Drivers for whole life performance

The Labour government prioritised education and total capital investment in schools was expected to reach £5.1 billion in 2005-2006 as part of the 'Building Schools for the Future' programme.

A core objective of the 'Building Schools for the Future' initiative was 'building schools with a long term design life, and standards maintained to avoid the deterioration that has been seen in schools built in the past' (DfES 2004, Building Schools for the Future Questions and Answers).

Detailed guidance was issued by the DfES to develop design briefs to ensure that the priorities of the school can be met. The guidance incorporates the whole life cost approach. Building Bulletin 98 (BB98): Briefing Framework for Secondary School Projects advocated finding the 'right solution' which included: 'information gathering ... for each of the best options, including whole-life capital and revenue costs and design quality'.

In the same document (BB98) a key heading for the brief included 'budget, based on the likely gross area to be built and whole-life building costs' and design performance requirements included 'standards of construction (for example, lifespan requirements)'. Under developing the options it stated: 'It is also crucial that the cost of each option is compared, both in terms of initial capital cost and also the "whole-life" cost over at least 25 years.'

Department for Education and Skills

The Department for Education and Skills Guidance for applications for PFI credit support for projects aiming to sign in the financial years 2004-2005  included a section on value for money and stated:

'Factors that might increase a (PFI) proposal's attractiveness include ... reducing the overall life time cost to the public purse.' (page 10)

A number of options were given to achieve this including 'spend to save initiatives'.

Commission for Architecture and the Built Environment

The Commission for Architecture and the Built Environment (now merged with the Design Council) was a public body with a remit to promote good design. It targeted schools in a publication for Achieving well designed Schools through PFI which stated:

'Good design results from a creative process that should lead to simplification and, as a result, savings in whole life costs. ... A good design team will ensure that capital costs are competitive, and that savings can be achieved on running costs.'

Public Private Partnerships Programme (4Ps)

Public Private Partnerships Programme was a governmental agency advising local authorities on procuring projects on a PFI basis. Their guidance note (2004) for local authorities preparing The Outline Business Case stated that:

'All major projects must be supported by a robust business analysis or investment appraisal.'

The costs covered by an appraisal will typically include:

• capital costs;
• annual financing charges; and
• operating and lifecycle costs.

The same guidance note specifically considered running costs:

'For long-term partnership schemes, operating costs and lifecycle costs will be a significant cost component over the whole life of the project. It is important therefore that the options appraisal brings out as clearly as possible all operating and lifecycle cost elements to highlight the differences between options.'