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.
Good governance in estate management helps you make good and consistent decisions, by providing:
- strategic leadership
- robust accountability for estates issues
- oversight and assurance for educational and financial performance
The governance guides for academies, multi-academy trusts and maintained schools provides more information about roles, functions and duties of governance.
There is also guidance for multi-academy trusts on establishing and developing their trust.
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 need to take on new responsibilities for managing the estate. There are actions you should take in the lead-up to expiry.
If you have any queries about this, contact us at [email protected].
Strategic estate management is not just for property professionals. It should be:
- led by the board with support from executive leaders and school business professionals
- integrated with other business and financial planning processes
Everyone has a role to play. Recognising estates in your governance arrangements makes 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 reviewed regularly by a relevant committee and 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 investment needs 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 challenge executive leaders and obtain 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.
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 to:
- 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 clearly document which governance functions are retained at board level and which are delegated.
You should make sure that your governance arrangements are referred to and reflected in your strategic estate documents.
Sharing your arrangements
Good communication at all levels is essential to make sure everyone at the organisational and site level understands:
- the arrangements
- roles and responsibilities
- reporting lines
- working practices
As well as the governance arrangements, you should share your estate vision, strategy and asset management plan with everyone involved in, or affected by, operational estate management.
Consider how you will share your arrangements with new staff and communicate any changes to existing staff.
You may also choose to share some parts with other stakeholders, such as:
- other schools
- potential partners
- your local community
- parents and carers
Skills and knowledge
You will need a range of skills and knowledge within the governing board and the organisation as a whole.
Governing boards should include a range of different skills and experience. Boards should ensure they have the necessary skills to fulfil their role in managing the school estate.
Managing the estate involves many strategic, operational and technical roles. If you do not already have the knowledge in your organisation to cover all roles, you may consider:
- training and supporting current staff to cover routine roles
- sharing skills and resources with other schools
- employing external professionals
When engaging professional support, follow the appropriate procurement processes. There is more information about how to procure professional support.
The estate management competency framework sets out the competency levels required for roles and responsibilities across the school estate. It covers the skills and knowledge required in operational to leadership roles, including those who oversee strategic management of the estate and set governance arrangements.
The Institute of School Business Leadership (ISBL) professional standards include a section on estate management, 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 budgets 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 should draw on analysis of data, presented through your asset management plan.
Considerations for budgeting and finance
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
- investment in digital infrastructure
Revenue costs are associated with the operational running of the estate, including facilities management and digital technology costs.
You should know the full cost of occupying the estate. This can be a challenge if you have inconsistent budget recording or fragmented responsibilities and data recording.
You should consider the revenue implications of any investment in the estate in the short, medium and long term. Understanding the full financial implications of proposals better decision-making and good value for money.
Capital projects may have revenue implications that you need to consider in your decision making.
You should consider investing in projects that could save money and 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.
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 where there is value tied up in your asset that you may be able to release, but that you are not currently benefitting from.
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.
However, it is important to be aware of any legal interests or restrictions on changes to land or building assets and any changes to these.
Prioritisation
Prioritising works is important to make sure your budget is used to deliver best value for money. Taking a strategic approach identifies investment needs across the whole estate. This helps you to:
- plan your budget
- avoid unexpected budget pressures
- make 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.
Although 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
- cyber security risk
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
- different options available to you on a whole-life basis – find out more about carrying out an options appraisal and whole life issues
- options to deliver savings through rationalising the estate, which 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, which 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 helps 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 and any relevant legislation and regulations. 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
Different stages of any project require and involve different skills. You should involve 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, including:
- clients (the appropriate school representative)
- client advisers
- project lead
- architect/designer
- building services engineer
- civil and structural engineer
- asbestos consultant
- cost consultant
- contract administrator
- health and safety adviser
- procurement adviser
- digital technology adviser
- IT support
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.
You may need to liaise with your local authority in the works stages of some projects, including planning or building control functions.
Procurement options
Professional services and advice
Schools can use the find a framework tool to find DfE approved frameworks for professional services, listed under ‘services’, then ‘consultancy’.
These frameworks 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
- asbestos services
Other frameworks and deals
The guidance on buying for schools will 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, broadband, software and licensing
- legal services
- printing and copying devices
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 use the DfE school buildings construction framework.
Local authority arrangements
You may have the option to use local authority regional 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.
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
- procurement evaluation methodology
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.
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. You should also consider other types of emergencies which might affect your premises - for example, cyber attacks or incidents that could affect your CCTV, building management systems or access control systems.
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
If you have asbestos in your premises, you should have an asbestos management plan that includes what to do in an emergency. Refer to asbestos management in schools for further information.
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 [email protected].
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.
Risk protection arrangement
The risk protection arrangement (RPA) is DfE’s alternative to commercial insurance. All public sector schools can join the RPA.
RPA members should maintain a minimum standard of risk management. The membership rules detail the full cover and provision of the RPA.