The healthy level of construction
work being let under the government’s Schools Rebuilding Programme is creating
growing opportunities for new contracts across the country, according to
research by Glenigan.
More capacity is needed in the sector to accommodate a 15% rise in secondary
school pupil numbers which the Department of Education is expecting by 2027.
Under the Schools Rebuilding Programme, the government has committed to
rebuilding 500 schools over the next decade.
After the first 100 schools under the programme were announced last year,
the government confirmed last month that it expects to ‘prioritise’ up to 300
schools in 2022 and 2023.
Meanwhile, the Chancellor’s recent spring statement in March showed the
education department capital budget is set to increase from £5.2 billion in
2021/22 to £6.3 billion in 2022/23 and to £7 billion in the following year.
Major contractors such as Wates, Wilmott Dixon and Kier Group are
benefitting from a healthy workload in the education sector. Amongst its recent
contract wins, Kier Group recently highlighted its appointment to the £7
billion Department of Education 2021 Construction Framework.
But the signs are that the government’s pledges on schools are translating
into some significant new projects for contractors of all sizes across the
industry, particularly in the Midlands and the North West.
In April alone, Glenigan data shows work started on numerous new schemes
under the Schools Rebuilding Programme. These included a £22.9 million project
at Hartshill School in Nuneaton (Project ID: 21058656), a £21 million contract
at Tarleton Academy in Preston (Project ID: 21058066) and a £3 million rebuild
of Lytham St Annes High School in Lancashire (Project ID: 21058065).
Work also started in April on a £25 million rebuild of Fred Longworth High
School in Tyldesley, Greater Manchester. BAM Construct UK is the main
contractor on the project which will run for 25 months and involves over 9,500
sq m of new space and the demolition of an original school building (Project
ID: 21058671).
A series of new contract opportunities suggests the schools sector workload
should continue to grow. In Coventry, detailed plans have been submitted and
work is expected to start this autumn on a £28.45 million project at Coundon
Court School. It will involve the demolition of six existing buildings and the
construction of three new education buildings covering 11,165 sq m with work
set to run over three years. Wates and Coventry City Council are the clients on
the scheme (Project ID: 09234263).
Contract opportunities on smaller school projects are also emerging under
the government’s rebuilding programme. In the East Midlands in Leicester,
tenders are currently being invited for a £4.5 million school rebuild at
Catherine Infant School where work is due to start towards the end of this year
and run for ten months (Project ID: 21058083).
The future pipeline for smaller school projects beyond this year also looks
healthy. Across the country, Glenigan data highlights dozens of rebuild
projects at schools selected under the School Rebuilding Programme - typically
valued at £5 million - which are at the pre-tender and pre-planning stage and
where work is due to start over the next 18 months.
One example is St Paul’s Catholic Primary School in Billingham which has
been chosen as one of the second set of 50 schools under the programme. Work on
the £5 million re-build is pencilled in to start in July next year and run for
12 months (Project ID: 21339607).
