School property project stages
Find information about your role as a school board during school property projects. All three stages are covered within this guidance and include duties like engaging a project manager, managing conflicts of interest and more.
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Boards have a governance role in project management. Your responsibilities are detailed here including the restrictions around delegation of duties.
For the project managers role, see Role of the project manager in school property projects.
- Developing a project brief
- Setting up a project file
- Engaging your project manager
- Appointing a school representative
- Appointing the project control group
- Engaging a full-time builder
- Ensuring all contractors are police vetted
- Managing any potential conflicts of interest
- Delegating project management functions
- Engaging parents
The project brief is a summary of the project, including the objectives, time frame and budget.
The first draft of the brief can be used to tender for a professional project manager. It should have enough information to:
- provide the scope and scale of the project
- provide bidding project managers a sense of what the role will involve
- confirm that all board members are agreed on the work to be done.
In developing the brief, you should consult with interested parties who will use the buildings and facilities, such as staff, students and parents.
If your school already has a project manager, such as under a long-term contract, they can develop and manage the brief from the start, with your input.
If your school has a development plan, it will contain some of the information you need for the project brief.
Checking the brief
The project manager will work with you on the brief as it is updated to check that the objectives are still being met and for approval from the board. Your delegate or the full board will need to sign this off each time.
You will need to set up a project file to store information about your project. This file includes the project brief and all other information such as:
- correspondence and emails
Your project manager will add to the project file as documentation is developed. Use the project management checklists to make sure all relevant documentation is included. At the end of the project, you will close the project file.
Obligations under the Official Information Act 1982
As a board, you are an agent of the Crown and bound by the Official Information Act 1982(external link) (New Zealand Legislation website). If a request is made under the Act, you must provide access to or copies of information in the project file that is relevant and appropriate to the request, unless there is good reason to withhold the information under the Official Information Act.
Does your project require building consent?
You must use a professional project manager. They will ensure all work complies with the Ministry requirements. Read more at Procurement to find out how to engage one using the Ministry’s procurement processes.
What if my project does not require consent?
You can use a non-professional project manager (e.g. board member or caretaker). You are still required to follow the Ministry’s project management requirements.
We recommend working with a professional property manager for projects of high value (even if they don’t need building consent), such as replacing all your carpet.
Find out more at Project manager engagement, including information about our Project Manager panels.
A school representative is someone appointed by the board to represent the school’s interests. They provide oversight on the project, monitor its’ progress and are a member of the project control group.
Your school representative must have a role or relationship with the school so that they can effectively represent the school’s interests.
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The project control group oversees your building project, and are appointed by the board.
It is likely to include:
- school principal
- project manager
- board chair or board representative
- school representative (who can be the same person as the board representative).
Project manager role
The project manager chairs the group. They meet at regular, pre-arranged times to:
- discuss project progress
- provide financial updates
- monitor the project objectives
- make recommendations to you for approval.
For small or less complex projects, the process is likely to be less formal. A project control group is still recommended for this supervising role.
The project control group decides on the communication lines for your building project. The following diagram demonstrates a typical arrangement:
Property management roles and functional relationships in a school building project
Schools, project management and consultants contribute to project management and relate to each other as members of the project control group. The Ministry and contractors each have lines of communication through members of the project control group.
A full-time builder for your project can be engaged as either a board employee or a contractor.
As a board employee
The scope of work must be:
- fully covered in their employment agreement
- in line with their collective or individual agreement.
You pay for their labour from your operational funding. You cannot charge these costs to the project.
As a contractor
If you engage the builder as a contractor, you must follow full project management processes for:
- design certification.
You must follow Ministry procurement rules when a builder engaged or employed by the school buys materials for building projects.
To find out if the builder needs to be licensed, go to licensed building practitioners(external link) (business.govt.nz website).
Every contractor who is likely to have unsupervised access to students at a school during normal school hours must be police vetted. The school board is responsible for determining the conditions of access for contractors and obtaining police vets.
A conflict of interest is when someone involved in a project has a financial or other interest in the project from which they can benefit or which will prevent them from acting impartially.
For example, there is a conflict of interest if:
- an architect on the board wants to tender for the design work
- a board member has a brother-in-law who is tendering for the construction work
- people involved in the project have a financial interest in a company or related company that is tendering for the work.
Generally, the project manager will arrange for everyone involved in the project to sign conflict of interest forms and a confidentiality agreement. If you are self-managing the project, you will have to do this.
Board members with financial interests in the project
A board member may have a financial interest in a contract you are entering into. If the value of this interest is over $25,000 a year, that member must apply for Ministry consent before:
- submitting a tender for the contract directly
- another party that member is associated with tenders for the contract.
Before giving consent, we need to be satisfied there is no risk of that member receiving preferential treatment.
If we give consent:
- the board member must be excluded during any board meeting when you discuss the project, as required in clause clause 15(1) of the Education (School Boards) Regulations 2020(external link).
- you must record their exclusion and the reason for it in the project file.
For more see:
- Conflict of interest management on school property procurements
- Chapter 3.3.5 of the Financial Information for Schools Handbook
To keep the project moving, you can delegate some of your board’s functions and powers for the project so that approvals can be done quickly, without having to wait for a full board meeting.
You can delegate board functions to:
- one or more board members
- the principal or any other employee(s) or board office holder(s) at the school
- a committee of at least 2 people, at least one of whom is a board member.
To delegate powers, you will need to make a formal board resolution agreeing to the:
- decision-making level to be delegated
- delegation level and scope.
You will need to give each delegate written notice of their delegation(s). Clause 8 of the Education (School Boards) Regulations 2020(external link) gives you the power to delegate in this way.
Points to remember when delegating powers and functions:
- you must record all delegations in the project file.
- you cannot delegate your board’s general power of delegation. This means you can’t ask anyone other than the board to make the delegations.
- as a board, you remain responsible for the actions and decisions of the delegate(s) acting under the delegation.
- you can revoke the delegation at any time.
- a person with a financial interest in the project cannot be a delegate.
You can only delegate financial functions to the school representative. Project managers:
- must not have any financial delegation for using school funds
- must have all project costs and expenses signed off by the school representative with financial delegation or the full board.
You can only give financial delegations through a board resolution. You must:
- set out the nature and conditions of the delegation in writing
- provide the delegation by notice to the delegated person(s), as required in clause 8 of the Education (School Boards) Regulations 2020(external link).
For more information about financial delegations, see chapter 3.3.18 of the Financial Information for Schools Handbook.
If a parent of a child at your school tenders for a contract, the relationship must be entirely professional. You should make sure:
- no one pressures the parent to give a good deal
- the parent is qualified for the job and supplies warranties that the work meets trade practice.
If you engage the parent to work on the project, you:
- should expect their work to be to a professional standard
- will need a process in place to deal with any situation where the contractor does not perform or performs poorly.
Having working bees for your project
You can hold working bees to get work done on your building project. However, if the project needs a building consent, you will have to engage a professional project manager to:
- confirm the scope of work
- sign off the completed construction.
- Giving board approval
- Keeping people at the school safe
- Getting local council sign-off
- Conflicts of interest that may arise
Board approval is required throughout various stages of the project. This may involve a full board meeting or approval by your delegate.
The approval stages include:
- approving the project brief
- approving the procurement plan and tender documents
- signing contracts for consultant engagement
- signing off on the designs
- approving any variations, for example in the material used or design changes
- approving payments.
Working with the design team
Your school representative will need to work with the design team at each stage of plan development to make sure they understand your vision for the project and the design meets your educational goals.
Boards are responsible under the Health and Safety at Work Act 2015(external link) to keep staff and students safe at all times.
Your project manager will help you meet your responsibilities by managing the day-to-day health and safety hazards during a project, including:
- keeping the construction site isolated from students and staff
- managing safe access of vehicles and materials
- using safe building materials
- managing contractors.
The project manager should meet regularly with you to report on and discuss safety issues.
If your project required building consent, you can't start using the new building until the local council has issued a code compliance certificate, or your project manager has already arranged a certificate for public use.
Be aware that you could be fined up to $200,000 a day for each day you allow anyone to use the building without a code compliance certificate.
A conflict of interest can arise during procurement or at any time in the project. Use the regular project meetings to discuss any potential conflicts.
- Complete the Building Update Form
- Accounting for project funds in your accounting system
- Returning any unspent project funds to us
- Closing the project file
- Discharging the project manager and disestablishing the project control group
- Meeting maintenance requirements
- Fixing any defects found after the end of the project
At the end of the project, you will be responsible for closing the project file, discharging the project manager and returning any unspent project funds to the Ministry.
Ensure that your project manager completes the Building Update Form at the end of the project. We use this form to update physical records and project items within K2 in preparation for capitalisation.
If K2 isn't updated, you won’t get the appropriate Property Maintenance Grant (PMG) funding, which is calculated based on the school’s buildings area.
In your accounting system, you must separately account for money you receive for property projects. Treat these funds as income. You hold the money on the Ministry’s behalf until you spend it.
To meet accounting requirements, you must:
- credit funds to a liability account when received
- keep a separate account for each capital works project — for financial management and control
- include a disclosure note, in the financial statements, on the amounts received and spent during the year for each project — you must do this even if there's no year-end liability.
Any unspent 5 Year Agreement (5YA) project funding will be available to you to use on other 5YA projects.
For all other Ministry-funded projects that come in under budget, you must return the savings to us. In this way, K2 has an accurate record of the actual project cost.
At the end of the project, you'll close the project file. You must:
- include all the final paperwork in the project file
- store the file securely — you'll need the guarantees it contains if a building defect becomes apparent
- keep the project file for the life of the building
- keep all procurement process records, including unsuccessful tenders, for 7 years under the Public Records Act 2005(external link).
Your project manager will close the project itself.
- doing a final inspection and post-occupancy evaluation
- sending documentation to the Ministry
- getting local council sign-off.
Your final task will be to discharge your project manager and disestablish the project control group.
Review the project manager’s performance and discuss any non-performance issues. If the project manager has a long-term contract with you, their performance will help you decide whether to continue the contract or not.
Typically, a product manufacturer guarantees its product will perform in a certain way for a set time. For example, a roofing manufacturer may guarantee that the roofing will be leak-free for 10 years. A warranty is the same thing as a guarantee.
Many guarantees are only valid if you maintain the building product in a certain way. For example, you may need to arrange for:
- annual cleaning of exterior cladding to prevent damage from moss and mould
- a qualified technician to carry out an annual inspection and maintenance of a heating system.
The project manager collects all the guarantee and maintenance care documents from the contractors and building suppliers for the school. You must include maintenance requirements for building products in the school maintenance programme.
If anyone finds defects after the project has been completed, check your maintenance programme. If the defect results from a lack of or inappropriate maintenance, you must pay for repairs from your Property Maintenance Grant (PMG).
If you believe the defects are caused by faulty products, workmanship or design, you must seek recovery from the designer and/or contractor.
For a relatively minor defect, such as a crack in the plaster coating on exterior cladding, you may simply ask the contractor to fix it. In this case:
- check the contract to see who is responsible for the repairs
- write to the contractor outlining the issue and requesting a meeting to discuss it.
Complex problems or issues that cannot be resolved directly
You may need to follow through with the dispute steps in the contract if:
- the contractor doesn't respond to your attempts at contact
- the issue can't be resolved
- the problem is complex.
Funding when you can’t get remediation
You may be unable to get remediation. For example, this may be because:
- the contractor refuses to pay, but
- you can't justify the need for third-party intervention or court action.
In these situations, the school representative can discuss with the Ministry how to fund the remediation work. You must use the procurement and project management process for the remedial work.
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