School of hard knocks for SMEs in education sector

Wright Robinson College, £30 million BSF build in Manchester by Morgan Ashurst

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Getting on a schools programme can help secure the future of a smaller company in this time of uncertainty

Building Schools for the Future projects are coveted jewels in a time of financial uncertainty, offering relatively secure business to a number of contractors.

It is no surprise then that companies have been competing hard to get on to the scheme since its inception in 2003. But in a swarm of big players, how can smaller and specialist companies get involved?

SMEs have been publicly welcomed by Partnerships for Schools (PfS), which runs the programme. There are plenty of opportunities, it told Construction News in July.

Yet finding out how to get on the first rung of the ladder has proved difficult for medium-sized contractors. Robinson and Sawdon is a Hull based contractor bought by James Deacon in 2006. His business has been vying for the role of main contractor on BSF schemes but has found a series of dead ends when it comes to getting started. He says: "We seem to hit a brick wall every time we go down an avenue of finding out how an SME can take part. At this moment in time we are struggling to get where we need to be."

Bidding as a main contractor is an ambitious option and may not be the most realistic – Local Education Authorities (LEAs) tend to pick up bids from heavyweight contractors such as Balfour Beatty and Willmott Dixon.

Forming a consortium with other SMEs is also great in theory but runs the risk of falling flat in practise. Andy Riggs, education officer at Rok, is sceptical of such a move.

"There'd have to be quite a lot of small contractors involved for them to afford maintenance costs," he says.

"My view is the only option for SMEs to be involved is to be a supply chain member."

Joining the supply chain PfS supports this approach. A spokeswoman says: "SMEs can add real value and experience to BSF as members of a supply chain. This means there are more opportunities for SMEs to demonstrate their USP and how they can add value to a BSF scheme".

Taking this route is the most practical solution for an SME and could also help in avoiding the lengthy pre-qualification process – just as roofing specialist Briggs Amasco did when it was approached by lead contractor, Taylor Woodrow, for a number of projects.

Nick Kershaw, Briggs Amasco's commercial director explains: "Taylor Woodrow asked us to act as a supply chain member to work on all three of its BSF contracts in Sheffield. You've got to stand out from the crowd and promote your speciality."

Many SMEs hold an advantage against bigger rivals by providing a personal touch. If this is imperative to your work ethic, becoming a supply chain member may not suit your company's dynamic, as Mr Deacon says: "With the big constructors, you've not got that client-contractor relationship. You've just got: 'what's yourbest price?' "

Mr Kershaw also laments this fact, saying the lack of contact with its ultimate client, Sheffield Council, as one of the biggest hurdles to overcome in subcontracting.

Your organisation will need to stand out from its peers so it is vital that your business makes promoting its unique selling point the number one priority.

Assess what your company can offer that no other can. Mr Riggs at Rok believes that making your team accessible is a key asset in impressing lead partners and local authorities.

"They welcome small and regional contractors because they are much better at community engagement and local involvement",
he says.

Approach your local authority and enquire who its partners and main contractors are. It's likely you will know the area better than a national contractor and if you have built up a good reputation, it is the best place to promote your skills close to home.

A tough procedure

PfS confirms: "Local authorities and lead partners will be looking for others who share their vision and will be a strong link in a supply chain for the BSF scheme."

Once you've bagged a BSF project, you may have to prepare to sweat. There will be a long road ahead with lists of procurement, approval and evaluating processes to get through before construction can start, as Mr Kershaw testifies.

"Initially the whole thing's quite tough and prolonged, but you get the rewards once it's successful," he says.

While Local Education Partners and supply chains are likely to be fixed up for wave one of secondary school developments, there are still opportunities within the following five waves. This could translate as an abundant source of opportunity for SMEs to get work.

Ensure your business gets work above other SMEs by following the advice from PfS. "Tap into the conference circuit, speak to as many Local Education Partnerships and main contractors as you can, and research local authorities' requirements."

To find out which wave your local authority fits in to, visit Partnerships for Schools' website at www.partnershipsforschools.org.uk.

BSF: THE FACTS

1. The BSF is a 10- to 15-year programme which launched in February 2003. At £45 billion, it is the Government's largest school investment programme in history.

2. More than half of local education authorities are involved with the BSF at this point, covering more than 1,000 UK secondary schools.

3. New facilities will be built for 50 per cent of the floor area in each school. Remaining funds ensure that 35 per cent of the school can be remodelled and 15 per cent refurbished.

4. BSF has a wide range of stakeholders with pupils, parents, governing bodies, the private sector and local authorities all holding a vested interest in the scheme.

5. The BSF process running up to construction stage takes around 30 months.

6. Schools designed under the BSF model use the Building Bulletin 1998 guide.

7. Half of schools in the BSF programme are funded through a Private Finance Initiative grant and the majority of remaining schools use capital funds.

8. For a list of BSF's supply chains in wave one, click on the resource box on the right hand side of the page

9. The penultimate wave in the programme (five) looks set to cover the most UK regions, with 18 areas listed so far.

To see progress tables for each wave, visit www.partnershipsforschools.org.uk/programme/progress.jsp