Ambitious projects likely to be broken up and quality compromised following reassessment of college rebuilding projects

The decision to put more than 140 college building projects on hold across England could lead to the fragmentation of ambitious campus redevelopment plans and a potential drop in quality standards as colleges are forced to look for savings if works are to proceed.

That is the view of construction lawyer Tim Richards, who has experience of working with colleges across the East of England on their plans to transform college facilities to meet modern teaching requirements.

In total, 144 building projects are on hold - probably permanently - while funding is being reviewed by the Learning and Skills Council (LSC). Colleges believe they may have to write-off at least £170 million because of a reassessment of the way grant monies are now to be allocated.

Commenting on the situation Tim said: "Put simply, these colleges have been let down. Expectations were built up, based on representations the money was available, and now they have been left high and dry. Many of the colleges had spent significant sums with consultant teams working up plans, applying for approvals from the LSC and lining up property deals for surplus land in order to raise additional funds or for temporary decant arrangements. However, as a result of this policy shift towards external needs-related assessment, it is back to the drawing board for the vast majority of colleges.

"Colleges may still be able to get projects started but will need to determine priority needs which will not match original schemes. For those who cannot wait and decide to go it alone, it is to be hoped that colleges are not forced into looking for cheaper finishes to keep down costs. Either way it is certain that colleges will not be getting what they were originally expecting. Colleges going it alone will also need to ensure that consultants retained for such projects are properly appointed in accordance with EU regulations which could lead to yet further delay and cost."

Sir Andrew Foster, a former chief executive of the Audit Commission whose critical review into the handling of the grant making process by the LSC led directly to the resignation of its former Chair, reported that, between 2001 and 2009, the LSC had approved projects with a total cost of £5.8bn with a capital contribution from the LSC of £2.9bn. The 144 projects now on hold would have represented a further commitment of £5.7bn from the LSC.

For more information contact Tim Richards on 01908 247010 or click here to email him.