| 1. |
INTRODUCTION |
7 |
| 2. |
SUMMARY |
8 |
| 3. |
ECONOMIC ENVIRONMENT |
12 |
| 3.1 |
GDP |
12 |
| 3.2 |
INFLATION & INTEREST RATES |
13 |
| 3.3 |
UNEMPLOYMENT |
14 |
| 3.4 |
HOUSEHOLD CONSUMPTION |
14 |
| 3.5 |
HOUSING & CONSTRUCTION |
15 |
| 3.6 |
STERLING |
16 |
| 3.7 |
POPULATION PROFILE |
17 |
| 3.8 |
CONCLUSIONS |
18 |
| 4. |
EDUCATION MARKET OVERVIEW
- PRIMARY/SECONDARY |
19 |
| 4.1 |
OVERVIEW - ENGLAND AND WALES |
19 |
| 4.2 |
OVERVIEW - SCOTLAND |
21 |
| 4.3 |
NORTHERN IRELAND |
22 |
| 4.4 |
TYPES OF SCHOOL IN ENGLAND AND WALES |
22 |
| 4.4.1 |
Maintained |
22 |
| 4.4.2 |
Other Types of School |
24 |
| 4.5 |
EDUCATION FUNDING |
27 |
| 4.5.1 |
Department for Education and Skills (Dfes) |
28 |
| 4.5.2 |
The 2004 Budget |
29 |
| 4.5.3 |
LEAs - Structure and Responsibilities. |
30 |
| 5. |
EDUCATION MARKET OVERVIEW
- HIGHER EDUCATION |
32 |
| 5.1 |
OVERVIEW |
32 |
| 5.1.1 |
Student Growth |
32 |
| 5.1.2 |
Tuition Fees |
33 |
| 5.2 |
HIGHER EDUCATION FUNDING |
35 |
| 5.2.1 |
Funding Structures |
35 |
| 5.2.2 |
The 10 Year Science Plan |
38 |
| 5.2.3 |
Hefce Funding for England |
38 |
| 5.2.4 |
SHEFC Funding for Scotland |
39 |
| 5.2.5 |
WHEFC Higher Education Funding Council for
Wales |
40 |
| 5.3 |
OTHER SOURCES OF INCOME |
41 |
| 5.3.1 |
Charitable Trusts |
41 |
| 5.3.2 |
Endowment Funds |
43 |
| 5.3.3 |
Research Funding |
43 |
| 6. |
CONTRACTORS OUTPUT IN THE
UK EDUCATION SECTOR |
47 |
| 6.1 |
TOTAL CONSTRUCTION OUTPUT |
47 |
| 6.1.1 |
New Work |
47 |
| 6.1.2 |
Repair, Maintenance & Improvement (RMI) |
49 |
| 6.2 |
EDUCATION - NEW WORK OUTPUT |
50 |
| 6.3 |
CURRENT EXPENDITURE BY THE DFES |
52 |
| 6.4 |
CAPITAL EXPENDITURE IN SCHOOLS |
53 |
| 6.4.1 |
Schools - Types of Capital Fund |
54 |
| 6.4.2 |
Building Schools for the Future |
55 |
| 6.4.3 |
Design Issues |
57 |
| 6.4.4 |
School Sports Infrastructure |
60 |
| 6.5 |
CAPITAL EXPENDITURE - UNIVERSITIES AND
COLLEGES |
60 |
| 6.5.1 |
University Estates |
60 |
| 6.5.2 |
Capital Expenditure Levels |
61 |
| 6.5.3 |
University Capital Building Programmes |
61 |
| 6.5.4 |
University Infrastructure - Student
Accommodation |
67 |
| 6.5.5 |
University Infrastructure - Sports
Infrastructure |
70 |
| 6.5.6 |
University Infrastructure - Science/Business
Parks |
71 |
| 7. |
PROCUREMENT AND FUNDING OF
EDUCATION WORK. |
74 |
| 7.1 |
OVERVIEW |
74 |
| 7.2 |
THE PRIVATE FINANCE INITIATIVE (PFI) |
75 |
| 7.2.1 |
Characteristics of PFI |
76 |
| 7.2.2 |
Organisational Structure of PFI |
77 |
| 7.2.3 |
Size of the PFI Market |
77 |
| 7.2.4 |
Progress To Date |
77 |
| 7.2.5 |
Advantages and Disadvantages of PFI |
78 |
| 7.2.6 |
Contractor Involvement in PFI |
81 |
| 7.3 |
THE SCOPE FOR PFI/PPP IN THE EDUCATION SECTOR |
83 |
| 7.3.1 |
PFI in the Higher Education Sector |
85 |
| 7.3.2 |
The Role of the Private Sector in Education
Schemes |
85 |
| 7.3.3 |
Investment Companies and PFI |
86 |
| 7.3.4 |
LIFT in Education |
86 |
| 7.3.5 |
Batching Contracts |
88 |
| 7.4 |
PROBLEMS OF PFI IN EDUCATION PROJECTS |
89 |
| 7.5 |
PFI - FUTURE PROSPECTS AND KEY DRIVERS: |
90 |
| 7.6 |
FUTURE TRENDS IN EDUCATION WORK PROCUREMENT |
91 |
| 8. |
CONTRACTOR PROFILES |
92 |
| 8.1 |
STRUCTURE OF THE CONTRACTING INDUSTRY |
92 |
| 8.2 |
CONSOLIDATION AND MARKET ACTIVITY |
94 |
| 8.2.1 |
Consortia |
94 |
| 8.3 |
MAJOR CONTRACTORS INVOLVED IN THE EDUCATION
SECTOR |
96 |
| 8.4 |
OTHER CONTRACTORS INVOLVED IN THE EDUCATION
SECTOR |
111 |
| 9. |
CONCLUSIONS |
116 |
| 9.1 |
OVERALL MARKET |
116 |
| 9.2 |
KEY TRENDS |
116 |
| 9.2.1 |
Overall Trends |
116 |
| 9.2.2 |
Education Market - Schools Sector |
117 |
| 9.2.3 |
Education Market - Higher Education Sector |
117 |
| 9.2.4 |
Contractors Output in the UK Education Sector |
118 |
| 9.2.5 |
Specification and Procurement in Education
Construction |
119 |
|
APPENDIX 1 - DEVELOPMENT AND CONTRACT
OPPORTUNITIES WITHIN THE EDUCATION MARKET |
121 |
| TABLES
& CHARTS |
| TABLE 1 |
DFES SPENDING 2002 - 2006 (£BN) |
9 |
| CHART 2 |
INTEREST RATES AND INFLATION (RPI) FROM
1990-2005 |
13 |
| CHART 3 |
PDI & SAVINGS RATIO 1980-2005 |
15 |
| TABLE 4 |
EXCHANGE RATE FLUCTUATIONS 1997-2004 -
DOLLARS, AND THE ECU TO THE POUND STERLING, SPOT RATES |
16 |
| CHART 5 |
AGE DISTRIBUTION OF THE RESIDENT UK
POPULATION 2001 ('000) |
17 |
| TABLE 6 |
EDUCATION ESTABLISHMENTS BY TYPE IN THE UK -
2003 |
22 |
| TABLE 7 |
ACADEMIES IN DEVELOPMENT (AT IMPLEMENTATION
OR FEASIBILITY STAGE) MAY 2004 |
25 |
| TABLE 8 |
GOVERNMENT DEPARTMENTAL EXPENDITURE -
2002-2006 (£BN) |
28 |
| TABLE 9 |
DFES SPENDING 2002 - 2006 (£BN) |
28 |
| CHART 10 |
PERCENTAGE DISTRIBUTION OF LOCAL AUTHORITY
EXPENDITURE IN SCHOOLS 2003 |
29 |
| TABLE 11 |
FORECAST EDUCATION SPENDING 2005-2008 (£BN) |
30 |
| TABLE 12 |
NUMBER OF HE STUDENTS IN THE UK 1998-2007 |
33 |
| CHART 13 |
SOURCES OF FINANCE FOR UNIVERSITIES AND
COLLEGES 2002/03 |
36 |
| TABLE 14 |
ENGLAND - INCOME AND EXPENDITURE FOR THE
ENGLISH HIGHER EDUCATION SECTOR (£M) 2000 - 2007 |
37 |
| TABLE 15 |
HEFCE ENGLAND FUNDING 2004-05 - TOP 10
UNIVERSITIES |
39 |
| TABLE 16 |
SCOTLAND SHEFC FUNDING 2004-05 - TOP 5
UNIVERSITIES |
40 |
| TABLE 17 |
SCIENCE AND RESEARCH FUNDING 2002-03 -
2005-06 (£M) |
44 |
| CHART 18 |
SOURCES OF RESEARCH INCOME FOR UNIVERSITIES
AND COLLEGES 2002/03 |
44 |
| TABLE 19 |
SRIF CAPITAL INFRASTRUCTURE AWARDS 2002-2004
(£M) |
46 |
| CHART 20 |
VALUE OF CONSTRUCTION OUTPUT NEW WORK
1990-2003 (£ BILLION) |
47 |
| TABLE 21 |
CONSTRUCTION NEW WORK OUTPUT BY SECTOR
1993-2003 (£ BILLION) AT CURRENT PRICES |
48 |
| TABLE 22 |
RMI EXPENDITURE BY TYPE OF EDUCATIONAL
ESTABLISHMENT (£M) 2002/03 |
50 |
| TABLE 23 |
CONTRACTORS' OUTPUT OF EDUCATION SECTOR NEW
WORK 1993-2003 (£M) |
52 |
| TABLE 24 |
FORECAST EDUCATION SPENDING 2005-2008 (£BN) |
53 |
| TABLE 25 |
BUILDING SCHOOLS FOR THE FUTURE - FIRST WAVE
OF PROJECTS 2005-06 |
55 |
| TABLE 26 |
ENGLAND - EDUCATION CAPITAL EXPENDITURE
2001-2007 |
61 |
| TABLE 27 |
UNIVERSITY OF CAMBRIDGE - ESTATE &
CAPITAL BUILDING PROGRAMME |
62 |
| TABLE 28 |
UNIVERSITY OF OXFORD - ESTATE & CAPITAL
BUILDING PROGRAMME |
63 |
| TABLE 29 |
UNIVERSITY OF DURHAM - ESTATE & CAPITAL
BUILDING PROGRAMME |
63 |
| TABLE 30 |
UNIVERSITY OF EDINBURGH - ESTATE &
CAPITAL BUILDING PROGRAMME |
64 |
| TABLE 31 |
LOUGHBOROUGH UNIVERSITY- ESTATE & CAPITAL
BUILDING PROGRAMME |
64 |
| TABLE 32 |
UNIVERSITY OF BATH - ESTATE & CAPITAL
BUILDING PROGRAMME |
65 |
| TABLE 33 |
IMPERIAL COLLEGE - ESTATE & CAPITAL
BUILDING PROGRAMME |
66 |
| TABLE 34 |
UNIVERSITY COLLEGE LONDON - ESTATE &
CAPITAL BUILDING PROGRAMME |
66 |
| TABLE 35 |
MAJOR UNIVERSITY SCIENCE PARKS IN THE UK |
73 |
| TABLE 36 |
COMPLETED PFI SCHEMES BY SECTOR |
78 |
| TABLE 37 |
MAJOR CONTRACTORS - NUMBER PFI CONTRACTS BY
CAPITAL VALUE (£M) 2003 |
82 |
| TABLE 38 |
MAJOR COMPLETED PFI EDUCATION SCHEMES BY
CAPITAL VALUE (£M) |
84 |
| TABLE 39 |
CIVIL ENGINEERING CONTRACTORS - BY NUMBER OF
EMPLOYEES 2002 |
93 |
| TABLE 40 |
LEADING EDUCATION CONTRACTORS AND PRINCIPAL
CONSORTIA |
95 |
| TABLE 41 |
ALLENBUILD - CAPABILITY IN THE EDUCATION
SECTOR |
96 |
| TABLE 42 |
BALFOUR BEATTY - CAPABILITY IN THE EDUCATION
SECTOR |
98 |
| TABLE 43 |
BOVIS LEND LEASE - CAPABILITY IN THE
EDUCATION SECTOR |
99 |
| TABLE 44 |
GALLIFORD TRY - CAPABILITY IN THE EDUCATION
SECTOR |
101 |
| TABLE 45 |
M J GLEESON - CAPABILITY IN THE EDUCATION
SECTOR |
102 |
| TABLE 46 |
HBG - CAPABILITY IN THE EDUCATION SECTOR |
103 |
| TABLE 47 |
INTERSERVE - CAPABILITY IN THE EDUCATION
SECTOR |
104 |
| TABLE 48 |
JARVIS - CAPABILITY IN THE EDUCATION SECTOR |
105 |
| TABLE 49 |
KIER - CAPABILITY IN THE EDUCATION SECTOR |
107 |
| TABLE 50 |
LAING INVESTMENTS - CAPABILITY IN THE
EDUCATION SECTOR |
108 |
| TABLE 51 |
MOWLEM - CAPABILITY IN THE EDUCATION SECTOR |
109 |
| TABLE 52 |
WATES - CAPABILITY IN THE EDUCATION SECTOR |
111 |
| TABLE 53 |
CONTRACT OPPORTUNITIES IN THE EDUCATION
SECTOR |
121 |