Board Governance Checklist for School Facility Projects

A school facility project is one of the largest financial undertakings your board will oversee. Strong governance practices protect your organization, your students, and your mission. This checklist walks through the key oversight responsibilities at every phase, from initial feasibility through project completion. Strong boards include independent directors with a mix of K-12 and business experience, with most members unaffiliated with senior management.

Pre-Project Phase

Foundational alignment and feasibility before the project begins.

• Confirm the project aligns with the approved charter
• Verify enrollment projections and actuals
• Establish reporting cadence for student recruitment, enrollment, and retention
• Determine the type of facility project to pursue (lease, purchase, new construction)
• Finalize financial feasibility analysis
• Assess organizational capacity to manage the project
• Establish a clear decision-making framework and approval thresholds
• Finance Committee formed (min. 3 members with financial/real estate expertise)
• Facilities Committee formed (mix of board members and construction/real estate advisors)

Planning Phase

Develop the project budget, timeline, and governance structure.

• Detailed project budget developed (include 10% contingency minimum)
• Comprehensive project timeline created with key milestones
• Communication protocols established (reporting schedule, board updates)
• Required committees formed and meeting cadence set
• Roles and responsibilities clearly defined for all stakeholders
• Approval thresholds documented (e.g., board approval >$50K, dual signatures >$10K)
• Legal review process defined for contracts over threshold amounts
• Contingency planning process in place

Entitlements & Construction

Active oversight during permitting, entitlements, and construction phases.

• Regular review of project reports (monthly or per milestone)
• Key performance indicators monitored (schedule, budget variance, change orders)
• Strong documentation maintained (meeting minutes, decision log, change orders)
• Proper approvals secured at each stage (permits, board, finance committee)
• Regular stakeholder communication maintained
• Debt service coverage ratio monitored (target >1.20x)
• Days cash on hand tracked (ideal: 90+ days; minimum: 60 days)
• Change order frequency and magnitude reviewed with Finance Committee
• Contractor performance evaluated on schedule and quality

Completion Phase

Final steps to close the project and capture lessons learned.

• Final cost reconciliation completed
• Contractor performance formally evaluated and documented
• Lessons learned documented for future reference
• Policies and procedures updated based on project experience
• Ongoing maintenance plan established and budgeted
• Insurance coverage confirmed and updated for the new/renovated facility
• Final board report presented with full project summary

Board governance best practices for facilities

In addition to the phase-specific checklist items above, boards should maintain these governance practices throughout any facility project:

• Lead all growth decisions: The board, not management alone, should drive decisions about facility expansion, relocation, or new construction.
• Financial oversight: Review the five-year financial model with facility costs, DSCR projections, and M&O budgets at every board meeting during the project.
• Expert capacity: Recruit board members or advisors with real estate, finance, or construction expertise. Your school leader should focus on instruction, not managing contractors.
• Document everything: Post recent board minutes and agendas publicly on your website per state regulations for open meeting laws. Lenders will check.
• Risk management: Ensure the project does not jeopardize the school's core mission or financial stability. Have a contingency plan if enrollment projections are not met.