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 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 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
- 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 and Ministerial Order No 1280 – Constitution of Government School Councils 2020 .
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 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 (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 (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 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 (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 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 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 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
- Ministerial Order No 1280 – Constitution of Government School Councils 2020
- Planning and Environment Act 1987
- Project Development and Construction Management Act 1994
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
Reviewed 13 January 2026