Download Presentation by Rod Mallinder

What are the Government’s future spending
plans and what will be its key criteria for funding
capital projects ?
Rod Mallinder
Secretary, Association of University Directors of Estates
And Director of Estate and Facilities Management, The University of
Brighton
Structure of presentation
Importance of university estates in attracting students
Commercial issues associated with current economic climate
– potential opportunities and pitfalls
Impact of economic situation on Government funding for HE
and
what will be the key criteria for funding capital projects ?
Implications for institutions in terms of the criteria to be used
Opportunities for better management of space
Long term implications of short term decisions
Current Economic Situation Commercial issues –
potential opportunities and pitfalls
Opportunities
Reductions in tender costs
Availability of contractors
Leasehold property available on better terms
Ability of some universities to bring forward local/regional
regeneration where commercial interest has fallen away
Potential pitfalls
Number of construction and related companies gone/going bust
Increased risk of dispute and ambush as some companies look
to short term survival instead of long term relationships
Risks arising from recovery in terms of :
Inflationary pressures and companies being unable to complete at
prices tendered
and
Scarcity of skilled labour
Impact of economic situation on Government funding
for HE and what will be the key criteria for funding
capital projects ?
Impact
Funding for 2009-2011 ?
Will there be any capital for 2011-2014 ?
Effect of a change of Government ?
Impact of economic situation on Government funding
for HE and what will be the key criteria for funding
capital projects
Criteria
Current Capital Investment Framework (CIF) lives on but
modified:
Greater emphasis on carbon reduction and space
utilisation
Implications for institutions in terms of the modified
criteria
Carbon reduction
Carbon plans (beware the base point)
Space utilisation
Misleading use of SMG tools to quantify “surplus
space and potential savings”
Important to understand the complex issues in
relation to space management in HE
CORPORATE
PLAN
Academic
Development
Plans
Update
Accommodation
Database
Space
Utilisation
Analysis
Valuation of
Properties
(incldg alt use)
Condition Survey
Update
Estimate of Running
Costs of Properties,
including Energy
Costs
Updating of an Estate Strategy
FINANCIAL
FORECAST
Articulation of
Requirements
Affordability
(capital and revenue)
Estimate of
Spatial
Requirements
Identification
of
Options
to
Solve Problems
Identified
Assessment
of
Fitness for Purpose
and
Identification
of
Problems
For example:
Improve utilisation.
Options
analysis
Send to
Funding
Council
ESTATE
STRATEGY
Implementation of
Proposals for
Improvements in
Space Utilisation
Disposals
Programme
Maintenance
Investment Plan
Change of use.
Refurbish/adapt.
Dispose.
Redevelop.
New
build/acquisition.
Relocation.
Energy Efficiency
Projects
Capital Programme
for
Major Refurbishment
New Build and/or
Acquisition of Property
Implications for institutions in terms of the additional modified criteria
space utilisation - the challenges
Corporate Plan Horizon v Estate Strategy Horizon
Changes in Government/Government Policy
Demographic fluctuations
Changes in how teaching is delivered/learning is received
Complexity of timetabling with modules offered
Misleading use of information however, there are
opportunities to manage space better
Opportunities for better management of space
Software tools for timetabling and resource allocation
Better understanding of the annualised cost of space
Use of space norms for space planning/space audits
Exploration of alternative ways of working
Financial decisions in a difficult economic climate
The long term implications of short -term decisions
Temptation to target estate funding
Importance of maintaining an environment that attracts students
Another cycle of “Backlog Maintenance” ?