Prisons and schools programmes face changes

Government-imposed changes to big public sector building programmes feature in two of Building’s main stories this week.

First, the framework contractors on the £2.3bn prisons programme are said to be in discussions over contract changes which will allow the government to claw back the cost of housing prisoners elsewhere should jobs overrun. Currently the prison service can claim for financial loss but has to prove the amount, whereas this would pre-set levels of damages.

A director from one of the framework contractors, which are Kier, Wates, Willmott Dixon, Shepherd, Caledonian, Interserve, Shaylor and Morrison, told Building: ‘We’re talking about a level of damages that we don’t have on any other contract.’

Second, Building reported on proposals from the Department for Children, Schools and Families (DCSF) to revise the Building Schools for the Future (BSF) programme. A consultation document suggests new ways of prioritising which schools get built.

At the moment, authorities must apply to be part of successive ‘waves’. The new timetable, which is due to be announced early next year, will take into account other community developments, regeneration and sustainable development areas and allow councils to apply when they are ready, rather than in waves. This could accelerate the programme, meaning more work, sooner for contractors.

The changes will be the latest in a series designed to improve the efficiency of the BSF programme, which has got off to a much slower start than planned. It is the first time that DCSF has intervened.