School security

My client is a builder and he has been asked to build a new house in the grounds of a local private school. The new property will be occupied by the school caretaker as his main residence.

The house is being built from scratch on a plot of land adjacent to the school. The reason for the construction is because the school wants to enhance security by having someone permanently on site.

My question is whether the services of my client can be zero rated. The partners running the school seem to think so and the school is not VAT registered and is therefore unable to claim any input tax. However my concern is based on the two following points.

First the school will own the property rather than the caretaker so does this make it a commercial rather than a residential project? Second the school...