Home' Teacher : October 2010 Contents 46 TEACHER OCTOBER 2010
much they can spend. Financiers will want
to see the school's audited financial state-
ments, property valuations, and both past
and predicted enrolments when determining
how much they are willing to lend, for how
long and on what terms.
When a project budget is set, it's impor-
tant to be clear as to what it includes.
Allowance needs to be made for furniture,
specialist plant and equipment, including
information and communication technol-
ogy, landscaping, temporary classrooms
and offices, as these items will generally be
on top of the builder's quoted price. Sec-
ondary consultants such as urban planners,
building code certifiers, electrical, construc-
tion and traffic engineers, cost consultants,
interior designers and landscape architects
may be required. A cash flow forecast will
be required to ensure sufficient funds are on
hand to make progress payments as they fall
due. Appropriate contingencies need to be
built in to cover unexpected costs or changes
to the design. Having a good cost consult-
ant or quantity surveyor working with you
throughout the project is a real benefit.
When making the financing decision, it's
worth considering leasing for some items.
Broadly speaking, there are two types of
leasing. Rental leasing is used for items with
a limited life, such as computers. As you're
only renting the goods, you have the choice
at the end of the lease of either returning
them or buying them from the leasing com-
pany. Finance leasing is generally used for
assets with a longer life and repayments are
divided into principal and interest compo-
nents, usually with a residual payment at
the end of the lease after which you own
There are various methods of building
procurement including lump sum contract
and construction management.
Under a lump sum contract, prices are
sought from builders, usually by way of ten-
der for the construction of the project includ-
ing contingencies. So that the builder can
provide an accurate price, the design must be
finalised and fully documented prior to seek-
ing construction tenders. Once the success-
ful tender is carefully checked and selected,
a fixed lump sum contract is signed.
With construction management, the
builder is retained while the building is still
being designed and a fixed builder's fee --
either in dollar terms or a percentage of
the project budget -- is agreed. The client
then works with the architect and builder to
finalise the design within an agreed budget.
Each of the trades is tendered as the project
Whatever procurement method is used,
the school needs to have a designated project
manager -- either a member of staff with pre-
vious experience or an external contractor.
The project manager should be involved in
all design meetings and, once construction
starts, will be a member of the building
team, reporting regularly to school man-
agement throughout the project to high-
light and advise on any concerns regard-
ing design changes, cost versus budget and
adherence to timelines.
Once your building or other facility is
complete, the project is not yet finished. A
handover inspection must be conducted to
identify all defects to be remedied. Before
it ceases being a building site with limited
access, a certificate of occupation must be
obtained and then retained. Confirmation
that all works are completed and defects
have been attended to must be sought before
any bank guarantees are released. Building
and plant warranties and liability periods
should be recorded and monitored. Finally,
a post-project evaluation should be carried
out to measure how the end product fulfils
the initial design brief and to determine how
better to undertake future projects.
Finally, it should be an exciting time when
your school building or other facility is com-
plete, so it's worth arranging an appropri-
ate official opening to celebrate what is an
important milestone -- but always remember
to allow sufficient time to complete the fin-
ishing touches between the building hand-
over and the official opening.
We ndy Wills is the Business Director at
Pe mbroke School, Adelaide.
Having a good cost
consultant or quantity
surveyor working with
you throughout the
project is a real benefit.
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