Education Construction Market - Uk 2009-2013

Table of Contents

CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 6

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 7

3. PRIMARY & SECONDARY EDUCATION IN THE UK 12

• 3.1 STRUCTURE OF THE STATE EDUCATION SECTOR 12
  • 3.1.1 England and Wales 12
  • 3.1.2 Scotland 13
  • 3.1.3 Northern Ireland 14
• 3.2 TYPES OF SCHOOL IN THE UK 14
  • 3.2.1 Maintained 15
  • 3.2.2 City Technology Colleges 15
  • 3.2.3 Academies 15
  • 3.2.4 Other Types of Schools 16
  • 3.2.5 UK Independent Schools Sector 16
• 3.3 STATE EDUCATION FUNDING IN THE UK 17
  • 3.3.1 Total Education Spending 18
  • 3.3.2 DCSF Funding 19
  • 3.3.3 Spending by Function 20

4. THE HIGHER EDUCATION SECTOR IN THE UK 21

• 4.1 OVERVIEW & STRUCTURE 21
  • 4.1.1 Impact of the ' New Universities' on Infrastructure Development 21
  • 4.1.2 Student Growth 23
  • 4.1.3 Tuition Fees 25
• 4.2 HIGHER EDUCATION FUNDING 25
  • 4.2.1 Sources of Funding 25
  • 4.2.2 Funding Councils 26
  • 4.2.3 Endowment Funds 30

5. CONTRACTORS OUTPUT IN THE UK EDUCATION SECTOR 32

• 5.1 TOTAL CONSTRUCTION OUTPUT 32
  • 5.1.1 Value of Output - Construction New Work 32
  • 5.1.2 Construction Output by Sector 33
  • 5.1.3 Construction Output in 2009 and Beyond 34
• 5.2 CONTRACTORS OUTPUT IN THE EDUCATION SECTOR 36
  • 5.2.1 Outlook for Education Construction Work 37
• 5.3 CAPITAL EXPENDITURE IN THE SCHOOLS SECTOR 39
  • 5.3.1 England 39
  • 5.3.2 Early Release of DSCF Funding - March 2009 41
  • 5.3.3 Scotland 43
  • 5.3.4 Wales 44
  • 5.3.5 N. Ireland 44
• 5.4 PFI IN THE EDUCATION SECTOR 44
• 5.5 BUILDING SCHOOLS FOR THE FUTURE PROGRAMME 45
  • 5.5.1 Background & Overview 45
  • 5.5.2 Investment in BSF 45
  • 5.5.3 How BSF Works 47
  • 5.5.4 Scheme Update/Progress to Date 48
  • 5.5.5 BSF Issues 52
  • 5.5.6 Procurement under BSF 53
  • 5.5.7 BSF Clients/Consortia 54
  • 5.5.8 Future of BSF 57
• 5.6 ACADEMIES PROGRAMME 58
  • 5.6.1 Programme Overview & Progress to date 58
  • 5.6.2 Academies Framework 2010 58
  • 5.6.3 Academies Consortia 59
• 5.7 PRIMARY CAPITAL PROGRAMME 59
  • 5.7.1 Overview 59
  • 5.7.2 PCP Funding 60
  • 5.7.3 Roll Out of the Programme 60
  • 5.7.4 PCP Procurement 62
• 5.8 CAPITAL EXPENDITURE IN THE HIGHER EDUCATION SECTOR 63
  • 5.8.1 Capital Expenditure Levels 63
  • 5.8.2 Early Release of Capital Funds for Higher Education 64
  • 5.8.3 University Estates 65
  • 5.8.4 University Capital Building Programme 67
• 5.9 UNIVERSITY INFRASTRUCTURE - STUDENT ACCOMMODATION 68
  • 5.9.1 Types of Student Accommodation 69
  • 5.9.2 Commercial Student Accommodation Sector 71

6. CONTRACTOR PROFILES 75

• 6.1 STRUCTURE AND SIZE OF THE CONTRACTING INDUSTRY 75
• 6.2 KEY CONSTRUCTION COMPANIES AND CONTACTORS 76
• 6.3 PRIVATE SECTOR CONSORTIA IN THE EDUCATION SECTOR 78
• 6.4 KEY EDUCATION CONTRACTOR PROFILES 80

TABLES AND CHARTS

• TABLE 1 SUMMARY OF MAJOR CAPITAL SPENDING PROGRAMMES IN THE PUBLIC EDUCATION SECTOR 2006-2011 7
• TABLE 2 EDUCATION SYSTEM IN ENGLAND - STATE AND PRIVATE - BY AGE GROUP 13
• TABLE 3 EDUCATION ESTABLISHMENTS BY TYPE AND NUMBER - UK 2008 14
• CHART 4 VALUE OF TOTAL UK EDUCATION EXPENDITURE 2004-2011 (£ BILLION) 18
• TABLE 5 DCSF SPENDING 2006 - 2011 - MIX BY RESOURCES & CAPITAL (£ BILLION) 19
• TABLE 6 UK EDUCATION SPENDING BY SECTOR - SERVICES AND CAPITAL - 2005 - 2008 (£M) 20
• TABLE 7 INFRASTRUCTURE PLANS OF NEWLY FORMED UNIVERSITIES - CAPITAL SPEND AND CONSTRUCTION PLANS 22
• TABLE 8 NUMBER OF STUDENTS IN HIGHER EDUCATION IN THE UK 2000-2010 23
• TABLE 9 HE FUNDING BODIES BY REGION - TOTAL BUDGET AND CAPITAL BUDGETS 2009-10 26
• CHART 10 HEFCE GRANT 2009-10 BY FUNDING STREAM 27
• TABLE 11 HEFCE ENGLAND FUNDING 2009-10 - TOP 10 UNIVERSITIES 28
• TABLE 12 SFC SCOTLAND FUNDING 2009-10 - TOP 10 UNIVERSITIES 29
• TABLE 13 HEFCW FUNDING 2009-10 - TOP 5 UNIVERSITIES 30
• TABLE 14 IMPACT OF THE ECONOMIC DOWNTURN ON UNIVERSITY ENDOWMENT FUNDS 31
• CHART 15 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2013 (£ BILLION) 32
• CHART 16 VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2008 34
• TABLE 17 CONTRACTORS OUTPUT OF EDUCATION SECTOR WORK (PUBLIC/PRIVATE) 1998-2008 (£M) 36
• TABLE 18 SUMMARY INFORMATION - PUBLIC SECTOR SCHOOLS FUNDING 2008-11 - BY SECTOR, PROGRAMME AND VALUE 38
• CHART 19 SCHOOL BUILDINGS CAPITAL EXPENDITURE 2007-2011 (£ BILLION) 40
• TABLE 20 CAPITAL FUNDING STREAMS - ALLOCATION FOR SCHOOLS 2008-09 TO 2010-11 (£M) 41
• TABLE 21 EDUCATION CAPITAL ACCELERATION PACKAGE - MARCH 2009 42
• TABLE 22 LA BREAKDOWNS - SCHOOLS CAPITAL ALLOCATIONS ACCELERATED FROM 2010-11 TO 2009-10 - TOP 20 ALLOCATIONS 43
• TABLE 23 FINANCIAL ALLOCATIONS UNDER BSF CONVENTIONAL / PFI MIX 2005-2011 (£BN) 46
• TABLE 24 SCHOOL NEW BUILD, RENEWAL & REFURBISHMENT UNDER BSF 46
• TABLE 25 BSF SCHOOL OPENINGS 2008-12 49
• TABLE 26 BSF PROGRESS (AS AT DECEMBER 2008) - SCHOOLS PROGRAMME, LOCAL AUTHORITIES AND PROGRESS STATUS 49
• TABLE 27 BSF WAVES 7-15 - PROJECT STATUS / NO. OF AUTHORITIES 51
• TABLE 28 LEADING BSF CONTRACTORS AND PRINCIPAL CONSORTIA MEMBERS (DESIGN, CONSTRUCTION, FM) 55
• TABLE 29 PRIMARY CAPITAL PROGRAMME - FUNDING 2008 - 2012 (£M) 60
• TABLE 30 PRIMARY CAPITAL PROGRAMME - COUNCILS WITH FUNDING CONFIRMED FOR 2009/10 AND 2010/11 62
• TABLE 31 TOP 10 CAPITAL ALLOCATIONS TO HIGHER EDUCATION INSTITUTIONS 2008-11 (£M) 64
• TABLE 32 HIGHER EDUCATION ESTATE - TOTAL AREA BY SECTOR 2006-07 66
• TABLE 33 UK TOP 10 UNIVERSITY CLIENTS BY CAPITAL EXPENDITURE, PROCUREMENT ROUTE AND CAPITAL ALLOCATION 2008-11 (£M) 68
• CHART 34 TYPES OF STUDENT ACCOMMODATION IN THE UK - APPROXIMATE SHARE BY SECTOR 2008 70
• TABLE 35 MARKET SHARES OF LEADING COMMERCIAL OPERATORS OF STUDENT ACCOMMODATION IN THE UK 2008 72
• CHART 36 ESTIMATED NUMBER OF NEW STUDENT BED SPACES BUILT PER YEAR - 2002-2012 74
• TABLE 37 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2007 75
• TABLE 38 UK' S TOP 20 CONTRACTORS BY GROUP TURNOVER 2007/2008 77
• TABLE 39 LEADING EDUCATION CONTRACTORS AND PRINCIPAL CONSORTIA 79
• TABLE 40 KEY CONTRACTORS IN THE EDUCATION SECTOR - SECTOR STRENGTHS & KEY PROJECTS 83