Planning and organising your estate resources
Advice on governance, budgeting, procurement and emergency planning procedures to help you manage your estate.
The estate is an important resource. It should be specifically recognised in governance arrangements.
The purpose of governance in estate management is to provide:
- strategic leadership
- robust accountability for estates issues
- oversight and assurance for educational and financial performance
It will help you make good and consistent decisions.
Further details about the core role, function and duties of governance are set out in the governance handbook for academies, multi-academy trusts and maintained schools.
Guidance for multi-academy trusts on establishing and developing their trust includes advice on:
- school governance and leadership
- helping schools improve
- financial sustainability and risk management
PFI schools
If your school is currently managed under a private finance initiative (PFI) contract that will be ending soon, you should be clear about what this means for you.
You may take on new responsibilities for managing the estate and there are actions you should take in the lead-up to expiry.
If you wish to raise any queries regarding this, contact us at private.finance@education.gov.uk.
Strategic estate management is not just an activity for property professionals. It should be:
- led by the board with support from executive leaders and school business professionals to develop understanding of estate issues
- integrated with your other business and financial planning processes
Everyone has a role to play. Recognising estates in your governance arrangements will make sure that:
- everyone is aware of their role and responsibilities
- executive leaders are responsible for the estate
- decisions reflect your visions and priorities
- there’s appropriate challenge and transparency
- property budgets are effectively managed
- property services are coordinated to achieve value for money
- the risks associated with the use and occupation of land and buildings are minimised
Without good estates governance, clear responsibilities and good communication there’s a risk that:
- there is no accountability for the estate at board or executive leader level
- property decision-making can become fragmented
- operational activities can become uncoordinated
- inefficiencies and poor investment decisions are made
Role of governing boards
The board is accountable for the performance of your organisation. As a governor or charity trustee, your role is to make sure that your organisation is being managed properly.
The board should ensure that it maintains oversight of the estate. This could be considered regularly in-depth by a relevant committee and in turn reported to the full board. You may find it helpful to designate a board member to have specific responsibility for the estate.
Your board should challenge your executive leaders to make sure they are:
- keeping the estate safe and secure for everyone
- aware of what investment is needed in the estate
- planning for longer term needs as well as the short term
- allocating resources in line with strategic priorities
- making best use of available budgets
- using land and buildings efficiently and driving value from the estate
- getting best value through procurement
- looking for opportunities to work with others to be more efficient
- prepared for an estate related incident or failure
You need to ask the right questions to help you challenge your executive leaders and drive efficiencies from the estate. You can use the top 10 estate checks for boards (PDF, 634KB) to help with this.
Your governance arrangements
Your governance arrangements should cover the whole estate management function. This should include:
- strategic functions – making sure that all decisions reflect the overall vision, priorities and financial sustainability
- operational functions - making sure that property services are coordinated to give value for money, that budgets are well managed, and risks are minimised
This applies regardless of:
- the type of your organisation
- the size of your organisation
- how many properties make up the estate
Make sure it is clear who is responsible for what at a board and executive leadership level. This should state which governance functions are retained at board level and which are delegated.
Example
A large multi-academy trust (MAT) may have both centralised and localised governance arrangements although the MAT remains accountable.
A school supported by a charitable trust (including schools with a religious character) will have governance arrangements reflecting the requirements of the trust deed.
A maintained school may have governance arrangements involving the local authority.
You should make sure there is clear separation between strategic non-executive oversight and operational executive leadership.
Some operational activities may be delegated to a local level. However, legal duties placed on a board will remain with them, even if certain functions or responsibilities are delegated. You should document all delegations, making sure they are appropriately communicated, and that accountability is clear.
Document your governance arrangements
You should document your governance arrangements. Doing this will:
- make sure everyone knows what the estate-related governance arrangements are
- set out important roles and responsibilities for strategic and operational estate management
- set out what estate specific performance measures are being used
- show how performance will be reported and who is responsible for this
- identify strategic property policies
You should make sure that your governance arrangements are referred to and reflected in your asset management plan.
Find out more about what should be in your asset management plan.
Sharing your arrangements
Good communication at all levels is essential to make sure everyone understands:
- the arrangements
- roles and responsibilities
- reporting lines
- working practices
This applies at an organisational and individual site level.
As well as the governance arrangements, you should share your school’s estate vision and strategy.
Share your asset management plan with everyone involved in, or affected by, operational estate management.
Consider how you will share:
- any changes to your arrangements or strategic documents with existing staff
- your arrangements with new staff
You may also choose to share some parts with other stakeholders. This could include:
- other schools
- potential partners
- your local community
- parents and carers
Skills and knowledge
You will need a range of skills and knowledge within the board and organisation as a whole.
Governing boards
Boards should include a range of skills, as set out in the governance handbook and competency framework.
Boards should consider their role and the skills they require as part of this to manage their estate.
Organisational capability
Managing the estate involves many strategic, operational and technical roles. If you do not already have the knowledge in your organisation to cover these roles you may consider:
- training and supporting current staff to cover routine roles
- employing external professionals
- sharing skills and resources with other schools
When engaging professional support, follow the appropriate procurement processes. Find out more about how to procure professional support.
The Institute of School Business Leadership (ISBL) professional standards for school leaders include a section on Infrastructure, which defines the skills, knowledge and attributes school leaders need to manage their estate effectively.
Good estate management supports the effective management and use of financial resources. This should include both capital and revenue expenditure, which must be managed as separate funding strands. This will inform your decision-making process.
Importance of budgeting and finance
With increasing pressures on all budgets, it’s important that you:
- understand how all your resources are used
- challenge yourself to use them more efficiently
- get value for money from the estate
Doing this will help you get the right combination of costs and benefits, not necessarily the cheapest service or product.
Thinking about the estate strategically will help you do this by:
- providing a framework to identify issues and recognise risks early
- forecasting investment need in the short, medium and longer term
- identifying capital budgeting requirements, enabling consideration alongside revenue budget planning
- helping you sequence and prioritise works to maximise outcomes
- coordinating efficient procurement of services
Responsibility for estate budgeting and finance
Accountability for financial performance sits at board level. It’s important that the budgetary process sits firmly within the strategic leadership of the board.
Budgeting and finance management is not the sole responsibility of the school business professional in their capacity as finance manager.
Budgeting for the strategic management of the estate is an integral part of the budget planning cycle. It should not be treated as a stand-alone item.
Budget management in schools can be varied and complex. The executive leader responsible for the estate should work with the school business professional to make sure the estate budget and financing issues are represented in the overall budget planning cycle.
This will draw on analysis of data, which you should present through your asset management plan.
Considerations for budgeting and finance
When agreeing the estate budgeting and finance arrangements you should consider the following areas.
Capital and revenue budgets
The operation of the estate will impact both capital and revenue budgets. Capital projects could include:
- internal alterations
- extensions or new buildings
- invest to save schemes
- improvement works to ensure the sustainability of the estate through asset change
Revenue costs are associated with the operational running of the estate, including facilities management costs.
You should know the full cost of occupying the estate. This can be a challenge if you have:
- inconsistent budget recording
- fragmented responsibilities and data recording
Understanding the financial implications of proposals as a whole supports:
- better decision-making
- delivery of best value for money
You should consider the revenue implications of any investment in the estate in the short, medium and long term.
Capital projects may have revenue implications that you need to consider in your decision making.
You should consider investing to save projects, which could reduce revenue expenditure in the future.
Example
Investing in new glazing or constructing a draught lobby could save energy costs.
Replacing an ageing roof could save ongoing and increasing maintenance costs.
You should make sure you comply with the terms and conditions of any capital funding allocations or grants.
You should be aware if there is an opportunity cost of occupying your property. This is the value tied up in your asset that you may be able to release.
Example
If your land and buildings have a high value for an alternative use, you could consider releasing that value by selling all or part of it and providing what you need in a more cost-effective way.
Prioritisation
Prioritising works is important to make sure your budget is used to deliver best value for money overall. Taking a strategic approach identifies investment needs across the whole estate. This will help you to:
- plan your budget
- avoid unexpected budget pressures
Working this way makes sure that decisions on prioritisation are made in a consistent and transparent way.
Risk management
The budgeting process and prioritisation of funding should take account of risk management.
Whilst risk cannot be completely avoided, recognition of the risks and their impact should be a factor when prioritising expenditure.
As well as financial risks (both capital and revenue related), consideration should be given to:
- risks around statutory compliance
- educational delivery
- strategic risk
- reputational risk
Option appraisal
Consideration of significant capital investment options should include appraisal on a whole life basis.
Find out more about option appraisal and whole life issues.
Determining value for money
When determining value for money from investment and the management of the estate, you should consider the:
- potential to reduce revenue expenditure by investing in the estate - this could include invest to save projects
- options to deliver savings through rationalising the estate, this could include disposing of surplus capacity, releasing costly assets or acquiring more efficient space, including the use of modular buildings - find out more about strategic reviews
- potential to generate income through the estate, this could include letting parts of the estate for occasional community use, or longer term release of surplus space - find out how tenure and land ownership could impact your ability to do this
- options to procure services differently, this could include grouping all your requirements into a single contract or using frameworks for professional services - find out more about procurement
You are likely to need to procure services to help you manage the estate. This could include procuring works, individual projects or specialist technical advice.
Importance of procurement
Efficient procurement will help make sure that you:
- get advice on the most appropriate and efficient procurement route
- get best value for money
- understand and follow procurement procedures to minimise risks of challenge
Mistakes in procurement processes can be costly and result in significant delays.
When procuring and managing works or services, you should make sure you follow robust procurement policies. You should be aware of, and adhere to, the procurement policies within your organisation.
When engaging a contractor, make sure that they:
- are in good financial health and are likely to remain so for the duration of the contract
- comply with the terms and conditions of the contract
- achieve the aims and objectives of the project - these should be defined in the scoping and specification of work and should generally be included in the contract
- comply with statutory requirements and site access issues
- deliver the completed project to schedule and within budget
- work professionally, using safe working procedures to ensure that no harm can be done to staff, pupils, contractors or visitors
- provide data in a prescribed format to help you manage the estate
Your procurement arrangements should ensure that contractor checks are proportionate to the size and duration of the contract.
Procuring specialist services
The different stages of any project will require and involve different skills. You should involve a number of people. This will include school representatives, technical advisers and, where necessary, fire officers and local authority planning officials.
Projects on a school estate can be complex, requiring the full integration of school business professionals, procurement and technical property professionals. It’s important that you understand the roles of everyone involved at the outset, making sure you procure the right skills at the right time.
Consider who will be involved with the core roles, including:
- clients (the appropriate school representative)
- client advisers
- project lead
- architect/designer
- building services engineer
- civil and structural engineer
- cost consultant
- contract administrator
- health and safety adviser
- procurement adviser
Additional input may be required to help with information management, master planning, sustainability, landscaping, planning, fire engineering, external lighting, acoustics, interior design, catering or other specialist and support roles. Even on a small project, specialists might be required. Involving specialists early in the process can deliver efficiencies throughout the project.
The section on procurement options includes advice on how to identify and procure professional services.
You may need to liaise with local authority functions in the works stages of some projects. This will include planning or building control functions.
Procurement options
When procuring goods and services for your organisation, you should consider the following.
Professional services and advice
For professional services to support estate management in schools, we recommend the NEPRO framework delivered by Bloom Procurement Services.
NEPRO helps schools and academies to buy and manage specialist professional services and consultancy from a range of suppliers. It includes 20 categories and over 340 sub-categories of spend.
This service can help you create your specification, select appropriate suppliers and manage the procurement process from invitation to tender (ITT) through to evaluation, award, contract management and supplier payment.
The framework can help you to procure professional services such as:
- asset management and delivery
- construction, design and engineering
- environment, sustainability and waste
- facilities management and catering
Other frameworks and deals
Read guidance on buying for schools to help you plan what you need to buy and get good value for a number of products and services, including:
- books
- catering
- cleaning
- electricity and gas
- IT and computer hardware
- legal services
- printing and copying devices
We have partnered with Fusion 21 to support schools with their heating requirements and renewable technology, including a range of services such as consultancy, design, servicing, maintenance and installation.
You can find other quality-checked suppliers using the find a framework tool.
You can also buy goods or services through the Crown Commercial Service.
For large construction projects with an estimated cost of over £1 million, you can access the DfE Construction Framework.
Local authority arrangements
You may have the option to use local authority procurement arrangements, regardless of your governance structure. These will include approved lists of contractors or frameworks that may have been built up over many years. These arrangements may have pre-approved:
- pricing structures
- specifications
- compliance with legal requirements and accepted industry standards
Schools with a religious character
Schools with a religious character should refer to their diocesan or equivalent procurement procedures.
Working with other organisations
You may want to consider working together with other organisations and schools. This could be in geographical clusters, reviewing your annual plans and priorities together.
Combining programmes of work can secure better value for money.
Modular methods of construction
You can procure modular buildings by accessing the modern methods of construction (MMC1) framework, which uses offsite construction to build new school blocks and buildings.
The framework is available for use by local authorities and other responsible bodies. Contact Contact.GEMS@education.gov.uk to find out more about our work on modern methods of construction and these frameworks.
Procurement processes
Documentation
You should ensure your procurement and tender documentation is comprehensive at the outset. This will be important in managing the contract. Your documentation should include:
- a detailed scope of works
- specifications
- method statements
- health and safety elements
- a programme of work
- a schedule of cost
Making payments
You may need to make staged payments for some works. The methodology for quantifying these should be set out in the procurement documentation. This may need help from qualified technical advisers or property professionals.
Sign-off process
You should consider the sign-off process as part of procurement. This will result in acceptance of the completed works. In some instances, you may need to use qualified professionals to give assurance.
Links for further information
See buying for schools: good practice advice for schools and trusts for more information.
Continuity planning
Undertaking condition surveys, inspections and regular maintenance should help you identify issues that need to be addressed, before they cause an emergency situation.
You may nevertheless face a number of scenarios that can lead to a premises-related emergency. Some of these can lead to partial or full closure of your buildings.
Your continuity plans should cover premises related emergencies, for example the relocation of pupils to alternative sites.
Guidance and practical management tools are available for emergency and continuity planning.
Dealing with emergencies
In the event of a premises related emergency, you should:
- take the necessary measures to ensure the safety and security of pupils, staff and visitors
- contact the necessary statutory bodies (for example, fire services and Health and the Safety Executive (HSE)) to ensure the measures being taken are appropriate and sufficient
- contact your organisation (including trustees of the school and the diocese) and advise them of the situation and measures being taken, and discuss support options
- contact the insurers and check insurance arrangements – some situations will be covered and can include the provision of temporary accommodation
- seek professional advice on immediate and longer term action required to repair the affected area where appropriate
Consider the legislative and procedural requirements if specific hazards are involved, including:
- asbestos disturbance or damage
- a legionella outbreak
Communicate with parents, carers and other stakeholders, making sure:
- they remain informed but are not unduly alarmed
- that it is clear the school is taking all necessary and appropriate steps to ensure the safety and security of pupils, staff and visitors – this will also inform any media queries
Immediately contact the emergency services in emergencies such as fire or flood. Where there is deemed to be a wider environmental risk, contact the local authority and residents near the school (who may also be at risk).
In the event of a flood or severe weather related emergency schools should report the emergency to incident.ALERT@education.gov.uk and contact the DfE helpline on 0370 000 2288.
Covering the cost of repairs
Where the cost of repairs and recovery are significant and not covered by insurance or risk protection arrangements, maintained and voluntary-aided schools should discuss courses of action with their local authority.
Academies should consider the use of existing capital funds and reserves. In exceptional circumstances academy trusts may apply for emergency funding.
Urgent Capital Support provides funding assistance to address urgent building condition issues. To be eligible, these issues must put at risk the safety of pupils and staff, or threaten the closure of the whole, or a significant part, of the school. They may also be eligible to apply for the Condition Improvement Fund (CIF).
If you are part of an academy trust that receives a formulaic school condition allocation you are not eligible to apply for CIF or Urgent Capital Support.