School-funded Capital Projects

Policy

This policy sets out requirements for schools contributing or raising money to build new facilities, upgrade existing facilities, or undertake maintenance projects where the project includes ramps or the total value of the project is estimated to exceed $150,000 (including GST). This includes school-funded contributions to building projects led by the Victorian School Building Authority (VSBA).

Summary

• Regardless of value, all projects involving ramps must be VSBA-led. Schools can contact the VSBA’s Inclusion Infrastructure Unit for guidance by emailing inclusion.infrastructure.unit@education.vic.gov.au
• Schools may, without VSBA prior consultation or approval, construct or carry out improvements to any building structure, site infrastructure or to school grounds (excluding ramps), where the value of the works does not exceed $150,000 (including GST). Schools can seek VSBA support or review of the project from the School-funded Projects Program Unit, by emailing vsba.school.funded@education.vic.gov.au if they wish.
• For projects up to $150,000 schools must follow the related polices aligned to their project which may include Procuring Low-value Construction Works or Services policy, Repurposing and Renaming School Spaces policy, the Finance Manual and also complete the School Asset Drawing Changes Checklist (PDF) whenever a project alters the school site drawings.
• For projects estimated to exceed $150,000 (including GST):
  • schools must seek VSBA approval via the online project proposal approval form (school login required) before commencing works or entering into contracts for school-funded projects
  • schools must follow the guidance outlined in Step 3 for the tender and contract process for consultants and contractors, including financial thresholds
  • schools may be required by the VSBA to engage a contractor from the Construction Supplier Register (CSR)
  • schools may request the VSBA to lead the project and if approved, a 5% Portfolio and Management Allowance (PAMA) fee will apply.
• Projects that are deemed to be high-risk or that exceed $500,000 (including GST), will be VSBA-led and schools will be required to pay a 5% PAMA fee.

Details

Schools may raise money to build, upgrade, or undertake maintenance on school facilities. Schools can also contribute funds to building projects led by the VSBA.

This policy supports the department and school councils to fulfil their obligations under the Project Development and Construction Management Act 1994 (Vic) and Ministerial Order No 1280 – Constitution of Government School Councils 2020 (DOCX).

This policy also ensures that school contributions to facilities align with the government’s education provision, asset management framework and financial management objectives.

Before 31 December 2027, schools may apply for a credit-to-cash transfer, for capital investment, in line with the Student Resource Package – Managing the Budget: Cash guidance.

Planning school-funded capital or maintenance projects

When planning a school-funded project, schools are encouraged to speak to their regional provision and planning manager as early as possible. This will help to avoid issues later, such as having to resubmit an approval request if a project’s cost exceeds the VSBA approved amount.

Schools are also strongly encouraged to contact the School-funded Projects Program Unit by emailing vsba.school.funded@education.vic.gov.au to arrange a pre-planning meeting before commencing a school-funded capital project application.

Schools wishing to contribute school-raised funds to a VSBA-led building project may speak to the VSBA-assigned project officer allocated to delivering their project.

Guidance materials have been developed to assist schools planning school-funded projects and school-funded contributions to VSBA-led building projects, on the Guidance tab. This includes guidance outlined in Step 3 for the tender and contract process for consultants and contractors, including financial thresholds.

Schools are class 9b buildings under the National Construction Code and are required to engage a commercial builder to deliver works. The VSBA’s School-funded Projects Program Unit can advise when an exemption from this may apply. Schools can contact the team by emailing vsba.school.funded@education.vic.gov.au if they wish.

When planning school-funded capital projects, schools are required to comply with the biodiversity duty under the Flora and Fauna Guarantee Act 1988 (Vic). This means schools must give consideration to the impact of potential building or maintenance works on biodiversity. Further information on the duty can be found in the biodiversity duty guidance chapter in the Tree and Vegetation Management policy on PAL.

Schools must design facilities in a way that considers and responds to current and future climate change impacts, as outlined in the Building Quality Standards Handbook (refer to section 3.5.2).

Approval requirements

Regardless of value, all projects involving a ramp must be VSBA-led. For more information regarding projects involving ramps, refer to the section on 'works involving ramps' on this page.

Schools do not require VSBA approval for school-funded projects valued at less than or equal to $150,000 (including GST). However, schools may seek VSBA support or review of the project if they wish from the School-funded Projects Program Unit, by emailing vsba.school.funded@education.vic.gov.au. Schools must, however, comply with the Project Development and Construction Management Act, which has been translated into the Procuring Low-Value Construction Works or Services policy and the Repurposing and Renaming School Spaces policy, where relevant.

Schools must ensure that the principal or school council president as the executive officer of the school council has endorsed the preferred quotation before executing a contract, with the endorsement documented in school council meeting minutes, a confirming email, or any other formal record.

Schools must receive VSBA approval before commencing works or entering contracts for school-funded projects estimated to exceed $150,000 (including GST). VSBA approval must be sought via the online project proposal approval form (school login required).

Regardless of value, all school-funded contributions to VSBA-led projects (excluding VSBA-led grants programs) must receive VSBA approval via the online project proposal approval form.

Schools seeking to contribute funds to VSBA-led grants programs (for example, School Shade Sails Fund, Inclusive Schools Fund, Minor Capital Works Fund) are not required to use the online project proposal approval form unless the school-funded contributions exceed the maximum amount that can be approved as part of the grant application process.

Schools that are not required to use the online project proposal approval form must still receive VSBA approval through an existing grants process before contributing funds to a VSBA-led grants program. Refer to individual grant program guidelines on the VSBA website for further information on co-contributions.

Schools seeking to contribute funds to the Greener Government School Buildings (GGSB) program are not required to use the online project proposal approval form as school-funded contributions are approved as part of the GGSB program application process. For information about the GGSB program, refer to the Sustainable Facilities Policy Resources tab, or email greener.schools@education.vic.gov.au

Schools must receive approval from their school council before seeking VSBA approval for a school-funded capital project, or for a school-funded contribution to a VSBA-led capital project or grants program.

Works involving ramps

Regardless of value, all projects involving a ramp must be VSBA-led. This includes all construction or improvements to any building structure on school grounds, or improvements to school grounds.

Schools can contact the VSBA’s Inclusion Infrastructure Unit for guidance by emailing inclusion.infrastructure.unit@education.vic.gov.au

Approval form

The online project proposal approval form (school login required) is tailored to the type and estimated value of the proposed project.

Schools must complete each section of the form and attach all required documents.

The VSBA cannot approve project proposal from a school unless all required documents are submitted. There may be instances where the VSBA asks schools to provide further evidence of compliance with this policy before their proposal is approved.

Refer to Step 2: Submitting an online project proposal approval form in the Guidance tab for more information on how to complete the approval form, including required documentation.

Approval criteria

The VSBA will consider the following when assessing a school’s project approval request.

Funding sources

• Schools must disclose details of their maintenance plan and proposal’s funding source/s.
• SRP maintenance and minor works, annual contracts and grounds allowance funding must only be used to fund maintenance works. Schools must not fund capital projects with these funding lines.
• For facilities built outside a school’s designated facility area, schools must demonstrate sustainable ongoing funding for maintenance, as the space will be ineligible for SRP funding. Schools may demonstrate ongoing funding through a Community Joint Use Agreement or hire and license fees. For more information, refer to the Community Use of Schools – Hiring and Licensing and Community Use of Schools – Community Joint Use Agreements policies.
• Proposed school-funded capital projects with funding provided through a credit-to-cash transfer must be done in line with the Student Resource Package – Managing the Budget: Cash guidance and School Carryover Policy.

Condition and Maintenance of existing facilities

• Schools must demonstrate that existing facilities are in good condition before new facilities are proposed.
• Schools must demonstrate good asset management practices either through an endorsed and implemented School Maintenance Plan (SMP), if a Rolling Facilities Evaluation (RFE) has been conducted, or by the school’s maintenance activities history, if a RFE has not been conducted. For this purpose, schools must code revenue and expenditure in CASES21 as outlined in the Finance Manual.
• Where applicable, the approval process will assess if the school’s SMP is up-to-date.
• Schools are encouraged to invest in capital or maintenance projects in line with their existing SMP, if applicable.
• Where the proposed project is not consistent with the school’s SMP, schools need to provide reasoning behind deprioritising maintenance works.

Facility area

• Schools are encouraged to ensure projects are in line with their designated facility area schedule and, if applicable, with any existing asset management plan (AMP). Schools proposing departures from their designated facility area schedule or an existing AMP are required to provide reasoning behind the proposed project. For more information refer to the Asset Management Planning – School Upgrades policy.
• Projects should not reduce the enrolment capacity of the school unless the school has excess space and the reduction in enrolment capacity is endorsed by VSBA. For more information refer to the Capacity and Area Allocation Advice.
• All demolition projects must comply with the Demolition Policy.

Approval decisions and timelines

All proposed projects submitted via the online project proposal approval form are first reviewed by the relevant Regional Office provision and planning team, before progressing to the VSBA for assessment and approval.

Approval timelines are dependent on the value and complexity of the project.

Schools should note the following indicative timelines when planning their proposal.

• Regional Office review – 2 to 4 weeks after proposal submission via the online project proposal approval form.
• VSBA approval – 2 to 8 weeks once the Regional Office review has been completed.

The VSBA’s School-funded Projects Program Unit will notify the school when the Regional Office review has been completed and their proposal has been progressed to the VSBA for assessment and approval.

Further information on the approval process is available on the Guidance tab.

Approval for school-led projects

Should the project be approved as a school-led project, schools will need to seek formal approval from the VSBA, through the online project proposal approval form (staff login required) prior to proceeding to the following project stages.

These are outlined below:

• Consultant procurement (for estimated fees exceeding $150,000 including GST).
• Consultant contract engagement (for fees exceeding $150,000 including GST).
• Construction Contractor procurement quotes or tenders (for estimated contract value exceeding $150,000 including GST). Refer to financial thresholds for tender and contract processes in Summary section above.
• Entering into construction contract with preferred commercial contractor.

Refer to the Resources tab for relevant templates to be submitted to the VSBA.

Further information on proceeding to tender, entering a contract and the Construction Supplier Register is available on the Guidance tab.

Exemptions from planning permit requirements

The Planning and Environment Act 1987 (Vic) establishes a planning system that sets out how land may be used and developed. Under these schemes, planning permits provide legal permission for using or developing a piece of land.

The Minister for Education is exempt from obtaining planning permits for government schools under section 16 of the Act. As such, the VSBA and schools do not require local planning permits to undertake capital projects.

However, schools must consult with relevant municipal councils during the key planning phases of high value school-led capital projects that may impact the local community. For example, a new auditorium or sports field and where possible, design buildings that comply with the intent of local planning schemes.

Building permits

All construction and capital works projects on school sites must comply with the National Construction Code (NCC), the Victorian and Australian building standards, the Building Quality Standards Handbook, and all relevant departmental infrastructure related policies. For more information, refer to the Building Quality Standards Handbook (BQSH) — School Construction and Design Standards Policy.

Certain building projects may require a building permit. Building permits are documents certifying that a proposed building complies with the relevant building regulations.

When planning a school-funded project, schools should speak to their regional provision and planning manager about building permit requirements.

Good neighbour guide

The department has developed the Good neighbour guide (PDF) to support schools in informing and preparing their school and local communities for any change or disruption that capital works may cause.

The good neighbour guide includes templates and examples of letters that can assist schools engaging with their local community. These are also extracted as downloadable Word documents in the Resources tab.

School-funded facilities on non-school land

Schools can contribute funding to construct a new facility (such as a stadium, sporting ground or theatre) with a community partner, such as a local government authority or a not-for-profit community-based entity, in line with the Community Use of Schools – Community Joint Use Agreement policy and the Competition Grade Sporting Facilities policy.

Schools can contact VSBA’s Property Unit at vsba.property@education.vic.gov.au or by phone on 1800 896 950 for support or advice.

Recording of school-funded contributions

To ensure transparency, all funding from ‘third-party’ contributors (such as schools) is captured in the Victorian Government’s annual Budget Paper 4.

Considering climate change impacts

School facility designs by project consultants, including facilities upgrades, new facilities and maintenance projects must:

• promote environmental and economic sustainability and contribute to emissions reductions
• consider and respond to current and future climate change impacts to help future-proof the quality of learning environments and especially, the safety and comfort for staff and students
• apply environmentally-sustainable design principles, as required under the BQSH and other relevant policies.

Schools must consider the BQSH when planning a school-funded capital project and are recommended to also consider the Sustainable and Climate Resilient Facilities policy for further guidance.

Definitions

Construction Supplier Register (CSR)
The CSR is the pre-qualification scheme for building contractors and consultants interested in obtaining work from Victorian Government departments and agencies.

Designated facility area
To ensure equity across schools, the department has developed the facility area schedules which indicate the spaces required for a school to deliver the curriculum for a certain number of enrolments.

The facility area schedules are tables that set out the number and type of learning spaces and/or square metres of space that are required for a school of a certain size and type – for example primary, secondary, special and special developmental. This space is known as a school's designated facility area. A school’s designated facility area allocation is key to calculating resource allocations and determining the size of new facilities in capital projects.

Quote
A quote refers to a fixed price offer for a defined scope of services or works, which is valid for a specific period, as defined by the issuer. The expiration date is usually between 7 and 30 days.

Ramp
A ramp is defined as an 'inclined surface on a continuous accessible path of travel between 2 landings with a gradient steeper than 1 in 20 but not steeper than 1 in 14'. Ramps will be designed in accordance with the Australian Standards.

Tender
A tender is a formal, structured invitation for potential contractors to bid on government projects, which includes a formal request for tender (RFT) and detailed design documentation and specifications outlining project requirements and evaluation criteria.

Related policies

• Asbestos Management
• Building Quality Standards Handbook (BQSH) — School Construction and Design Standards
• Capacity and Area Allocation
• Capital Building Projects in Schools
• Community Use of Schools
• Competition Grade Sporting Facilities
• Demolition
• Insurance for Schools
• Procuring Low Value Construction Works and Services
• Repurposing and Renaming Spaces
• School Maintenance Plans and Rolling Facilities Evaluations
• Soil, Mulch or Loose Fill
• Sustainable and Climate Resilient Facilities
• Tree and Vegetation Management

Relevant legislation

• Flora and Fauna Guarantee Act 1988 (Vic)
• Ministerial Order No 1280 – Constitution of Government School Councils 2020 (DOCX)
• Planning and Environment Act 1987 (Vic)
• Project Development and Construction Management Act 1994 (Vic)

Contacts

For general facilities enquiries, schools can contact their regional provision and planning manager.

North-eastern Victoria region

Damien Hanwright
Damien.Hanwright@education.vic.gov.au
03 7022 1172

North-western Victoria region

Jeanette Stubbs
Jeanette.Stubbs@education.vic.gov.au
03 8468 9224

South-eastern Victoria region

Darren Clarke
Darren.Clarke@education.vic.gov.au
03 8904 2559

South-western Victoria region

Kimberley Bendall
Kimberley.Bendall@education.vic.gov.au
03 9194 6305

For specific school-funded capital project enquiries, schools can contact the VSBA’s School-funded Projects Program Unit on
vsba.school.funded@education.vic.gov.au

For specific guidance on ramps, schools can contact the VSBA’s Inclusion Infrastructure unit by emailing inclusion.infrastructure.unit@education.vic.gov.au

Guidance for School-funded Capital Projects

This guidance contains the following chapters, which can be accessed using the right-hand side menu bar:

• Overview
• Step 1: Planning for investment in capital or maintenance projects
• Step 2: Submitting an online project proposal approval form
• Step 3: Proceeding to tender and contract for project delivery
• Step 4: Completion of the project

Overview

Schools may fund and lead capital or maintenance projects in their entirety or contribute funds to building projects led by the Victorian School Building Authority (VSBA).

An online process streamlines the approval process and enables tracking of school project proposals to ensure their timely consideration by the VSBA.

There are 4 key steps to the process:

• Step 1: Planning for investment in capital or maintenance projects
• Step 2: Submitting an online project proposal approval form
• Step 3: Proceeding to tender and contract for project delivery
  • Projects delivered by the school
  • Projects delivered by the VSBA
• Step 4: Completion of the project

Step 1: Planning for investment in capital or maintenance projects

Schools can contribute to existing VSBA-led building projects or invest in school-funded capital or maintenance projects.

Planning for investment in capital or maintenance projects should be proportionate to the type of project being pursued, for example, a maintenance project of existing facilities is simpler than building a new facility.

For school-funded projects that require VSBA approval (projects estimated to exceed $150,000 including GST), schools are encouraged to speak to their regional provision and planning manager or VSBA’s School-funded Projects Program Unit (vsba.school.funded@education.vic.gov.au) prior to making an application.

If a school wishes to contribute school-raised funds to a VSBA-led building project, they may speak to the VSBA assigned project officer allocated to delivering their project.

Regardless of value, all projects involving a ramp must be VSBA-led. For guidance on ramps, schools can contact the VSBA’s Inclusion Infrastructure unit by emailing inclusion.infrastructure.unit@education.vic.gov.au

When schools submit their project proposal to the regional provision and planning team (Step 2), the proposal is reviewed and endorsed based on the information provided (refer to the list of required documents for assessment in Step 2).

Once the regional provision and planning manager has endorsed the project proposal it is submitted to the VSBA for assessment and approval. Once the project proposal is approved, any variations to scope or additional funding require reassessment and reapproval by the VSBA.

Finally, schools must obtain school council approval of the proposal before submitting a project proposal approval form to the VSBA. Schools must upload a completed school council declaration form (using the School Council Declaration template (DOCX)) to the online project proposal approval form.

Schools must follow the guidance outlined in Step 3 for the tender and contract process for consultants and contractors, including financial thresholds.

Engaging a consultant for support with project proposal development

Schools are allowed to engage a consultant to assist with preparation of the project proposal (preliminary scope of works and preliminary cost estimate only). However, schools should limit the engagement of consultants to the project proposal stage. Where the consultant contract value is between $5,000 and $75,000 (including GST), schools must seek a single written quote. Should the consultant contract value exceed $75,000 (including GST), schools must seek a minimum of 3 written quotes through a limited tender process, in line with the Procuring Low-Value Construction Works or Services policy. If the engagement is estimated to exceed $150,000, schools will need to seek VSBA approval (see further information in Step 3).

Prior to engaging a consultant, schools are strongly encouraged to seek advice from their regional provision and planning manager or the VSBA, and refer to the section on engaging a consultant under Step 2. Additionally, where a consultant is required, the VSBA recommends the selection of pre-qualified consultants from the Construction Supplier Register. The VSBA’s School-funded Projects Program unit can provide advice to schools regarding consultant fees, consultant selection and recommend an appropriate VSBA Consultancy Agreement (contract).

Step 2: Submitting an online project proposal approval form

Schools are required to seek approval from the VSBA for any proposed investment in capital or maintenance projects estimated to exceed $150,000 (including GST), using the online project proposal approval form (school login required).

The online project proposal approval form asks schools to specify the proposal type by selecting if the project is a school contribution to an existing VSBA-led building project, a stand-alone school-funded capital project (where there are no active VSBA projects on school site) or a maintenance project.

Schools should provide as much information as available to facilitate the assessment and approval process, including details on funding sources, equity funding expenditure and other relevant detail to demonstrate compliance with the School-funded Capital Projects Policy and other relevant policies.

Information required for approval process

The information required for the online approvals process is tailored to the different types and sizes of projects.

When submitting a project proposal, schools should use the school login account. Schools are encouraged to consult with the applicable checklist outlined below to understand the form requirements.

Schools can save the project proposal as a draft and access it later using the same link: online project proposal approval form (school login required). Project proposals should only be submitted when finalised (including all required attachments) and when ready for review.

The VSBA cannot assess and make a recommendation for approval of a school’s project proposal unless all required documents are submitted.

Information required for the online project proposal approval form – school-funded capital project

For school-funded maintenance projects estimated to exceed $150,000 (including GST)

Schools will need to provide the following information for projects that are solely school funded:

• details of the scope of the proposed project, and where applicable, alignment to the School Maintenance Plan (SMP) (note: the SMP must be endorsed by the VSBA)
• preliminary project proposal cost
• maximum amount of school funds available to invest in the delivery of the project – this shall include the estimated construction costs, consultant fees, 10% design contingency, 10% construction contingency, 10% cost escalation, 5% Portfolio Asset Management Allowance (if VSBA-led project)
• information on the source of funding
• school council declaration: attach minutes from a school council meeting, approving the investment in the proposed project.

Required documents that can be provided to meet these information requirements can include (as relevant):

• marked up School Plan (formerly SAMS Plan) – indicating the location of the proposed project works
• drawings or specifications – if applicable at this early stage to communicate the project
• site investigation reports, including:
  • asbestos/hazardous materials audit required for all internal upgrade/maintenance projects
  • geotechnical report required for all project proposals requiring excavation works
  • soil contamination assessment (geochemical investigation) required for all project proposals requiring excavation works
• cost estimate – high level costs in the form of a cost plan from a quantity surveyor or order of probable costs from an architect
• any other documentation that may help the VSBA assess your project proposal.

If you require assistance with the required documents, contact your regional provision and planning manager or VSBA’s School-funded Projects Program Unit by emailing vsba.school.funded@education.vic.gov.au

For school-funded upgrade projects estimated to exceed $150,000 (including GST)

Project scope

Schools must provide details of the scope of the proposed project, including:

• marked up School Plan (formerly SAMS Plan) – indicating the location of the proposed project works
• Asset Management Plan Stage 2 (AMP2) – no older than 5 years/deemed current (if applicable)
• drawings or specifications – if applicable at this early stage to communicate the project
• site investigation reports, including:
  • asbestos/hazardous materials audit required for all internal upgrade/maintenance projects, internal construction etc.
  • geotechnical report required for all project proposals requiring excavation works
  • soil contamination assessment (geochemical investigation) required for all project proposals requiring excavation works
  • details on flood overlay (if applicable)
• cost estimate – high level costs in the form of a cost plan from a quantity surveyor or order of probable costs from an architect:
  • this shall include estimated construction costs, consultant fees, 10% design contingency, 10% construction contingency, 10% cost escalation
  • note: 5% PAMA fee is applicable for all school-funded projects delivered by the VSBA
• any other documentation that may help the VSBA to assess the project proposal.

Maintenance and condition of existing facilities

Schools are required to provide several documents related to the maintenance and condition of existing facilities.

Schools that have had their Rolling Facilities Evaluation (RFE) must provide their VSBA-endorsed School Maintenance Plan (SMP) (refer to School Maintenance Plans and Rolling Facilities Evaluations policy). Schools that have not had their RFE must provide a relevant maintenance schedule. All schools must provide confirmation that the school has addressed all outstanding priority maintenance either identified in the school's SMP or relevant maintenance schedule.

Where applicable, schools must provide information on whether the project aligns with the school’s SMP or maintenance schedule and attach an overview of maintenance priorities.

Schools must also provide information about any Emergency Maintenance Program or Make Safe Program funding received in the last 24 months.

Facility area

Schools must provide information on how the new or upgraded facility will be used, including:

• whether changes to school facilities will occur as a result of the project
• whether the facility will be used for curriculum purposes (in accordance with the Capacity and Area Allocation Advice)
• information on how the school will fund ongoing maintenance costs of the facility, where applicable
• how the project proposal aligns with the Asset Management Plan and/or the school’s educational direction, where applicable
• how the proposed project will affect the student capacity of the school (for example, whether the project aligns to the school’s excess space strategy and whether it reduces or increases the capacity of the school).

Funding source

Schools must provide information about how the project will be funded, including:

• preliminary project proposal cost
• maximum amount of school funds available to invest in the delivery of the project
• information on the source of funding

Risk assessment of the project

Schools must provide information about risks associated with the project, including:

• information on any risks for delivering the project that the VSBA should be aware of such as hazardous material removal or uneven/rocky terrain
• information on bushfire status of the school, including:
  • whether the school is in a Bushfire Management Zone
  • whether the school has budgeted for additional bushfire standards compliance work
• a marked-up School Plan (formerly SAMS plan) with location of the proposed project
• school council declaration: attach minutes from a school council meeting, approving the investment.

Information required for the online project proposal approval form – Contribution to existing VSBA-led building projects

Schools must note that a 5% PAMA fee is applicable for all school-funded contributions to VSBA-led building projects.

The following information will be required for the online proposal approval form for a contribution to an existing VSBA-led building project.

Project scope

Schools must provide:

• information on any prior contributions to this project
• details about the scope of the proposed project.

Maintenance and condition of existing facilities

Schools must provide the following documents related to the maintenance and condition of existing facilities:

• confirmation that the school has addressed all outstanding priority maintenance either identified in the school’s School Maintenance Plan (SMP), Maintenance schedule or otherwise (note: SMP must be endorsed by the VSBA)
• information on whether the project aligns with the school’s SMP, where applicable
• information on any Emergency Maintenance Program or Make Safe Program funding received in the last 24 months.

Facility area

Schools must provide information on how the new or upgraded facility will be used, including:

• whether changes to school facilities will occur as a result of the project
• whether the facility will be used for curriculum purposes, in accordance with the Capacity and Area Allocation Advice
• information on how the school will fund ongoing maintenance costs of the facility, where applicable (for example, through hiring the facility for community use)
• whether the project proposal aligns with the Asset Management Plan and/or the school’s educational direction, where applicable
• how the proposed project will affect the student capacity of the school (for example, whether it aligns to the school’s excess space strategy and whether it will reduce or increase the capacity of the school).

Funding source

Schools must provide information about how the project will be funded, including:

• preliminary project proposal cost
• maximum amount of school funds available to invest in the delivery of the project
• information on the source of funding.

Risk assessment of the project

Schools must provide information about risks associated with the project, including:

• information on any risks for delivering the project that the VSBA should be aware of such as hazardous material removal or uneven/rocky terrain
• information on bushfire status of the school, including:
  • whether the school in a Bushfire Management Zone
  • whether the school has budgeted for additional bushfire standards compliance work
• a marked-up School Plan (formerly SAMS plan) with location of the proposed project
• school council declaration: attach minutes from a school council meeting, approving the investment.

Form 35 School Contribution

Schools must provide a completed and signed Form 35 School Contribution facilitated by the VSBA Project Officer responsible for the VSBA-led building project.

Step 3: Proceeding to tender and contract for project delivery

Once the project proposal is approved, the VSBA will also communicate the decision regarding the delivery model of the project (i.e. school-led or VSBA-led).

School-funded projects estimated to be between $150,001 (including GST) and $500,000 (including GST), and considered to be low-risk, will be led by the school, unless the school has requested VSBA to lead the project and that has been approved. In cases where the VSBA is leading the project the 5% Portfolio Asset Management Allowance (PAMA) fee will apply.

School-funded projects estimated at or above $500,000 (including GST) or projects assessed to be high risk regardless of value, will be VSBA-led and attract a 5% PAMA fee.

Information required for the tender and contract process for consultants and contractors

All procurement activities must now follow the following rules for works undertaken by a single supplier (consultant and builders):

• between $150,000 to $200,000 (including GST in value) – at least 3 quotes are required from suitably qualified consultants for construction services or contractors with a commercial builder’s license for construction works
• between $200,001 to $500,000 (including GST in value) – formal tenders must be sought from a minimum of 3 suitably qualified consultants for construction services or contractors with a commercial builder’s license for construction works
• for projects between $200,001 and $500,000 (including GST), it is preferred that schools seek tender prices from pre-qualified building contractors on the Construction Suppliers Register (CSR). For projects in this value range deemed to be high-risk, schools may be required by the VSBA to engage a contractor from the CSR.

For school-funded projects estimated to be $150,001 to $500,000 (including GST)

Stage 1: Seek approval from the VSBA to engage a consultant (where engagement is estimated to exceed $150,000 (including GST)

Schools are required to provide the following documentation to the VSBA:

• 3 written quotes or formal tenders (if consultant fee exceeds $200,001 including GST)
• quote or tender evaluation recommendation report based on consultant selection criteria
• completed conflict of interest forms (Conflict of interest form template available on the Resources tab)
• written request seeking approval to engage a consultant on a school letterhead (Approval to enter into consultant contracts template available on the Resources tab).

Stage 2: Seek approval from the VSBA to proceed to construction tender and tender evaluation

Schools are required to provide the following documentation to the VSBA:

• comprehensive request for tender (RFT) documentation, including but not limited to construction tender drawings and specifications (required RFT documentation confirmed by VSBA following project approval), DE approved contract template
• independent cost estimate for construction works (Pre-Tender Estimate/Cost Plan D)
• name of 3 proposed contractors the school wishes to invite to tender (preferably pre-qualified building contractors from the CSR)
• written request seeking approval to proceed to tender on a school letterhead (Approval to proceed to construction tender template available on the Resources tab)
• completed conflict of interest forms (Conflict of interest form template available on the Resources tab).

Schools shall only proceed to construction tender once the VSBA has provided formal written approval for the school to release the Request for Tender (RFT).

Stage 3: Seek approval from the VSBA to enter construction contract

Schools should establish a tender evaluation panel (consisting of members of school staff and/or school council representatives and consultants) to review the tender submissions and provide a recommendation for contract award based on evaluation criteria (that is, value for money, capability, capacity, program, risk and experience).

Schools are required to provide the following documentation to the VSBA:

• all tender submissions
• tender evaluation report
• conflict of interest forms from all involved parties (the school and consultants) (refer to Resources tab for Conflict of interest form template)
• forecast date for commencement and completion of construction works
• written request for approval to enter contract on a school letterhead (Approval to enter into construction contracts template available on the Resources tab).

Schools are required to provide the VSBA with an electronic copy of the fully executed construction contract.

Following VSBA approval to enter into construction contract, schools are required to provide the VSBA with an electronic copy of the fully executed construction contract.

Confidentiality and conflict of interest during the tender process

It is important that tender pricing remains confidential until the tender period has concluded, and construction contracts have been executed by both parties.

The school should form a tender evaluation panel (consisting of members of school staff and/or school council representatives and consultants) to review the prices submitted by building contractors.

It is also important that any real or perceived conflict of interest is avoided throughout the tender process. For all school-led projects, the following situations present a clear conflict of interest and must be avoided:

• members of school council and school staff (including relatives) providing pricing for goods/services
• individuals or businesses coordinating the process of obtaining pricing for works where they are also submitting pricing (this provides that individual or business with an unfair commercial advantage).

Schools should use the Conflict of Interest template (DOCX) and provide it to the VSBA when appropriate.

Refer to the School Council – Conduct and Conflict of Interest policy for information on school council obligations in relation to their Code of Conduct and conflict of interest.

Obtaining independent cost estimates – required for projects over $200,001 (including GST)

Prior to proceeding to tender for the construction works, schools with school-led projects estimated to be between $200,001 to $500,000 (including GST) must ensure that the estimated project cost is within available school funds and within the maximum amount specified in the approved project proposal form and VSBA business case approval letter. Schools must obtain an independent cost estimate for the project.

The cost estimate must be provided by an independent organisation, who will not be tendering or carrying out the actual construction works.

For example, if the school wishes to seek actual pricing from a builder for the construction works, that builder cannot provide an estimate to inform the project budget as they are not independent and will have an unfair advantage over other builders who submit their prices.

This independent cost estimate may be either:

• Cost Plan D – a breakdown of all construction works, and costs prepared by a qualified quantity surveyor.
• Estimate of probable costs – a breakdown of likely construction costs prepared by a consultant (architect or project manager).

VSBA assessment of documentation provided for approval to proceed to tender and contract for project delivery

When all documentation has been submitted, the VSBA will conduct a technical review of the documentation. VSBA Project Delivery Branch will assess whether the proposed works:

• comply with the department’s current Building Quality Standards Handbook (BQSH)
• are documented to a sufficient standard to enable the school to obtain accurate pricing from builders
• offer good value for money for the school.

Approval to proceed to tender

Once VSBA has assessed the independent cost estimates and supporting documents, the school will receive formal approval to proceed to tender, signed by the VSBA Project Delivery Manager.

Approval to enter a construction contract

When construction tenders have closed, the school and/or consultant should evaluate submitted proposals to determine the preferred contractor. The VSBA Project Delivery Manager can provide advice and template documents to assist the school with the tender evaluation process, if needed.

The school must seek approval to enter a construction contract from the VSBA Project Delivery manager with the preferred contractor before the school contacts the contractor and advises that they have been successful.

It is vitally important that tender pricing remains confidential until the tender period has been completed and construction contracts have been signed between the school and the successful contractor.

The VSBA Project Delivery manager will review the documents to ensure that:

• no conflict of interest, real or perceived, in accordance with the School Council – Conduct and Conflict of Interest Policy, exists between the school/school council and any of the tendering contractors
• correct procurement process was followed
• thorough tender evaluation process was followed.

Once the VSBA has completed the review, the school will receive formal approval to enter a construction contract, signed by the VSBA Project Delivery manager. The school or their consultant can then contact the preferred contractor and advise that they have been successful. Construction contracts must be signed between the school and the contractor and a digital copy provided to the VSBA before construction works can commence.

Insurance

The department has portfolio-wide insurance cover in place for construction risks and products and public liability related to construction works on school sites. Whilst all registered builders and tradespeople are required to have their own insurance policies in place, all works carried out on school sites are covered by the department’s Insurance for Schools Policy as well.

VSBA Project Delivery periodically updates the department’s insurer with a comprehensive list of all active government funded projects, as well as a list of current school-funded projects. This means that if there are serious issues during the construction of a school-funded project, the school’s builder may be able to draw upon the Insurance for Schools Policy rather than their own policy.

VSBA Project Delivery can provide the relevant insurance policy documents for inclusion in your construction tender and contracts as well as advice on insurance matters should the need arise.

Projects delivered by the VSBA

For projects delivered by the VSBA, the VSBA works in partnership with the school to deliver the approved scope of works throughout the project delivery stages, until the conclusion of the defect liability period.

If the school’s project is approved to be VSBA-led

School-funded projects delivered by the VSBA follow a similar approach to State Budget-funded capital works projects. This includes:

• an estimated 68-week duration for planning, design, and procurement (master planning, schematic design, design development, tender documentation, tendering and tender evaluation) to the commencement of construction, followed by a 12 month defects liability period after project completion.
• completion of a Form 15 area analysis which forms part of each design milestone review (noting that there may be additional over-entitled area being constructed)
• independent design and project quality assurance.

The school must transfer to the VSBA 10% of the school-funded project value at commencement and 90% prior to construction contract award.

For all projects delivered by the VSBA, schools are required to pay a PAMA fee of 5% of the total project costs.

Confirmation of available funds

For constructing or upgrading facilities, schools must provide written confirmation of available funds at the following project milestones:

• AMP Phase 2
• schematic design and design development (if applicable)
• tender documentation
• tender evaluation and contract award.

To ensure that all project transactions are captured in the VSBA’s project management system, the VSBA will make payments directly to consultants and contractors on behalf of the school.

Step 4: Completion of the project

Once practical completion has been achieved, the school must advise the Victorian School Building Authority (VSBA). This is regardless of the duration of the defects liability period.

After completing a school-funded capital project, schools must review and complete the steps under the school-delivered capital projects section of the School asset drawing changes checklist (PDF).

Resources

Forms and checklists

• School asset drawing changes checklist (PDF) – when changes to school facilities occur as a result of school-funded and led capital projects, schools must complete this checklist.
• Template 1 – School Council Declaration (DOCX)
• Template 2 – Approval to Proceed to Consultant Tender (DOCX)
• Template 3 – Approval to Enter into Consultant Contracts (DOCX)
• Template 4 – Approval to Proceed to Construction Tender (DOCX)
• Template 5 – Approval to Enter into Construction Contracts (DOCX)
• Template 7 – Conflict of Interest form (DOCX)

Good neighbour: Guide, checklist, and templates

• Good neighbour guide (PDF)
• Good neighbour checklist (DOCX)
• General building works letter template (DOCX) (staff login required)
• Information session letter template (DOCX) (staff login required)
• Traffic and parking letter template (DOCX) (staff login required)

Useful links

Building Quality Standards Handbook – sets the minimum quality criteria for all Department of Education capital projects, including new construction, refurbishment and maintenance works. Its purpose is to assist architects and designers to create high-quality designs for school facilities across Victoria.