPITAL FUNDING (TCF) PROGRAMME
Every two years local authorities (LAs) submit bids to DCSF on behalf of aided schools for funding large scale capital work (TCF), or for capital work to meet an exceptional growth in pupil numbers (usually referred to as Basic Need). DBE officers present these bids on behalf of schools to their respective LA.

TCF bids must often be in line with specific government educational priorities.

The next bidding round will not be before 2007 for projects commencing in 2008-2009.

Basic Need is a mechanism that is available where a local authority and its schools are experiencing exceptional circumstances (e.g. very high growth in numbers or movement of pupils within a local authority area), and where the resulting need cannot be met from available capital resources.

Early discussions with DBE officers are vital for these bids.

EMERGENCY CAPITAL</