Major Capital Works Application Guide

This guide will help you complete a strong Major Capital Works grant application for the Start Strong Capital Works Grants Program.

As part of your application, you will need to prove you meet the eligibility criteria for this grant and address the assessment criteria. Major Capital Works grants are awarded after a competitive process.

Eligibility to apply for a grant does not guarantee the success of an application.

General information: Applicant details

What is the capital works address?

The Capital Works address is the site where your proposed project will take place. It is important for the department to understand what this address is, and whether a preschool is currently operating on the site.

  • Capital Works at the site your service is currently operating from. Some applicants may be operating an existing preschool and intend to undertake the capital works at their current site. In this case the service address will match the capital works address and you will be required to provide your current service approval ID (SE-XXXXXXX).
  • Relocating the service to the site of the capital works. Other applicants may currently be operating a preschool from a site, but intend to relocate the preschool to a different location, where the capital works would take place. In this case the capital works address will be the new site where you intend to relocate and undertake your capital works. You will also have to provide the service approval ID (SE-XXXXX) and current location of your service.
  • Opening a new service. The capital works address will be the address of the site where you intend to open a new service. Applicants applying to open a new service will have to present proof that they will apply to obtain service approval for the capital works site, once the project is finalised. The evidence presented can be a letter of intent signed by your committee, or proof of your submission if you have already applied.
  • Capital works on a NSW Government School Site. You will also be asked whether your capital works site is a NSW Government School Site. Please note you must hold a valid licence or lease to operate prior applying and you must also discuss your project with Schools Infrastructure NSW.

Assessment criteria: Capacity and capability for delivery

You are asked to demonstrate your capacity and capability to deliver your project within the expected timeframes and with reasonable or tolerable risks. Applicants that are able to demonstrate readiness to proceed will be prioritised.

Some of the elements that are assessed under this parameter are:

Readiness to proceed

Applicants that are able to demonstrate that they will be able to deliver the project within 24 months and that they have support from all parties (e.g. your landlord, Council, Committee, Schools Infrastructure NSW) and approval to proceed will be prioritised.

Suitable land arrangements for a ten-year period

You need to demonstrate your ability to provide a suitable project site and security instrument valid for the 10 year project period. You must own the land, or have a lease or licence for your desired site prior to applying for this grant.

If your land arrangements are not valid for a ten year period, you will be required to negotiate this with your landlord or lessor to comply with the 10-year post project requirements. More evidence about your land arrangements will be requested at Stage 2.

Ability to provide a security instrument

The provision of a security instrument is a precondition for funding and we encourage you to discuss this requirement with all relevant parties prior to submitting your application. Please see the security instrument information for further details.

The maturity of your proposal and how far along you are with your planning and project development

We will consider whether you are putting forward a mature, well-developed proposal that is ready to kick-off or whether you would benefit from further developing your plans prior to applying.

Assessment criteria: Increase in preschool places in areas of need and demand

You need to demonstrate that your project will deliver an increase in community preschool places in an area of need and demand. Please note whenever we refer to preschool places we mean per day or licenced places (and not 600-hour or per week places).

Need and demand

The department will conduct its own data analysis to assess the need and demand in the area of the proposed capital works project. This is evaluated based on your proposed capital works address.

Areas with a demonstrated shortage in preschool places and low SEIFA bands will be prioritised. SEIFA is the Socioeconomic Index for Areas Score that indicates how advantaged or disadvantaged areas are based on socioeconomic factors such as income, education, employment and skills/occupations. The lower the score or band, the more disadvantaged that area is. SEIFA by Local Government Area (LGA).

Other elements such as the percentage of not-for-profit services in your area or the percentage of Aboriginal population and disadvantaged children will also be considered.

Applicants invited to Stage 2 (invitation to apply) will be required to provide further evidence to justify the need and demand for community preschool places in the proposed area.

Increase in preschool places

Your project must increase the number of places allocated exclusively to community preschool your service offers per day.

What should I consider when calculating my proposed increase in community places?

In order to ensure your proposed increase in places is feasible, you will have to take into account the space and regulatory requirements for centre-based services. Please see Preschool Places Regulatory Requirements for more information.

Please note that the Regulatory Authority also considers your compliance history when assessing the number of preschool places per day you are approved for.

Guidance on preschool places by applicant service type

Relocating an existing service to a new site

There will be an increase in places if your licence at the new site is for more preschool places a day than the licence you hold at your current site.

What are my current preschool places?

For existing community preschools, your current places refer to the number of places per day you are licensed for as per NQAITS.

How do I calculate the increase in preschool places (i.e. the new places)?

Only count the places that will be additional to the number of places your service currently has (E.g. if you have 20 places per day in your current site, and will have 30 at the new site, your increase in preschool places is 10).

CURRENT PLACES: 20

NEW PLACES/INCREASE: 10

EXPECTED TOTAL PLACES: 30

Expected total places

Your expected total places are the number of community preschool places per day you expect to have as a result of the project.

This number should be the addition of your current community preschool places and the number of community preschool places you intend to create with your project or new preschool places (please see examples above).

Multipurpose preschools

An increase in places means that the project creates new places that are exclusively allocated to community preschool.

Places allocated to a preschool program within a Long Day Care setting are not community preschool places and do not count for the purposes of the increase.

What are my current preschool places?

Your current preschool places are the number of places within your existing licence that are exclusively allocated to community preschool (excluding the places used for long day care or preschool program within long day care). Your current number of preschool places will be different to the number of per day licensed placed recorded in NQAITS, as that number would include your Long Day Care places.

How do I calculate the increase in preschool places (i.e. the new places)?

Your increase in places is the number of places allocated exclusively to community preschool that you intend to create with your project.

For example:

Multipurpose ABC has 50 licenced/per day places recorded in NQAITS. Of these 50, 20 places are allocated exclusively to community preschool, and 30 are allocated to Long Day Care or a preschool program within the Long Day Care. Therefore, this service has 20 existing community preschool places.

The multipurpose intends to create 30 new places with this project, 10 of which will be allocated exclusively for community preschool, and 20 will be allocated exclusively for Long Day Care or for a preschool program within the Long Day Care setting. Therefore, the increase in preschool places for this applicant is 10.

After the capital works multipurpose will have 80 places per day as per NQAITS, however only 30 of these will be allocated exclusively to community preschool:

CURRENT PLACES: 20

NEW PLACES: 10

EXPECTED TOTAL PLACES: 30

Expected total places

Your expected total places should be the number of places allocated exclusively to community preschool at the end of the capital works project. Following the example above, the total number of community preschool places for Multipurpose ABC will be 30 (20 existing and 10 new).

The service’s licence as per NQAITS in this example will be 80 places post capital works, however this is not the number we are looking for as it includes the Long Day Care places.

Your responses should always only focus on places allocated exclusively to community preschool for the purposes of this application.

Existing services undertaking capital works at their preschool centre

What are my current preschool places?

For existing community preschools, your current places refer to the number of places per day you are licensed for as per NQAITS.

How do I calculate the increase in preschool places (i.e. the new places)?

Only count the places that will be additional to the number of places your service currently has (E.g. if you currently offer 20 places per day and intend to build a new classroom for 15 children per day with the project, your increase would be those 15 places).

CURRENT PLACES: 20

NEW PLACES/INCREASE: 15

EXPECTED TOTAL PLACES: 35

Expected total places

Your expected total places are the number of community preschool places per day you expect to have as a result of the project.

This number should be the addition of your current community preschool places and the number of community preschool places you intend to create with your project or new preschool places (please see examples above).

New services

What are my current preschool places?

Your current preschool places should be zero.

How do I calculate the increase in preschool places (i.e. the new places)?

The increase in preschool places will be the total number of licenced or places per day offered at the new service.

CURRENT PLACES: 0 (service not yet operational)

NEW PLACES/INCREASE: 30

EXPECTED TOTAL: 30

Expected total places

Your expected total number of places will be the same as the number of new places.

Assessment criteria: Accessibility and inclusion

You need to demonstrate whether your Capital Works project will provide and/or improve the provision of a culturally safe, accessible and inclusive educational setting for equity children. Equity children includes Aboriginal and/or Torres Strait Islander children, children from low income backgrounds and children with disability and additional needs.

You will be required to submit evidence to support your claims if you are invited to apply at Stage 2.

We may also consider whether your preschool is an Aboriginal Business or Social Enterprise, or whether you provide employment to these groups.

Assessment criteria: Value for money (Budget)

As part of the Start Strong Capital Works Program, the NSW Government has committed $62.1 million in funding to deliver 7,100 additional community preschool places across NSW. This budget is considered as part of grant assessment process and the value for money of your proposal is a key assessment criterion.

A number of elements are considered when assessing value for money, including the cost per place of your project. The cost per place is calculated by dividing the grant amount requested from the department excluding GST by the number of places you will create.

The more funding a provider contributes, either directly or via other funding sources, the lower the cost per place will be and the better the value for money will be.

For your Stage 1 application you must submit at least 1 quote obtained in the past six months to substantiate your budget. We understand you may not be able to obtain quotes for all the elements of your budget. However, at a minimum you should obtain a quote for the Capital Works component (i.e. your builder) and make reasonable efforts to seek quotes for all other elements.

If you are invited to apply in Stage 2 you must substantiate all other element costs with a recent quote.

Project income: What are my sources of funding?

The project income is comprised of the grant amount, the provider contribution, and any other external sources of funding.

All financial figures must be provided ex GST throughout this application.

The Grant Amount (mandatory field)

The funds requested from the NSW Government under the Start Strong Capital Works Grant (ex GST).

Provider Contribution (mandatory field)

This is your organisation’s contribution to the project, and must be at least 5% of the total cost of the project (ex GST). This can be comprised of school funds and/or loans.

Other external sources of funding (not mandatory)

This is any funding by parties other than the Start Strong Capital Works Grant and the Preschool applying for the grant (ex GST). It can include other grants from State, Federal or Local Government, donations from private or public organisations or in-kind services. In-kind services should be quantified as worth $0; for all other contribution types the amount contributed must be specified.

It is not mandatory to have other external sources of funding.

It is the applicant’s responsibility to confirm the availability and amount of funds contributed by any other sources or in-kind services. These amounts will not be funded by the department.

Applicants invited to Stage 2 will be required to provide evidence to prove the funds related the provider contribution and any external sources of funding are confirmed and available for use.

Income table

The table provided below is an example with fictitious information. In this example, the funding sources breakdown is as follows:

  • The total cost of the project or total expenditure is $647,000 ex GST.
  • Your requested Start Strong Capital Work grant amount is $250,000 ex GST.
  • The provider contribution is $90,000 ex GST
  • There are two other external sources of funding:
    • A Federal Government Grant, contributing $307,000 ex GST
    • In-kind services, which are always valued at $0.
  • The total project income (i.e. the addition of the Capital Works Grant, Federal Government Grant, In-kind Services and Provider Contribution) adds up to $647,000 ex GST. Therefore, the total project income matches the total project expenditure thus showing that the provider has raised enough funds to deliver the project.
Project income sources Type $ Amount (ex GST) Confirmed?

NSW Department of Education

Capital Works grant request

$250,000

No

Provider contribution

Preschool funds (must be min. 5% of total project expenditure)

$90,000

Yes

Provider contribution

Loan from <write name of lending entity here>

Not applicable

$0

Y/N

NA

In-kind services

<What services are you receiving & from whom>

Sydney Lawyers ABC is providing us in-kind legal services

$0

Yes

Other e.g. other grant program

<Contribution type and name of contributor>

Federal Government Grant – Building Better Regions Fund – Department of Infrastructure, Transport, Regional Development and Communications

$307,000

Yes

Other e.g. large scale donations

<Contribution type and name of contributor>

$0

Y/N

Project expenditure: What is my budget breakdown?

Your budget breakdown is the total cost of all project elements. You will be asked to provide a detailed list of your project expenses, that clearly demonstrates what sources of funding will be used to pay those expenses.

You need to list all the elements that comprise your total budget, including building expenses, professional fees, project management fees, administrative fees, contingency and any other relevant expense. The quotes you obtain should be itemised and reflect all these budget elements.

Contingency

It is recommended you include contingency as a project expense, to cover unforeseen circumstances, inflation or overruns. Please note that should any of these additional expenses arise, they must be funded by the approved provider.

Expenditure table

Please provide a breakdown of your budget expenses and the sources you will use to fund each item.

Project expenses $ Amount (ex GST) Source of funding used

Capital works extension works – builder costs

$250,000

$250,000

Capital Works Grant

Federal Government Grant


Project management fees


$50,000

Provider Contribution

Administrative expenses (e.g. Council approvals, DA)

$15,000

Provider Contribution

Professional Fees-. Legal services

$0

In-Kind services by Sydney Lawyers ABC

Professional fees (e.g. Engineer, Architect)

$20,000

Provider Contribution

Contingency

$57,000

Federal Government Grant


Other (e.g. landscaping)


$5,000

Provider Contribution

What elements can be funded by the Start Strong Capital Works Grant?

Please refer to the Guidelines for details on what elements of your budget can be funded by the Capital Works Grant.

When you are providing your budget breakdown on the expenditure table, ensure you are not nominating the Capital Works grant as the funding source for any ineligible elements as this will delay or impede assessment. If there is a portion of the build that will not be used primarily for the purposes of delivering preschool education (e.g. rooms allocated to community or health service), this will have to be funded by the provider or other sources of funding. You are required to identify the cost associated to these ineligible elements as per your quote and nominate an appropriate source of funding on the expenditure table.

Multipurpose preschools

This grant can only the fund the portion of your project that will result in an increase in community preschool places. You must demonstrate that build elements that are ineligible for funding will be paid for either by the provider contribution, or other sources of funding. If applicable, you are required to identify the costs associated to Long Day Care places in your quote, and nominate an appropriate source of funding on the expenditure table (noting these cannot be funded by the grant).

Budget totals

The total project income (your requested grant amount plus all other sources of funding) must be equal to the total project expenditure (the total cost of the project).

  • Total project income amount: (auto-calculation): $647, 000 excluding GST
  • Total project expenditure amount: (auto-calculation): $647,000 excluding GST
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