Maximising budgets and reducing exposure in schools and colleges

Existing contracts

• Ensure you are aware of all contracts which are in place with third parties. Are all of these contracts still required, are you receiving the services you expected and will your requirements in relation to the services being provided change in the forthcoming academic year?  Planning ahead can save time and money in the long run.
• Make sure you fully understand both parties’ duties under all contracts with third parties, i.e. what the contract will deliver, what are your obligations under the contract, what will happen in default, and how the contract can be terminated. Being clear on these issues could avoid you being on the wrong end of a claim and/or ensure that you receive full services, and value for money, from third party suppliers.
• Check the termination provisions of any contracts/agreements you are considering terminating as early as possible. To ensure a valid termination notice has been prepared, consider what notice is required, how the notice period is calculated and how the termination notice must be served.   Planning ahead early will help ensure that contracts are terminated correctly and that any deadlines for serving notices to terminate are not missed, thereby ensuring that you are not “stuck” with a supplier contract for longer than required.
• Be prepared for the consequences if you terminate a contract, i.e. has an alternative contractor been sourced, has the transition been agreed, and how will existing relationships be affected.
• If you are entering into new contracts, consider who are you contracting with and the key clauses and terms, such as price, payment, termination and renewal terms. Check the language is clear and unambiguous and make a note of important dates and deadlines.  If anything is not clear, make sure that these issues are dealt with before the contract is signed.

Terms and Conditions

• Ensure your terms and conditions and contractual documents are all up to date, still accurately reflect your processes and procedures, and include everything which has been agreed between you and the parents (or third party supplier). Have any issues arisen during the course of the last year which mean your terms and conditions need to be reviewed and updated? Are any new contractual documents required?
• Check any updated terms and conditions and contractual documents have been correctly incorporated into the agreement between you and the parents. This is important as the contract between you and parents could be in place for in excess of 5 years.
• Check whether you are you contracting with, or planning to contract with, any of your suppliers on the basis of their terms and conditions? If so, you need to make sure that you are happy with the content of the terms and conditions are they are likely to form the basis of the contractual terms between the parties.

Sustainability

• Prioritize sustainability and make it a core part of your budget – sustainability is a long term commitment, but could have financial benefits.
• Evaluate old equipment costs and consider if old equipment, which is still working and in use, is costing more to run than if you replaced it and reduced running costs over the coming years.
• Invest in quality, but be prepared that purchasing products with longevity and quality are likely to be more expensive in the short term, but could ensure savings in the long term. For example, sustainable products may last longer, use less energy, water and materials, and produce less waste. They may also cost you less to dispose of at the end of their life.

By adopting these strategies, schools and colleges can better manage their budgets and reduce their exposure to risk (and the potential associate costs).

Our Disputes team regularly works with education providers seeking to resolve a variety of issues. If you need help, please get in touch.