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Cost and Process Guidance Appendix 1

CAPITAL TASK GROUP


Release: Final Date:16th September 2009

Author: Kevin Moir, Capital Project Director, Oaklands College

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Contents
1 Disclaimer .................................................................................................................................. 5 2 Executive Summary ................................................................................................................. 5 3 Glossary of Terms .................................................................................................................... 9 3.1 What is a Programme or a Project...................................................................................... 9 4 Employment ............................................................................................................................ 10 4.1 Core Team ........................................................................................................................... 10 4.2 Supplementary Appointments ........................................................................................... 12 4.3 Main Contractor ................................................................................................................... 12 4.3.1 Forms of Procurement............................................................................................. 12 4.3.2 Procurement Options available for construction .................................................. 13 5 Whole Life................................................................................................................................ 19 5.1 RIBA Stages ........................................................................................................................ 19 6 Cost Impact and Assessment ............................................................................................... 21 6.1 Professional Fees ............................................................................................................... 21 6.1.1 Professional Fees Expenditure Table in Percentage Terms and By RIBA Stage ................................................................................................................................... 23 6.2 Development Costs............................................................................................................. 24 6.2.1 Projects at RIBA Stage D/E .................................................................................. 24 6.2.2 Projects Pre-RIBA Stage C, Starting Out, or Refurbishment ........................... 34 6.3 Property the Wider Issues .......................................................................................... 38 6.4 Whole Life Costs ................................................................................................................. 40 7 Governance ............................................................................................................................. 43 7.1 What is a Programme or a Project.................................................................................... 44 7.2 Levels of Governance......................................................................................................... 44 7.3 Documentation to Support Governance ........................................................................... 44 KME Consultancy Ltd | 2

7.3.1 Project Execution Plan (PEP)................................................................................. 45 7.3.2 Room Data Sheets (RDS)....................................................................................... 45 Annex A Acknowledgements and References ................................................................... 46 Annex B Glossary of Terminology........................................................................................ 47 Appendix 1 - Abbreviations................................................................................................... 47 Appendix 2 Roles and Responsibilities ........................................................................... 48 Annex C - RIBA Stages ............................................................................................................ 50 Annex D Professional Fees Through RIBA Stages against a Construction Cost .......... 53 Annex E - Elemental Analysis of Costs .................................................................................. 54 Annex F Project Execution Plan (Example Headings) ...................................................... 55

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Authors Comments This document has been reviewed by the Task Group with very positive feedback on the content and a number of ideas have been proposed which will be incorporated within the future document. Along with the feedback further reference sites have materialised one of which is the LSCs website http://designguidance.lsc.gov.uk/ , this site provides a basic guide to design and process. On consideration of the feedback and the LSC website it is felt that this document falls between a simple guide and technical guidance for estates programmes/projects. The content of the document provides the detail which is sufficient to support Colleges in the principles of an estates programe/project but also contains a more technical level of information that will assist in what approaches should be undertaken to achieve a cost effective (nuggets of design control) and delivery focused rigor through effective governance. It is therefore, envisaged that this document is divided into two parts when re-written providing appropriate guidance for the reader at any level of experience. To assist the reader in reviewing the tangible impact on cost and time through this document, the use of symbols in the margins has been applied. This document should be seen as a live document and the content reviewed on a regular basis to confirm validity against current thinking and rates.

Note: = reference to savings or expenditure = reference to time increase or savings

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1 Disclaimer
Although every effort has been made to provide accurate content within this report, the author and any of the individuals or organisations who provided information, make any warranty, expressed or implied, or assume any legal liability or responsibility for the accuracy or completeness of any information contained on in this report. Additionally the author cannot be held responsible for the contents of any pages referenced by an external web link. Reference herein to any company does not necessarily constitute or imply its endorsement or recommendation or any preference to these organisations. The author also wishes to make the reader aware that this document is a guidance document not one that should be seen as the procedural or policy document for the LSC/DCSF/SFA/YPLA or any other government organisation.

2 Executive Summary
The Capital Task Group (CTG) was initiated as an action group with a short term of tenure considering the impact on the sector of the withdrawal of grants. This report on cost and how to achieve savings is one of the areas that the CTG at the initial meeting held on the 10th July 2009 felt was required to compliment the report on financial matters. Two meetings have been held 10th and 23rd July 2009 and reports for those meetings are available. This report is the output from all the meetings held with Consultants (framework and beyond), contractors (Leadbitter, BAM, Millers, Balfour Beatty, Vinci and UK Constructors Group) and other interested parties (RIBA/Client Forum) who have all contributed in providing points of view on how costs and cost saving can be achieved in major building or refurbishment programmes/projects The content within the report is to provide guidance, as an additional reference for the tool box when approaching programmes/projects. The report is primarily focused on construction programmes/projects however this is not exclusively the case, many of the principles contained within this report can support you in other types of programmes/projects. Any building programme new or refurbished must follow the necessary due diligence of an estates strategy which understands the needs and long term goals of the organisation and board. The strategy should understand the needs of the client base (the students) and the ability for the staff to have the tools and environment which will allow them to deliver a quality educational experience.

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One of the prime considerations when considering a major building or refurbishment project is the overall impact on the entire educational establishment including impact on staff, timetabling and overall resource management, through to working practises and long term educational provision. Knowing what you want to achieve is half the battle of knowing what you can build and why? Saving costs in any development is achievable at any stage of the design. The level of saving is dependent on what you the client are willing to agree to and where in the design process or delivery process you currently are. Most projects can achieve savings through Value Engineering (VE), standardisation of products, collaboration with other developments in the area to maximise buying power (economies of scale) and/or conservative design from the outset. The level of saving can vary and be as much as 30%. Through this document the LSC cost model has been used as the reference /m2 rate as a guide for costs, but it is the client who agrees to whether this amount of expenditure is used. Also some developments will have an unusual amount of abnormal costs above the level included in the LSC cost model. Therefore the context of savings is dependent on the client and the expectations of the development. Within this report detail of how the reader can approach maximising cost savings is discussed however, there is further work required over the life of the programme to assess cost savings on a project by project basis and with the involvement of key technical and delivery experts. Any approach undertaken should be an all inclusive approach to ensure that all concepts of cost saving is both financially and technically viable. To achieve cost savings the following should be considered when reviewing your individual projects; Simplification of design will maximise potential savings, for example: the space will be maximised if the design has no intricate wall designs, 900 angles in corners, supports maximum use of space. Areas to consider include; Standard bay sizes in support of the external elevation design and common column spacing throughout, as far as possible. Materials for the internal walls, standardised doors, standardised light fittings (note these areas also effect the long term operational costs post completion), use of glass internally, type and number of lifts, style and type of stairs. Significant examples include; The Mechanical and Electrical (M&E) design, this can be as much as 30% of your construction costs, if you are able to make a 30% saving in the design and subsequent material costs and labour costs for the installation, you make a 10% saving on your overall construction bill. Also the use of demountable walls (these can cost circa 35k per wall), replacing that same space with a permanent wall will cost circa 7k, how many times can you knock a hole in that wall the same size as a demountable wall and then reinstate the wall. KME Consultancy Ltd | 6

Potentially you could change this out every 5 years and see 25 years of life for the same cost of a demountable wall?). Life costs of materials used - know in broad terms what you will use a space for and appreciate the types of materials used, it is not worth paying 50% more for a type of material that has a life expectancy of 10-15 years when you will possibly change that space out in 5 years time, flooring material is a typical example of this. The inclusion of IT is to be considered carefully. IT provides a number of additions to a College; meeting the needs of students in the future and their method of learning, but also the use of the IT infrastructure to manage a building more intelligently as an example. All of the IT uses come at a tangible cost. There are examples of success in the use of IT and savings can be made by the inclusion of technology to run a building, however, there is the loss or burden factor to be considered. When taking on all the additional IT facilities available question whether you have internally the skill set to maximise the facility and therefore receive the savings that potentially is available. You therefore incur an initial and recurrent training overhead for staff to ensure maximisation of savings potential. Audio Visual Aids are another area which currently is maximising IT, but again, are staff trained sufficiently to maximise the potential. Maximising technology should not be a burden to the organisation; a robust IT infrastructure must provide flexibility for the future without the prospect of higher long term support costs. The IT strategy should not be built around what are the latest and sexiest tools available, but it should be built on requirement/necessity as opposed to wants! The strategy also needs to acknowledge the requirement to be future proof, which can be easily accommodated during the design stage by creating the appropriate trunking/ducting system in a new build to facilitate this expansion in infrastructure. The consideration of cost is explored further within the detail of the report and the above is to provide you with an indication of areas to be considered when looking at your individual project for a new build. The area of refurbishment is slightly more complex but again should be tied into a clear estates strategy. Refurbishments will require a surveyor to assist in the consideration of your current estate. Refurbishments can cost between 30% and 75% /m2 of a new build depending on what your approach is. The building to be refurbished needs to be completely appraised as age will provide you with an appreciation of the work that will need to be undertaken. Another advantage of a refurbishment is the impact/lot less onerous with regards to planning or not as the case maybe in some instances and will be dependent on local feeling towards your buildings; are they listed, of significant interest to the community, how much refurbishment you require to undertake. All of this determines the level/limitation to planning.

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During the review of refurbishment viability consideration of whether the building conforms to current building regulations and legislation will provide a clear picture of what your commitment (costs) might be. Have you an asbestos register for the building and is it extant, is the electrical wiring up to date or will the building require a new rewire. Is the structure of the building sound, will you take it back to the frame and build out? All of this determines the cost you will incur, along with the logistical requirements of keeping the campus operational during the refurbishment. i.e. temporary accommodation etc? In the section on refurbishment this is discussed in further detail. Refurbishments can become an endless pot of money if the building and subsequent development is not fully interrogated and understood. As mentioned, major refurbishments must be based on a clear strategy rather than fire fighting short term needs of the organisation. Cost saving is an emotive subject as this will impact on the expectation of the client and other stakeholders. Your vision of your Colleges buildings for the future will be impacted upon. There are areas that Government are pressing for standards and regulations, such as the green issue and its expectation of the future. The need to become carbon neutral for all public sector buildings in the up and coming years. Local authorities expect all new buildings to be BREEAM excellent rated and that in the future all building will be retro fitted to ensure carbon neutralisation. This area alone requires further discussion with DBIS/LSC/SFA/LGA/YPLA/DCSF etc. With the changing environment for learners and the manner in which they learn the challenge of whether the current space calculations are correct and as such should this area be further considered/changed. The use of space and the amount of space allocated determines the cost of the building. It is noted that the space calculations for FE learners massively differs from that applied in the HE sector, this is evidenced through the manner in which HE learners learn, academically vs. vocationally. However, the space required in a practical workshop should be managed on health and safety grounds the area of classroom work can be managed differently. Clearly space and space norms are an area for further thought. Other areas to assist are the approach to the governance of a programme/project. Governance measures provide you the client with the mechanism to understand the challenges before, during and after. The types and frequency of reports, risk and change management, how this is applied and the change in approach as the design is developed through to delivery and into operation. Governance is your area of influence and control and therefore your ability to reduce costs through effective communication and management. It is acknowledged that the level of understanding of programmes and projects for developments varies from reader to reader and as such the information held within the report is to provide guidance assuming a reader with limited or no knowledge.

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There is a benefit to you the reader and the sector to be a more intelligent client in the area of development and whilst not being a professional practitioner in development programmes or projects this intelligence will enable you to maximise on cost reduction and be in a position to challenge your professional team throughout the process. The ability of the client to understand the process and to be able to challenge the professional team around you, ensures that you take over a new or refurbished building that meets expectations, is completed on time and within agreed budgetary parameters and with a quality that all stakeholders (Students/Staff/Corporation Members/Local Community as examples) can be proud of. This report provides general assistance in reviewing the cost and procurement of FE schemes but ultimately it is likely that the following will be required: The capital handbook is re-written to provide the appropriate guidance to support the reader to become the more intelligent client for future new builds or refurbishments, and Estates Strategies be reviewed and where required re-written to meet the changing financial climate and re-focused expectations on capital investment.

3 Glossary of Terms
This section is to assist the reader in providing a list of abbreviations and a brief overview of the roles within a programme or project, but in the main, within the setting of a development/refurbishment. Annexe B, Appendix 1; will provide a list of abbreviations, Appendix 2, contains the succinct details of the following roles/team members; Strategic Property Advisor, Programme/Project Director, Programme Manager, Project Manager, Architect, Structural/Civil Engineer, Mechanical and Electrical Engineer, Cost Consultant/Quantity, Surveyor, Planning consultant, Employers Agent, Supplementary members archaeological, ecological, transport consultants etc. Appendix 3 contains key roles within the structure of the Programme/Project.

3.1 What is a Programme or a Project


Throughout the report there will be references made to Programmes and Projects. It is prudent therefore to provide a definition of a Programme and Project at this point in the document; A Programme is defined in Managing Successful Programmes as A temporary and flexible organisation created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisations strategic objectives. KME Consultancy Ltd | 9

A project is defined as a Temporary organisation, usually existing for a much shorter period which will deliver one or more outputs in accordance with a specific business case

4 Employment
This section examines the typical design team appointments that will be required; their respective roles and responsibilities; interfaces with other members of the professional team, client groups and stakeholders and the timing of the appointments. It will also discuss the supplementary design and professional services that are sometimes required depending on the nature and or complexity of the given project.

4.1 Core Team


The most universally adopted breakdown of outputs and deliverables in the design, development and delivery of projects in the built environment is the Royal Institute of British Architects (RIBA) plan of work. This, together with its various stages and outputs is discussed in more detail under section 6.3. The following core team appointments are now discussed in more detail. These are normally considered as the essential ingredients in developing a design: Programme/Project Director/Manager Architect Structural & Civil Engineer Mechanical & Electrical Engineer Cost Consultant CDM-Coordinator Property Advisor

The creation of an Estates Strategy which will consider all options from do nothing, refurbishment and a new development will possibly require external input. It is advisable to appointment a specialist(s) to support this delivery and a Programme/Project Director can provide key support at the earliest of stages on the development of the Estates Strategy and the use of a property advisor will assist in the completeness of the Strategy in detail. The Programme/Project Director will provide you the client with the professional advice and guidance not only through the period of Estates Strategy creation but also on the selection of your remaining elements of the core team. The experience of this individual will ensure that the team members are procured and appointed correctly and all schedule of services agreed at an early stage to prevent cost increases due to items not agreed at the outset. This can be as example; door scheduling for the architect, Rebar scheduling for the structural engineer and thermal modelling by the M&E engineer. This KME Consultancy Ltd | 10

individual should be come the person who creates a relationship in such a manner that openness, trust and respect allows good and bad news to be communicated and as such allows effective expectation management from the outset. Once the requirement for design input has been established and the purpose or intent of producing that design is agreed it is usual to engage the services of an Architect who acts as the Lead Designer. The purpose of the distinction Lead Designer is to reinforce the hierarchy of design team members and thus ensuring that as part of the scope of service, the Architect takes responsibility for co-ordinating the various inputs of other design team members at the times/ stages of the project that they are required. Amongst the Architects key duties is to liaise with the college regarding the development of its brief - work that may have already commenced using either in house personnel or external consultants. The architect will develop the requirements or brief into a design response that can be used to obtain planning permission and to invite constructors to submit a price against (this will be covered in more detail later) Depending on the stage at which design input is required it may be necessary to engage the services of a Structural & Civil Engineer. This designer will work closely with the architect interpreting the emerging outline design information and testing it in terms of structural options to support the vision. The Structural & Civil Engineer will also be able to provide (either in house or via external support) advice on suitability of ground conditions on the site of the proposed development either as a desk top based analysis or intrusive survey works depending on the stage of the design. The appointment of a Mechanical & Electrical Engineer is encouraged early in the process to supplement the architectural appointment. In addition to providing valuable design input in terms of the building environmental and infrastructure systems/ installations this consultant can add value at an early stage by offering advice on passive strategies such as building orientation in relation to sunlight analysis and potential heat gain. The availability of services and infrastructure to support the development will also be examined by the Mechanical & Electrical Engineer a process which can identify potential programme and cost risks at an early stage. The Mechanical & Electrical installations typically make up around 30% of construction costs therefore early input in terms of understanding the client requirements is essential in terms of aligning expectations with project costs and budget. Engaging a Cost Consultant is essential as part of the core team, as designers are often subject to criticism for not considering the impact of design on budget. It is the role of the cost consultant to ensure that the team is aware of the effect of design changes on the budget, and that this information is advised to the client prior to incorporation within the design. In addition a Cost Consultant/Quantity Surveyor can complement the design team in providing advice on alternative materials, installations, design options and procurement methodologies, and ensure that any VE opportunities are taken at an early stage. KME Consultancy Ltd | 11

Engaging a CDM-Coordinator at the earliest stages of the project provides the College/client with meeting their obligations under Health and Safety requirements/legislation. You will ensure that the development of the design and the assessment of team competencies are fully compliant.

4.2 Supplementary Appointments


Clearly each project is unique and will be faced with its own individual challenges and obstacles. To this end the list of services below is by no means prescriptive or exhaustive, but at some point in the evolution of the development of a project it may be necessary to engage some or all of the following: Landscape architect Town Planning Agency (on disposal or acquisition of real estate) CDM Coordinator (Health & Safety) Legal Advice Building Control Site Surveys and Studies (including topographical, arboriculture, geo-technical, traffic and transport, environmental surveys) BREEAM consultant Specialist Design (Kitchen/ Catering, ICT, Digital Media) Acoustic Consultant (What is the designs sound level rating Facilities Management (If the expertise is not in house then the FM planning is not fully considered and the operational cost implication is not fully appraised. Also are you going to outsource the ongoing maintenance of your estates infrastructure)

4.3 Main Contractor


4.3.1 Forms of Procurement This section details the type of procurement routes available for securing consultants and contractors. All readers should confirm current legislation with their procurement officer or person(s) responsible for appropriate procurement management. Before starting out please be aware of legislation/law on procurement; the levels of expenditure, how to notify the market place of intentions, selection process and minimum time period to secure a contract. The process of selecting a Main Contractor is perhaps one of the most important tasks on a project and one that can determine the success or failure of a project. The Main Contractor is the organisation tasked with the overall responsibility of building the project as designed by the team. There are many alternative forms of procuring a Main KME Consultancy Ltd | 12

Contractor that will determine the timing of the appointment (these will be discussed in more detail later) and the amount of work required from the design team prior to the Main Contractor providing a price. The Main Contractor will normally engage or manage a number of sub-contractors or sub-contract packages who will physically undertake the construction activities on site. The Main Contractor will be responsible for the overall programming of construction outputs and the coordination of activities on site an ensuring that the development is constructed in accordance with the Employers Requirements (ERs). The procurement route itself is an important piece of work that should be agreed early in the project and a detailed strategy paper identifying the options available that complement the aspirations of the client should be commissioned through the Cost Consultant or Project Director/Manager. Depending on the procurement route selected there are a number of standard forms of contract available to suit each form (for the purpose of this paper it is not intended to review all of them in detail). Bespoke forms of contract are also used but can be timely to agree as clauses often differ from standard forms. Standard forms include: Joint Contracts Tribunal Suite (JCT), NEC3 2009 Suite (New Engineering Contract), GC Works Suite ('General Conditions of Government Contracts for Building and Civil Engineering Works'), Association of Consultant Architects (ACA), o ACA Project Partnering Contract (PPC), o ACA Term Partnering Contract (TPC), Institute of Civil Engineers (ICE), Association of Consultants and Engineers (ACE), FIDIC (Fdration Internationale Des Ingnieurs-Conseils) French for the International Federation of Consulting Engineers, And others.

4.3.2 Procurement Options available for construction Your next phase of development is now being considered. One of the key aspects to the delivery of the next building or refurbishment is the procurement route for the main/principle contractor. In addition to the procurement route other intangible benefits should be considered at an early stage, but, recognise that this comes with a cost of both time and finances. These could include the environmental assessment such as BRE Environmental Assessment Method (BREEAM), the design of the building through competition rigour with the Royal Institute of British Architects (RIBA) involvement. KME Consultancy Ltd | 13

The OJEU process typically involves issuing a Prior Information Notice (PIN) of the impending development and seeking consultants and main contractors. Pre Qualifications Questionnaires (PQQ) are released which enables an initial sift of applicants and thus allow a smaller group of tenderers to progress forward to the Information To Tender (ITT) stage. The ITT process varies in length depending on which route you undertake and the commitment of the evaluation team and tenderers. Confirm the desired route and timelines with the Colleges procurement manager/team. The following Diagram considers pictorially the procurement options available and the level of cost risk exposure when considering the capital and operational aspects of a development.

Once you are aware of the Risk exposure, consider the design and time constraints for delivery against the procurement route considered and the cost that you are willing to pay for the delivery. Below gives broad indication of the procurement route available and the cost for the specific route. But also note the subsequent diagrams showing the flexibility and complexity with each route considered. The procurement route is a balance against time, cost and quality.

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Design & Cost

Time & Cost

Along with the above diagrams the following table is a breakdown in broad terms of a few options available to the College in its procurement route. The detail provides an overview and the associated benefits and risks with each. Notwithstanding that there is a need to follow the EU procurement directives, the selected options available are; Design and Build Single stage; Design and Build Two stage; and Traditional two stage.

There are other options but due to the risks involved I have omitted them from this document, however each College will have available a Cost Consultant and /or a legal team who could comment further on other procurement options. The following table presents an overview of the four procurement options; KME Consultancy Ltd | 15

Options

Design and Build Single stage

Design and Build two stage

Traditional two stage

Overview

All design and construction responsibility with contractor, this could include planning submission. Works subject to single tender action against employers requirements. Further option is to engage the design team to provide the detailed work to a further stage in the RIBA process prior to inviting tenders. The concentration of risk appeals to employers but this needs to be measured against the quality of information required for employers briefing and the need to place quality measures in place to ensure contractor complies with their quality obligations. These are the reasons why this is normally associated with simpler types of builds.

As with single stage but with greater overlap of design and construction activities. Contractor selected at an early stage based on qualitative assessment and tender prelims and profit against an outline design and target cost plan. Contractor is appointed to work with the employers team to develop the detailed design in line with the target cost plan. Theory states that the contractor will add value to the detailed design process by advising on methods to improve construction efficiency or achieving buying gains. The contractor derives a fee for this service which is part of the first stage tender return. Detailed design is tendered to sub contractors with joint adjudication of the tender by the contractor and employers team. The contractor is not allowed to negotiate with sub contractors to improve his previously declared profit margin. A lump sum contract is entered into once the subcontractor packages have been received. Programme pressure can dictate on what cost certainty percentage is acceptable to the employer.

Contractor selected at early stage, qualitative assessment based on tendering prelims and profit against outline design and target cost plan. Contractor is appointed to work with the employers team to develop the detailed design in line with the target cost plan. Theory states that the contractor will add value to the detailed design process by advising on methods to improve construction efficiency or achieving buying gains. The contractor derives a fee for this service which is part of the first stage tender return. Detailed design is tendered to sub contractors with joint adjudication of the tender by the contractor and employers team. The contractor is not allowed to negotiate with sub contractors to improve his previously declared profit margin. A lump sum contract is entered into once the subcontractor packages have been received. Programme pressure can dictate on what cost certainty percentage is acceptable to the employer.

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Options Benefit

Design and Build Single stage


Permits overlapping design and construction. Risk accepted by the employer in terms of cost certainty is minimised by a lump sum price and by key design and construction risks being placed firmly on the contractor. Responsibility for errors or omissions in detailed design rests with contractor. Detailed design and drawing production can overlap with contractors mobilisation.

Design and Build two stage


As with single stage with greater flexibility for fast tracking work. The contractor is part of the employers team. Initial subcontract packages can be tendered whilst the last of the detailed design is being completed. Tender results will flow through allowing early reconciliation with the budget. Corrective action can be taken if tenders exceed the target cost plan. Lead in times are generally reduced. There is generally a more open approach to post contract costs by the contractor.

Traditional two stage


The contractor is part of the employers team. The employer retains control of all design and specification decisions. Issues that would otherwise become apparent post contract should be resolved during the detailed design. This should reduce post contract variations, delays and claims. Initial subcontract packages can be tendered whilst the last of the detailed design is being completed. Tender results will flow through allowing early reconciliation with the budget. Corrective action can be taken if tenders exceed the target cost plan. Lead in times are generally reduced. There is generally a more open approach to post contract costs by the contractor.

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Options Risk

Design and Build Single stage


Once contract let detailed working of the design in the hands of the contractor. Detailed design decisions may be made for economy reasons rather than quality. This can be mitigated by good quality tender documentation and the establishment and enforcement of a rigorous quality plan. Requires close site supervision by employer. Post contract variations due to changes in the employers requirements are generally more difficult to incorporate and can prove costly. The level of professional fees tends to be higher particularly to provide the level of site supervision required to provide quality control.

Design and Build two stage


As with single stage but cost certainty is compromised until resolution of stage two tender actions. Ambiguity can exist in what contractors prelim cost does and does not cover.

Traditional two stage


The employer is responsible for the adequacy of the work of the design team and therefore carries the risk of errors or omissions in the design - which potentially will increase dependent upon the programme constraints imposed. Ambiguity can exist in what the contracts prelim cost does and does not include.

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5 Whole Life
Whole life is referred to in different ways by different disciplines. For practical reference whole life is from cradle to grave. This is from the conception of the programme/project, through design development, delivery of design, operational use and then decommissioning/deconstruction/demolition; however this could be seen as one of the key starting points of the next programme/project. It is very unlikely that many individuals will see the whole life of a building so each discipline considers whole life as the project (termed Programme/project life cycle) and not necessarily the operational aspects of the received product. The life of a development is considered in different terms depending on the discipline that you talk to. Royal Institute of British Architects (RIBA) use a stage A L approach where as the Structural and Civil Engineers will use the terminology of stages 1 5. The following will provide you with an overview of the terminology and the expectations within this stage

5.1 RIBA Stages


RIBA Plan of Work Stages The RIBA Plan of Work describes the activities from appraising the clients requirements through to post construction. The stages are also used in the appointment of architects and help to identify consultant services and indicate the resource and fee total by Work Stage. Annex C Provides more detail on the RIBA stages however, the following table is a brief overview of the RIBA stages:

A: Preparation

Appraisal Identification of client's requirements and possible constraints on development. Preparation of studies to enable the client to decide whether to proceed and to select probable procurement method.

B:

Strategic Briefing Preparation of Strategic Brief by, or on behalf of, the client confirming key requirements and constraints. Identification of procedures, organisational structure and range of consultants and others to be engaged for the project. [Identifies the strategic brief (as CIB Guide) which becomes the clear responsibility of the client]. Outline proposals. Commence development of strategic brief into full project brief. Preparation of outline proposals and estimate of cost. Review of procurement route.

C: Design

D:

Detailed proposals. Complete development of the project brief. Preparation of detailed proposals. Application for full development control approval.

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E:

Final proposals. Preparation of final proposals for the Project sufficient for coordination of all components and elements of the Project.

F:

Production information F1: Preparation of production information in sufficient detail to enable a tender or tenders to be obtained. Application for statutory approvals. F2: Preparation of further production information required under the building contract. [Now in two parts, F1 - the production information sufficient to obtain tenders and F2 - the balance required under the building contract to complete the information for construction].

Pre-Construction

G:

Tender documentation. Preparation and collation of tender documentation in sufficient detail to enable a tender or tenders to be obtained for the construction of the Project. [Solely concerned with the documentation required for tenders. Particularly useful with D+B or management contracts].

H:

Tender action. Identification and evaluation of potential contractors and/or specialists for the construction of the project. Obtaining and appraising tenders and submission of recommendations to the client.

J: Construction

Mobilisation. Letting the building contract, appointing the contractor. Issuing of production information to the contractor. Arranging site handover to the contractor.

K:

Construction to Practical Completion. Administration of the building contract up to and including practical completion. Provision to the contractor of further information as and when reasonably required. After Practical completion. Administration of the building contract after practical completion. Making final inspections and settling the final account. [Clearly separated from the construction phase]. Assist building users during initial stages of occupancy. Review of building performance in use.

L: Use

In addition to the RIBA stages the following provides an overview of the 5 Stage life of a project as considered by the Structural and Civil Engineering discipline:

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Stage 1

Concept and Feasibility

Stage 2 Stage 3 Stage 4 Stage 5

Design and Planning Tender Selection Construction Stage Commissioning and Handover

6 Cost Impact and Assessment


What is the correct approach to cost? Should a College use the space calculations and apply a /m2 rate and then inform the professional team that is all you have now build it. Or should there be an expectation of bigger and better and maximise (economies of scale) the buying power available to you as an individual College or as a collaboration with other Colleges within the area or another project. Cost is an area that can spiral out of control from the first concepts considered through development and into operational use. As the client or budget holder the areas for consideration in cost control stems from professional fees, the development itself and the operational costs post development.

6.1 Professional Fees


Professional Fees are as the say your professional team working for you and providing the practitioner aspects of design and delivery. The approach to employing this professional team and the management of the team will affect the overall cost of the project. A professional team are there either on a percentage of the construction cost or on a negotiated fixed fee arrangement. Failing to employ early enough will cost you additionally on the overall project construction cost but employing to early could see them earning fees but not delivering an output which can affect the professional fee budget. Achieving the correct balance requires experience and appreciation of the external influences being applied on the project and as such this requires a good relationship with your appointed lead consultant whether a Strategic Planning Advisor or Programme/Project Director. The 3 As, ensure the schedule of service is Accurate, Adequate and Agreed, this will help prevent spiralling costs but it should be noted that a change in design by one of the consultants which may initially seem small could have the multiplier effect on the other consultants, and this comes at a cost, not just in their fees but the construction cost itself. The expenditure of professional fees over the life of the project are shown in two tables, the table below provides an overview in percentage terms of the fee expenditure at a specific KME Consultancy Ltd | 21

RIBA stage and at Annex D which provides a financial reference against an 85m construction figure. Note; the assumptions made are; 10% professional fee budget against a construction value of 85m (LSC cost model considers 12%, industry norms show up to 15%, IT programmes/projects could reach as high as 20%). Some professional fees will be a percentage of the construction cost; Architect, Structural/Civil Engineer, M&E (this could be against the construction cost as a whole or against the M&E element of work), Cost Consultant, others will be a negotiated fixed fee these include; Fire consultant, Security consultant, Acuostion, BREEAM, Building Control, CDM Co-ordinator, Planning consultant, Specialist consultants such as AV/Theatre/digital media/science laboratories etc. From the tables it is worth noting that you may have spent in excess of 60% of your professional fee budget before you have started on site. Note the risk associated with this upfront work but also be secure in the type of contract you have entered into so to maximise the resources available to you. Novation of the design team must also be considered at an early stage and whether you feel the merits of novation should be entered into. Be aware that the agreed fee outstanding at novation will need to be transferred to the main contractor and this will be identified in their contract sum. If you novate the design team consider who will provide the technical advice to ensure the College is not agreeing to contractor changes (exclusions and inclusions to the design) without fully appreciating the consequences. It maybe prudent to invest in a technical advisor to ensure your interests are technically fully covered.

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6.1.1 Professional Fees Expenditure Table in Percentage Terms and By RIBA Stage

Cumulative Percentage Total of Fee Pre-Contract Stage A&B Inception & Feasibility Project Manager Architect Landscape Architect Structural & Civil Engineer Mechanical & Electrical Services Quantity Surveyor Transport Consultant Building Control BREEAM Consultant Acoustician Fire Cosultant Theatre/AV Security Employer's Agent CDM Co-Ordinator Average Percentage of Fee Expenditure Per Stage Notes The above is indicative only 4.00% 20% 13.33% 10% 10% 10% 10% 10% 10% Stage C Outline Proposals 30% 25% 25% 25% 25% 25% 25%

RIBA Design Stage Post Contract Stage D Detailed Proposals 50% 40% 40% 40% 40% 40% 50% 35% 25% 50% 50% 50% 50% 40% 40.00% Stage E Final Proposals 70% 60% 60% 60% 60% 60% 70% 70% 50% 60% 60% 60% 60% 10% 60% 58.00% Stage F Production Information 90% 80% 80% 80% 80% 80% 90% 85% 75% 75% 75% 75% 75% 30% 80% 76.67% Stage G-L Tender & Construction 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100.00%

The above assumes Two-Stage Design and Build Procurement (with Employer's Requirements being issued at Completion of Stage E) No allowance has been made for Post Contract Variations and Associated Fees. Disbursements and Expense have not been Included

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6.2 Development Costs


In developments approaching the design it is critical to ensure that costs are controlled and meet the quality and expectations of all stakeholders. As a major stakeholder/client your approach to design development will ensure that your building(s) meet the expectations of all stakeholders (students, corporation, staff and the local community to name a few) in managing costs. To ensure that this is achievable, concepts should be reviewed at early stages not just to consider how aesthetically pleasing the building is but also what buildability, functionality and operational issues are being stored up and as such what is the additional costs associated with the pleasing to the eye building. Functionality and Operational issues of the building is an area for the client to consider at the earliest stage and a full brief provided within the client brief as presented to the design team, the detailed design of this can be worked up as the design progresses over the early RIBA Stages. This section has been designed to assist the reader in their approach to understanding costs and the impact of Value Engineering (VE) at any stage within the design. Although to the informed reader considering a design which is at Stage D/E which is the first sub-section, seem wrong, The detail in this sub-section will assist in the ease of comparison of any design prior to this RIBA stage. This section also provides some broad advice when considering refurbishments and the wider property issues you may face. In addition to the contents of this section Annex E has been designed to provide the reader and elemental breakdown of a development of a 20,000m2 building. This breakdown provides an overview of costs if construction was for a College, school, HE institute and an Office building. 6.2.1 Projects at RIBA Stage D/E The purpose of this Section is to provide a Framework/Set of Guidance Notes to give Colleges, a menu through a schedule of rates and key considerations for use in interrogating and attempting to reduce the overall cost of their proposed development(s). The Document is prepared on the basis of the Information contained within the LSC Cost Model, as a sample scheme i.e. is based on a Generic New Build 4 Storey Development of Circa 20,000m2 Gross Internal Area (GIA) Procured on a Two-Stage Design and Build Methodology. It is acknowledged that the LSC cost model may not be the rule of assessment moving forward; however a baseline is required to provide tangible examples. The elements for consideration are as detailed within the LSC Cost Model. Sub-Structures Demolition

An area which can be extremely costly in a demolition is asbestos. Early surveys for asbestos will enable the demolition package of the contract sum be more accurately KME Consultancy Ltd | 24

determined if appropriate surveys have been undertaken. These surveys can be as simple as a visual one through to a more intrusive. If these surveys have not been carried out then the contractor will add a provisional sum to the contract sum. In this area be aware of the health and safety requirements, the impact of removing debris from site, how this will be achieved and the impact on your environmental approach to the development. Consideration of; The ICE (Institute of Civil Engineering) Demolition Protocol 2008, Waste Management Plans, Demolition/Deconstruction resource Recovery specification and CDM requirements. These are just some of the knowledge pools and requirements available. Sub-Structures

The approach to this area should have been finalised at this stage. It should however be noted, that it may be worth challenging the Design Team, as to whether there may be a more economic alternative to the proposed scheme. As a general rule piled foundations offer the most expensive option, however, economies may be achieved by using the buildings foundations to install a vertical Ground Source Heat Pump system; In the case of a raft/ground bearing slab foundation alternative, any costs associated with installation of GSHP Installation will need to be borne from the cost of the building services. Superstructure This area of a development can have between 25%-30% of the gross development cost. And from the elemental breakdown defined by the LSC covers; Frame Not Considered (Subject to review on a Project by Project basis).

The approach to this area should have been finalised at this stage, whether the frame is concrete, part concrete and steel or all steel as example. Upper Floor Not Considered (Subject to review on a Project by Project basis) Roof

This report seeks to review the Roof Coverings Only, as the Roof Structure should be considered as part of the Overall Structure of the Building and is therefore not subject to a generic cost review. The LSC Cost Model expectation is for a Single Ply Roof Membrane, Screed, Insulation and Associated Drainage, with a Glazed Atrium occupying 25% of the Roof Area. It is worth considering a reduction in the overall atrium size to a figure of between 15 and 20% of the Roof Area, or alternatively the omission of the atrium in it entirety; The cost reduction which could generally be expected through a reduction in the size of the atrium are shown below and could potentially result in a cost saving to the project of between 41,250.00 and 82,500.00. The above calculation assumes the following: Overall Roof Area; 5,000m2 KME Consultancy Ltd | 25

Glazed Atrium @ 25% of Roof Area: 1,250m2 @ Circa 400.00/m2 = 500,000.00 Overall Roof Area; 5,000m2

Glazed Atrium @ 20% of Roof Area: 1,000m2 @ Circa 400.00/m2 = 400,000.00 Plus Additional Roof Structure 250m2 @ Circa 140.00/m2 = 35,000.00

Plus Additional Single-Ply Membrane 250m2 @ Circa 95.00/m2 = 23,750.00 458,750.00 Overall Roof Area; Glazed Atrium @ 15% of Roof Area: Plus Additional Roof Structure 5,000m2 750m2 @ Circa 400.00/m2 = 300,000.00 500m2 @ Circa 140.00/m2 = 70,000.00

Plus Additional Single-Ply Membrane 500m2 @ Circa 95.00/m2 = 47,500.00 417,500.00 Further to the above it should also be considered that increases in the overall area of Atria as a percentage of the roof will have the inverse effect on the budget. In addition it is worth noting at this stage that the above does not consider the effect on the Mechanical & Electrical loads on the building that any adjustment to the area of the roof atria may have. We would also highlight that whilst the Cost Model Expectation is that the Roof might be covered with a Single Ply membrane, our experience has shown that a number of different materials have been specified within the Sector to be used as Roof coverings, a number of examples are scheduled below, with an indication of Cost/m2 Rates. These should be compared with the Standard Single Ply Membrane cost of 95.00/m2; Kalzip Metal Standing Seam Roof System Hydrotech Roof Covering with Zinco Bio-Diverse Green Roof Hydrotech Roof Covering with Zinco Bio-Diverse Brown Roof Sedum Green Roof Hydrotech Roof Covering with Timber Roof Decking Hydrotech Roof Covering with Paved Roof Areas 150.00/m2 200.00/m2 170.00/m2 130.00/m2 230.00/m2 120.00/m2

It should be noted that any change to the Specification of Roof Coverings may be subject to approval by the local Planning Authority. Stairs

The allowances within the LSC Cost Model are based on the following:

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Feature Steel Stair within Atrium with Glass Balustrades and Stainless Steel handrails. Core staircases in precast reinforced concrete with half landings, polyester coated steel balustrades and painted walls, vinyl covered floors and painted ceiling finishes.

When reviewing the budgetary allowances within the project cost plan, consideration must be given to the specification of the Balustrades, as well as the extent of protection (balustrading) around floor voids, therefore the positioning of Floor Voids within the centre of the Floor Space is more expensive than positioning a floor void at the perimeter of the floor; The shape of any protected floor penetration should also be considered, as generally irregular shapes are considered more expensive to protect than regular ones; consideration should also be given to the configuration of the Staircase i.e. Balustrading to both sides, Balustrading to one side only, or the use of handrails only. In terms of the specification of the balustrade there are a number of alternative solutions, and an indicative range of prices is shown below: Toughened/Structural Glass Balustrades Stainless Steel Handrail Steel Balustrade with Glass Infill Panel Stainless Steel Handrail Steel Balustrade with Steel Mesh Infill Panel Stainless Steel Handrail Post and Wire Balustrade Stainless Steel Handrail Painted Metal Powder Coated Handrails External Walls 1,750/m 1,150/m 1,000/m 700/m 350/m

The LSC Cost Model assumes a combination of Finishes, made up of Composite Rainscreen Cladding Panels to 50% of the elevational area, with an element of Glazed Curtain Walling, with Brise Soleil for Solar Shading and Brickwork or rendered Blockwork to 20% of the elevational area. (The remaining elevational area is made up of Windows, which is considered in further detail below.) In terms of reducing cost consideration should be given to adjusting the percentage of elevational area applied to each element. An example of this is shown below: Based on a Square Building of 71m x 71m of 4 Storeys with a Floor to Floor Height of 4.50m, the Total Elevation Area of External Walls = 5,112m2. Say 5,100m2. LSC Cost Model Allowance: Composite Rainscreen Cladding @ 50% of Elevational Area = 2,550m2 @ Circa 350.00/m2 = 892,500.00 Brickwork/Rendered Blockwork @ 20% of Elevational Area = 1,020m2 @ Circa 150.00/m2 = 153,000.00 KME Consultancy Ltd | 27

Example Budget: 1,045,500.00 (LSC Cost Model Allowance) Option 1: Rainscreen Cladding @ 45% of Elevational Area, and Brickwork/Rendered Blockwork @ 25% of Elevational Area. Composite Rainscreen Cladding @ 45% of Elevational Area = 2,995m2 @ Circa 350.00/m2 = 803,250.00 Brickwork/Rendered Blockwork @ 25% of Elevational Area = 1,275m2 @ Circa 150.00/m2 = 191,500.00 Example Budget: 994,750.00 (Option 1) Option 2: Rainscreen Cladding @ 40% of Elevational Area, and Brickwork/Rendered Blockwork @ 30% of Elevational Area. Composite Rainscreen Cladding @ 40% of Elevational Area = 2,040m2 @ Circa 350.00/m2 = 714,000.00 Brickwork/Rendered Blockwork @ 30% of Elevational Area = 1,530m2 @ Circa 150.00/m2 = 229,500.00 Example Budget: 943,500.00 (Option 2) A further alternative would be the omission of the rainscreen cladding in its entirety and its replacement with fair faced Blockwork. Further consideration should be given to the overall size and shape of the Building, and the determination of the Area of External Walls to Floor (the Wall: Floor Ratio) in general terms the most efficient building shape for reducing the overall wall to floor ratio is a circle, however due to the difficulties in constructing round buildings, in construction terms the most efficient shapes are considered to be either Squares or Rectangles. A Floor : Wall Ratio of a Square building of 4 Storeys and a GIA of 20,000m2 might be in the region of 4: 1. However examples of the floor : wall ratios of more complex building shapes can be seen below; Project A Project B Floor Area 27,000m2: External Wall Area 12,500 m2; Circa 2.160: 1 Floor Area 17,000m2: External Wall Area 8,000 m2; Circa 2.125: 1

Both of the schemes above have either been submitted and approved by the LSC. In the examples above the Floor: Wall Ratios are nearly twice, those which would be anticipated for a square/rectangular building, the effect of the above Floor: Wall Ratios on the outturn costs of a project can be seen in the worked examples below:

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Based on a Generic Floor Area: 20,000m2, and LSC Cost Model allowances for External Wall in Rainscreen Cladding and Rendered Blockwork. Floor: Wall Ratio 4: 1 Wall Area = Circa 5,000m2 Allow Composite Rainscreen Cladding @ 50% of Elevational Area = 2,500 m2 @ Circa 350.00/m2 = 875,000.00 Brickwork/Rendered Blockwork @ 20% of Elevational Area = 1,000 m2 @ Circa 150.00/m2 = 150,000.00 Anticipated External Wall Costs = 1,025,000. Floor: Wall Ratio 2.160: 1 Wall Area = Circa 9,250m2 Allow Composite Rainscreen Cladding @ 50% of Elevational Area = 4,625 m2 @ Circa 350.00/m2 = 1,618,750.00 Brickwork/Rendered Blockwork @ 20% of Elevational Area = 1,850 m2 @ Circa 150.00/m2 = 277,500.00 Anticipated External Wall Costs = 1,896,250. Floor: Wall Ratio 2.125: 1 Wall Area = Circa 9,400m2 Allow Composite Rainscreen Cladding @ 50% of Elevational Area = 4,700 m2 @ Circa 350.00/m2 = 1,645,000.00 Brickwork/Rendered Blockwork @ 20% of Elevational Area = 1,880 m2 @ Circa 150.00/m2 = 282,000.00 Anticipated External Wall Costs = 1,927,000.00. Windows and External Doors

The expectation of the Cost Model is that 30% of the Elevational area of the building will be Windows and External Doors, and it is also the LSCs expectation that these will be Double Glazed. As detailed in the example above in terms of the External Walls any adjustment in the area of Windows and Doors could result in potential savings, assuming that these elements are replaced with either brickwork or rendered Blockwork, however, the Windows and External Doors cannot be considered as a single item, as any changes to this element of the Building Structure could/will have an effect on the services of the building and particularly the Mechanical Strategy. It is further worth noting that in terms of the specification of Windows that UPVC is generally considered to be circa 20% cheaper that Aluminium, and that fixed windows i.e. NonKME Consultancy Ltd | 29

Openable windows are cheaper than Openable windows, again this will effect the buildings Mechanical Strategy. Internal Walls & Partitions

The LSC Cost Model, anticipates a combination of Glazed Screens, Blockwork and Solid Partitions and twin leaf acoustic wall construction and glazed partitions. When giving consideration to the Internal Walls and Partitions the main items to consider are as follows, the number and size of Demountable/Sliding Partitions; the area of the Glazed Screens and Partitions and the specification of the Solid Internal Partitions i.e. Blockwork/Plasterboard Systems. It should be noted that in broad terms indicative m2 rates for Internal Partitions are as follows: Glazed Screens Blockwork Partitions Plasterboard Partitions Demountable/Sliding/Folding Partitions 500.00/m2 42.00/m2 60.00/m2 365.00/m2

N.B. All rates are indicative and should be reviewed on a project by project basis, as they will be subject to adjustment due to the following factors; specification of materials; location factors; inflation/deflation within the Tender Price Indices; market conditions. If it was assumed that a Generic College building would require in the region of 8,000m2 of Internal Partitions, with an assumed split of 10% Demountable Partitions, 25% Glazed Partitions, 25% Blockwork Partitions and 40% Plasterboard Partitions, the total costs of each element of the Internal Partitions would be as detailed below: (This example is broadly in line with the expectations of the LSC Cost Model, in terms of the Total outturn cost) Demountable Partitions Glazed Screens Blockwork Partitions Plasterboard Partitions 800m2 @ 365/m2 = 292,000.00 2,000m2 @ 500/m2 = 1,000,000.00 2,000m2 @ 42/m2 = 84,000.00

3,200m2 @ 60/m2 = 192,000.00

However, by reducing the areas of Demountable partitions and Glazed Partitions to 5% and 15% respectively and increasing the Plasterboard partitions to 55%, the costs would be as shown below: Demountable Partitions Glazed Screens Blockwork Partitions Plasterboard Partitions 400m2 @ 365/m2 = 146,000.00 1,200m2 @ 500/m2 = 600,000.00 2,000m2 @ 42/m2 = 84,000.00

4,400m2 @ 60/m2 = 264,000.00 KME Consultancy Ltd | 30

In this example the Total Saving to the Building Cost of the project would be in the region of 475,000.00, with further reductions to the Nett construction cost being achievable if the Demountable/Glazed Partitions were reduced further, or even omitted in their entirety. The information above does however, not make any allowance for the Acoustic performance required by a particular College. Internal Doors

The Cost Model assumes Solid Core fire rated doors in hardwood frame, with Stainless Steel Ironmongery, with Lock Suiting and DDA Compliance. There are a number of ways in which the cost of the Doors within a building might be reduced, and these would include but not be limited to the use of hollow core doors with softwood frame, the use of Paint Grade doors, i.e. Doors which are not finished, but prepared to receive paint, and a reduction in the specification of the ironmongery. The costs associated with Internal Doors are highly sensitive to specification changes, and as such should be reviewed on a project by project basis, as whilst a hollow core door in a softwood frame might be an alternative in terms of the aesthetics of the building, it will not be as hard wearing as a solid core door in a hardwood frame, and is therefore more susceptible to damage etc. Any lock suiting and Ironmongery decision should be reviewed as part of an overall project strategy in terms of access control, and student/staff access to Classrooms when not being used for Structured Learning/Teaching. Door sizes can also add to the overall cost. Oversized doors (greater than 2m) will create a greater cost. Not only will the manufacturing of the door be above that of a standard door but the hanging of the door will be more expensive. Taller/larger doors require more manpower to hang them thus increasing the labour costs associated with this work. Finishes This area of a development can have between 4.25%-8% of the gross development cost. And from the elemental breakdown defined by the LSC covers; Wall, Floor & Ceiling Finishes

The scope and specification of finishes within a building represents potentially one of the largest areas for cost cutting/value engineering within a project, and as with the internal doors (above) and Sanitary ware (within the Services element) should be considered on a project by project basis, as the range and variance in costs are too numerous to list within this document. In light of the above however, some potential areas which might be considered by each college are as follows: The omission of Plaster Skim Coats on internal walls, the alternative being the use of fairface internal blocks with paint applied directly to the block, or simple taping and jointing of plasterboard walls, with paint then applied directly to the board. The omission of Floor Screeds throughout the building, this would however necessitate a slight increase in the cost of the upper floors, as these would require a power floated finish, it KME Consultancy Ltd | 31

should also be noted that were screeds to be omitted throughout the building, this would precluded the use of under floor heating. The LSC Cost Model allows for a fully raised access floor which is a large cost item, this could potentially be excluded although services distribution would then require further consideration. Allowance is also made for Hardwood Skirtings, however, these are significantly more expensive than either MDF or Softwood Skirtings, and although softwood is not as hardwearing as hardwood skirtings are generally not as exposed to damage as other building elements such as doors etc. Furniture & Fittings This is an area that should be considered at the earliest opportunity. The understanding of your assets and there condition will assist in determining the investment required in this area. Failure to understand the FF&E requirement could increase your overall cost for the project significantly. Within a Programme/Project this can equate to between 2% - 7.5% of the overall gross development cost Services This area of a development can have between 20%-30% of the net construction cost or between 13%-19% of the gross development cost. The cost model allowance for Services (Cost Model 1 Issue No 4) for services is 587/m2 (Gross Internal Floor Area); When reviewing the costs allowed within a project for services the Client should consider whether their project out-turn costs are within the budgeted Allowance, if they are outside of this range, then a clear understanding of the variances between the proposed project scheme and the out-turn cost should be sought from the Services Engineer. The Cost model expectations are briefly summarised below: Sanitary Installations WCs and Fittings, inclusive of Disabled Fittings/Urinals/Wash Hand basins and Fittings; Shower Cubicles/Trays etc; Classroom/Laboratory/Cleaners Sinks Drinking Fountains etc. Waste, Soil and Vent Pipe work; Rainwater Installations, Syphonic Drainage; Kitchen, Servery, and Bar Fit Out Mains Water service treatment; Hot and Cold Water Storage and Distribution. Space Heating via Radiators; Under floor Heating to Atrium; Part Natural/Part Mechanical Ventilation/Cooling with 26oC maximum teaching area criteria Incoming Gas Supply and Distribution

Disposal Installations

Mechanical Installations

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Electrical Installations -

Mains and Sub-Mains Distribution; Small Power Generally; Lighting/Emergency/External Lighting Lightning Protection Fire Alarm/Smoke Detection; Security System, Intruder Alarm, CCTV, Public Address; Disabled Refuge Alarms; Disabled WC Alarm System; Building Management Systems (BMS) Controls this is an area where intelligent building management is talked about and the potential savings that can be achieved through the technology. This all comes at a cost and a full ROI is suggested. Areas to consider includes, staff ability to manage and maintain the system, should you therefore outsource the whole maintenance of the building to an organisation that has the capability. What is the impact on the use of the bandwidth of the IT infrastructure?

Information Technology -

The use of IT in the teaching and learning environment and inclusion of telephony and BMS arena will have an impact on any budgetary consideration. An IT strategy is required to ensure that the delivery meets the expectations of the current requirements but also considers easy expansion. Bandwidth (BW) hungry applications/tools/devices will become more and more apparent as technology advances with time. It is not advisable to completely populate a new building with the latest technology unless you are going to maximise its ability. Staff and students will need time to adjust, get trained on all devices/applications installed. Some of this will change the working patterns of staff and likewise the learning ability of students. Digital media/streaming/HD etc along with maintenance systems will all take up BW and additionally the virtual learning environment lessons streamed maybe required. All of this will then need to be stored and on server platforms which are energy hungry or requiring specialised water cooled environments. Building a quality IT infrastructure (network) in the first instance will offer flexibility and expansion for future technological advances without re-engineering the cabling solution at a high cost. Early design considerations in the IT solutions and how it fits into the overall building will save considerable cost and difficulty later.

Lift & Conveyor Installations - 3 No 17 Person DDA Compliant Lifts Builders work in Connection with all of the above items to be considered and reviewed. External Works

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This area of a development can have between 3.5%-10% of the gross development cost. And from the elemental breakdown defined by the LSC covers the first three elements, the addition of landscaping can increase this proportion; Site Works Drainage External Services Landscape Not Considered (Subject to review on a Project by Project basis) Not Considered (Subject to review on a Project by Project basis) Not Considered (Subject to review on a Project by Project basis) Not Considered (Subject to review on a Project by Project basis). This is an emotive subject area which can be clearly affected by the Local Authority. This is an area that is perceived to take the brunt of financial cutbacks on a project. Local Authorities landscape officers are being more demanding on how the final development will look. There is a consideration whilst undergoing VE the types of materials available for use when landscaping. Discuss with your landscape architect in detail best approaches to reducing this cost, types of trees, types of paving, types of block work for car parking etc. Summary for section - Possibly 6.2.2 Projects Pre-RIBA Stage C, Starting Out, or Refurbishment At this stage a review of what options are available to deliver the Colleges vision is available and the College should review: What is our Vision and what type of building is required to deliver this vision if any? Where are we now? Where do we want to be? Is Capital Investment affordable? What is wrong with the existing Campus/Estate? This will result in a number of outputs which will provide clear reasons for change and this may or may not include a new development. These outputs will give clear indication of the options available, from the do nothing to the gold plated version. The following three examples are designed to assist in any decision process the College may undertake. To provide a baseline to show tangible evidence of cost, the LSC cost model (Cost Model 1 Issue Nr 4) has been used as the reference point in this section. Generate Options Do Nothing Identify and Quantify the Costs

In consideration of the Do Nothing the College should give consideration to the following; whether this option is viable i.e. If the output of the initial review identify significant difficulties with the existing estate it may be discounted at an early stage. Also consideration should be given to the following with regards to cost; has the maintenance investment over the previous years been sufficient? is there a significant amount of backlog maintenance to be carried out due to this limited investment? Does the existing estate comply with the necessary building and statutory regulations?

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Do Minimum Refurbish Existing Estate Identify and Quantify the Costs

Area to be refurbished multiplied by Cost/m2 Level of Refurbishment Full Medium Minimal 2,317/m2 1,662/m2 906/m2

N.B. Refurbishment standards are defined by the LSC Cost Model as follows: Full Strip back building to primary frame, retain structural floors, provide a new envelope, resurface roof and fully fit out internally including M&E, IT and Communication Installations. This activity is circa 75% of the cost/m2 for a new build. Retain the existing structural fabric and envelope of the building and introduce extensive new internal finishes and FF&E with part renewal of M&E, IT and Communication Installations. This activity is circa 54% of the cost/m2 for a new build. Retain the building in its present form, with limited elements only of new finishes internally including part FF&E. This activity is circa 30% of the cost/m2 for a new build.

Medium -

Minimal -

In preparation of the Options the College should give consideration to the following; with regards to refurbishment of existing buildings. What planning conditions are there potentially within the local, are the buildings listed, of significant interest to the area, within a conservation area etc. Also what is the extent of the refurbishment as this will have an effect on the sensitivity of planning consent required. These are some of the planning considerations to be aware of when looking at a refurbishment. The condition of the existing estate i.e. Is there a significant amount of backlog maintenance to be carried out? What is the age of the existing estate? Does an asbestos log exist for the existing building? Are there as built drawings available/maintenance manuals etc. available? Does the existing estate comply with current legislation, Building Regulations etc.? To support the operational delivery of the College during a refurbishment how will this be programmed/managed? For an example of logistical issues; Is there a need for temporary accommodation? Will this be portakabins on a car park and the effect this has, is there foundations available to support this and how will the services be supplied to these temporary arrangements, will the car parking limitations effect the travel patterns of staff and students. If this is not the answer will you consider leasing accommodation? If this is office accommodation you will need to seek change in planning use for the building, is there a

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University in the area that has space that it could rent out or another educational establishment. The Commission for Architecture and the Built Environment (CABE) released a document; New from Old: transforming secondary schools through refurbishment, an advice document in support of the BSF programme which has approximately 50% of its programme being refurbishments. It is recommended that this is read in conjunction with this material whilst considering your Colleges approach to Refurbishment. Prior to preparation of robust cost estimating a full and detailed condition survey should be carried out, by qualified surveyor(s), including any necessary additional surveys i.e. Geotechnical, structural, services above ground, services below ground, asbestos, noise and acoustics, fire safety and DDA. Preparation of Alternative Building Options New Build Extend Existing Identify and Quantify the Costs

Area of New Build multiplied by Cost/m2 LSC Cost Model 1 3,171/m2

Plus Area of Any Refurbishment multiplied by Cost/m2 Level of Refurbishment Full Medium Minimal New Build Complete 2,317/m2 1,662/m2 906/m2 Identify and Quantify the Costs

Area of New Build multiplied by Cost/m2 LSC Cost Model 1 3,171/m2

In consideration of any new build scheme, the college must consider the site to be developed, with particular regards to location and site constraints etc as well as the cost of any land purchases, or, if land already held by the college the Costs associated with any ground investigation/land remediation works/demolitions if necessary; whether the existing infrastructure entering the site is of sufficient capacity to meet the colleges requirements. These are a few of the areas that require investigation. Identify the Preferred Option Having reviewed all of the options and prepared detailed option appraisals including the indication of the costs associated, the College should then be in a position to consider and identify its preferred option in terms of both Cost and benefit to the College. It is at this stage the College can then proceed to develop the Preferred Option and seek to appoint a full design team to carry out the necessary works to allow a building contractor to be procured. KME Consultancy Ltd | 36

Development of Preferred Option If the preferred option is a new build then the following areas should be considered jointly with those comments made in Section 8.2.1 previously. Are you trying for a RIBA awarded building? This activity comes with a cost. Are you targeting an Excellent BREEAM rating? Is this likely to be achievable? The allowance within the LSC Cost Model 1 (Issue 3) was 150/m2 It should however be noted that this cost was deemed included within the overall cost of the Project within LSC Cost Model 1 (Issue 4). The use of a 4 walls and a roof approach can ensure maximum use of effective space. Any curved walls creates unusable space and adds to the complexity of buildability, what is the radial curvature of the building, what is the centre point and where, do all the curves come from that centre point or is there multiple points. This then reflects into the materials used for the walls, plaster board, brick work, glass, steel, concrete. Etc. During the design of the building challenge your design team on why they are recommending key elements. Yes they are your technical experts but they will take the safest option possible in their design. Challenge the Architect on their approach to the design of the building because their design leads the other design team members to conform to an approach. If they are recommending curved walls, why? If there are circular roof lights as part of the design ask the question about the benefits of this design. Aesthetically they will be able to provide you with a number of options. Ensure your Mechanical and Electrical Engineer is providing you with a design that has enough plant space to meet the buildings needs, that their approach to the design of lighting is reasonable standard throughout the building. This will support your maintenance team and operational costs in the future. Ask your Structural Engineer to justify why they would recommending piling and not a raft, if it is a raft have they applied this across all areas or is they an approach to limit the raft and use another approach? They are known to over specify sub-structure, frame and roof. Be aware of the point loading on each of the floors being installed. You maybe able to reduce the point loading and therefore reduce costs associated with the concrete. Please note that if you change the point loading on a floor be aware of future limitations that you may create. As an example, if the floor loading has been future proofed in its design, thus capable to take engineering tools, brick work and heavy wood working machinery in the future. If you decide to change the point loading not that these activities can not take place on that floor. Functionality and Operational issues of a building is an area to be considered at the earliest stage with clear requirements identified within the client brief. This can be developed by the Programme/Project Director with the Client for presentation to the design team; the detailed design of this can be worked up as the design progresses over the early RIBA Stages. Additionally examples for consideration in design include: Roof, whole life issues, will this be used for access to external areas, these are to be upgraded to minimise maintenance issues for the future, this will not be assessed in the initial costs. The effect of BREEAM on the roof requirements. External wall, modularise saves money, standard bay sizes, repeat layout, economies of scale and installation. KME Consultancy Ltd | 37

Internal walls and partitions, glazed screens (half height cheaper), rationalise and limit integral blinds (once broken stay broken). Sliding folding partitions mentioned, expensive, does not meet all acoustic levels unless very expensive. Walls, Floors and Ceiling finishes, ensure finishes are adequate and robust, look at the architects stamp. Furniture Fittings and Equipment, Asset register will assist in determining what you have against what you need. Lift and Conveyors installation, Install what is required by legislation and encourage use of stairs where possible. External Works, Design early and in detail as this is a significant proportion of your budget.

Whole life costs; consider the standardised approach to materials to support your operational considerations post development. Also note the life expectancy of your materials and apply this when deciding on the materials to be used within the building. It is not worth putting down a floor material that will last just 2 years and expect it to last 5 years. The other end of the scale is also true; do not use materials that will last 20 years when you know that you will change things around in 5 years. The buildability review should be considered with an expert (building contractor) at the earliest opportunity to prevent potentially large abortive costs and VE. An example of this is the external elevations and the style of cladding/blockwork etc. Standard bay sizes assists in standardising the types of elevation designs, this assists in the manner in which they interface with columns and beams, it also allows a design that can be logistically managed. The manner in which cladding is attachment to the building is a further consideration, some cladding products are complex, onsite manufacturing of attachments is required rather than offsite pre-prepared this level of complexity adds to installation time and labour requirements and as such the overall cost to the external envelope. The builder contractor can assist at an early stage to identify these buildability issues and has a vested interest in keeping his work straight forward. Under two stage tender, the main contractor is appointed under a Pre-Contract Services Agreement which can meet the requirements of expert advice on buildability issues. This contract will need to be effectively managed along with the design team to maximise the benefits from a complete team of professionals. 6.3 Property the Wider Issues When assessing the cost of options to enable the identification of the preferred option/s the following wider property issues should be considered in conjunction with the actual build/refurbishment cost. Lease or Third Party Agreements The College will need to review all such documents to determine whether any new development or refurbishment programmes may be impacted by such agreements. Where there is conflict the College may need to serve break clauses or terminate the agreement if possible. Some agreements will not provide the flexibility for this and it will be necessary for the College to liaise with the third party to come to an KME Consultancy Ltd | 38

arrangement which permits the capital project to proceed in an appropriate timescale. There may be financial implications associated with this, plus solicitors costs. Rights of Way Colleges may have public rights of way, or bridleways crossing their property which may impede on development in some way. The College solution may be to stop up the access temporarily or to reroute it permanently. Costs will be associated with these procedures. S106 of the Town and Country Planning Act 1990. These agreements are a way of delivering or addressing matters that are necessary to make a development acceptable in planning terms. They are increasingly used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing. Matters agreed as part of a S106 must be:

relevant to planning necessary to make the proposed development acceptable in planning terms directly related to the proposed development fairly and reasonably related in scale and kind to the proposed development reasonable in all other respects.

As Colleges provide significant community benefit in terms of education and frequently through recreational facilities there is usually the opportunity for Colleges to negotiate down the value of S106 contributions. 278 & S38 of the Highways Act 1980 - Where a developer needs to make alterations to the public highway to provide vehicular or pedestrian access to a development they must enter into a s278. This may result in the developer undertaking the works themselves or making a financial contribution to the County Council to undertake the works. A s38 agreement is frequently linked to a s278 when a developer want to offer up land within their control for adoption as a public highway, the developer will usually pay a commuted sum to the County Council for the upkeep of the road. Environmental Impact Assessment (EIA) An EIA will flag up the likely impacts of a development on the local environment. As par of a planning application a developer will need to come up with a package which will minimise these impacts on the environment. This may be through investing in providing specialist habitats, or through only undertaken specific activities at certain times of the year. This may impact on the financial as well as practical viability of a project. Rating Business Rates are payable on all property, including properties which are vacant for periods of greater than 3 months. During major capital projects the College may be able to apply to the local authority for a review of the rateable value. For example if properties are demolished, or when major refurbishment of buildings is underway and they are incapable of beneficial occupation. Colleges should seek professional rating advice to ensure that they have an effective strategy to minimise the rates they are paying now and in the future under the 2010 revaluation process Valuation If purchasing or disposing of an asset it is important to know the value of the property in its existing usage, plus any alternative usage which may in fact be greater. This will enable the college to determine whether they are getting best value for the site. KME Consultancy Ltd | 39

Purchase cost & purchasers costs The overall purchase cost of a site will also include Stamp Duty Land Tax and solicitors fees, some contracts may also be structured to include the sellers costs. Disposal costs The College will be liable for their own solicitors and potentially agents fees in this process, unless it can be agreed that the purchaser will meet these. Rights to Light Rights to Light are independent of the planning system. It is possible to cause injury to neighbouring properties through the development of new buildings, or extending existing buildings, which may block natural light. A development which infringes a neighbours right to light may lead to a dispute. This could result in the neighbour seeking a court injunction to have the development cut back. In some instances compensation may be the appropriate remedy. This can either be agreed through negotiation or if necessary a court judgement. There is no one set method for calculating a suitable level of compensation. Party Wall - If as part of the capital project a college intends to carry out construction or alterations which involve:

Work on a wall, floor or ceiling shared with another property Building on the boundary with another property Excavating within 6 metres of an adjoining building

You may find that the work falls within the scope of this Act. If it does, the college must serve the appropriate statutory notices on the adjoining landowners. This is a separate process to gaining planning permission and building regulations. As the College will be the developer it will normally fall to the college.

6.4 Whole Life Costs


When calculating the whole life costs of premises it is important to consider all associated property income and expenditure as this will impact on the assessment. Items to consider: Expenditure Facilities running costs/life cycle cost When considering the cost of a new or refurbishment an overview of the operational/running costs should be fully appreciated. As an example of the elements considered in analysing Life Cycle costs the following table provides an overview of initial 5 years and then following 5 15 years considerations. There is no value against the elements as these will all be on a building by building basis.

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Element 1-5 Roof Stairs Internal Doors Wall Finishes Floor Finishes Ceiling Finishes Fittings Sanitary ware External Works Water Instn Heat Source Heating Ventilation Electrical Comms On-Costs/Disruption/ Management Whole Life Costs Cyclical Costs Soft FM Energy Discount Rate (ave over period) TOTALS XXX,XX XXX,XX -

Total Life Cycle for periods between the years 6 - 10 XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX 11 - 15 16 - 20 XXX,XX 21 - 25 26 - 30 31 - 35

XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX XXX,XX

XXX,XX XXX,XX XXX,XX

XXX,XX XXX,XX XXX,XX -

XXX,XX XXX,XX

XXX,XX XXX,XX

XXX,XX XXX,XX

XXX,XX

XXX,XX

XXX,XX

XXX,XX XXX,XX

This area is mentioned within the LSC applications but on review of the e-mandate data it is clear that Colleges information is skewed. The data presented shows VfM on maintenance and management of the Estate, however, I am sure that the annual budget provided to the Estates department to maintain the estate is not sufficient. This figure will also be used within any future Estates Strategies that are written and again will skew any financial profile of options. Planned Maintenance Planned maintenance should not just be the level of funding that is deemed affordable as a result of college budgetary constraints. It should be the level of expenditure that is required to keep the building in a good condition. Historically, many colleges have only allocated what is affordable in line with the wider college budget and this has led to deterioration of the overall fabric of the building and increasing the backlog

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maintenance. Therefore, when forecasting future budgets a realistic figure to maintain the condition of the building should be applied. A realistic annual maintenance budget will prolong the life of the building, and overall may help to minimise the maintenance figures spent on the building. The costs of maintaining a building in poor condition increase exponentially over time. Backlog Maintenance This is maintenance that has not been planned, or assigned as part of any forthcoming budget. This should include all works to maintain the premises in a good condition, or to bring the building back into a high standard of repair. A regular building condition survey, undertaken by a qualified Building Surveyor, should be part of the Colleges Estate Management Processes. This will help to identify what should be undertaken or considered in the short, medium and long-term. A survey will also provide indicative costs of these works. Business Rates - All colleges are liable to pay business rates on their buildings, if the College is a registered charity they are eligible for a reduced relief rate. The basis for calculating the rateable value of individual College buildings differs depending on use. The categories are: (1) Main college buildings (2) Sports buildings (3) Temporary buildings (4) Living accommodation. (5) Training workshops Colleges which do not have charitable status are liable to pay rates on properties which are vacant after the initial 3 month permitted void has expired. Colleges should therefore check that the rateable value of the property is assessed on the right basis, if the use of buildings has changed this could impact on the rateable value. Furthermore as rates are applied to all buildings, the College should seek to minimise the number of buildings by using space efficiently, including temporary accommodation and huts, so as to reduce any unnecessary expenditure on rates as well as the associated running and maintenance costs. Leasehold Property Costs Where a college rents space for a set term they will not only be liable to pay the annual rent but also dilapidations at the end of the lease, if the lease is not renewed. A value for the dilapidations liability can be assessed via a Building Surveyor and negotiated with the Landlord. Income Leases/ Third Party Agreements Rental income should be taken account of in whole life costing. This may include receipts from sports clubs, youth clubs, foreign language schools and telecoms operators.

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Colleges should ensure that commercial terms are applied on all such agreements so that income is maximised and the Colleges interests are protected. For example, the College should ensure that there are periodic break clauses so that if the College needs to redevelop or dispose of part of the property at a specific time it is possible to do so without penalty.

7 Governance
Governance1 has become one of the buzzwords of our age. Its absence has become a synonym for all that is wrong when mis-management is uncovered. Recent studies and reports have placed increasing focus on governance and the responsibility of senior executives and non-executives in its implementation within their organisations. Delivering the right benefits and outcomes from change requires a structured framework to co-ordinate, communicate, align, manage and control activities involved. Governance provides this framework, through organisation, processes, inputs and outputs, and ways of thinking. This approach enables individuals with the right capacity and capabilities to deliver change on behalf of the Organisation. Governance is the responsibility of all active members within the structure created to manage the delivery of the Estates Strategy. Governance at the programme and project level is different. To provide assurance at all levels and mitigate the risks associated with an organisations portfolio of complex programmes and projects the governance of an organisation needs to be linked with the governance of the programmes and projects it invests in. This provides alignment with the strategic aims of the organisation resulting in a co-ordinated and measurable approach to delivery. Governance will determine the management and leadership constraints at all levels and will encompass, management of finances, planning, risks, issues, change, resources, communications and the benefits and outcomes of the delivery. Governance of a Programme of works is different to the governance of a project. A programme is more interested in the outcomes of a programme rather than the outputs of an individual project. Outputs of a project are the deliverables within time, cost and quality constraints. Outcomes are the effects of change and form the vision for the programme. To achieve desired outcomes, active management of the change process is needed, often including transforming behaviour, attitudes or ways of working. All of which is the desire of this strategy. In simplistic terms a project has a known start and finish date with financial boundaries to provide a specific deliverable. A programme consist of a number of projects, some that will be realised as a requirement as the programme progresses. All projects within a programme add to the overall outcome of the programme.

The Association for Project Management defines governance as: Governance is how businesses can assure the effectiveness and efficiency of their project

management, project sponsorship and portfolio direction and how they can ensure: proper coherent disclosure and reporting of these systems and of their performance.

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7.1 What is a Programme or a Project


A Programme is defined in Managing Successful Programmes as A temporary and flexible organisation created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisations strategic objectives. A project is defined as a Temporary organisation, usually existing for a much shorter period which will deliver one or more outputs in accordance with a specific business case

7.2 Levels of Governance


The levels of governance and style will vary from Corporation through to main contractor and/or sub contractor. This report is not to provide details of how the Corporation should govern a Programme/Project but to provide information that will assist in the development of the appropriate Governance model for your organisation. The approach to governance requires an understanding of the tools available to ensure effective management and monitoring. Previously mentioned are the differing levels of leadership and management and as such it is appropriate to identify aspects of the tool box. These tools will provide the Corporation or Strategic Group, assurance of delivery through effective monitoring. The strategic implications in areas such as risk, finances, communications and contract management are the key performance indicators in an organisations approach to governance. Programme Management Programme Management may be defined as the co-ordinated organisation, direction and implementation of a portfolio of projects and activities that together achieve the outcomes and realise benefits that are of strategic importance to the organisation. It is a framework for implementing business strategies, policies and initiatives or large scale change, within the overall vision of the desired outcome. It breaks things down into manageable chunks with review points for monitoring progress and assessing performance. Programme management provides a framework that integrates and reconciles competing demands for resources and provides a focus for projects. Project Management Under the programme of works the governance required at project management level will consist of the quality and ability of the project managers themselves. The leadership and management styles along with knowledge are key abilities of the project managers to be part of the delivery team of a complex programme of works. Governance of the projects will be through a defined management structure overseen by an experienced Programme/Project Director.

7.3 Documentation to Support Governance


There are a number of documents that are available to support of the Governance of a Programme/Project. Use of OGC excellence website or from the professional team KME Consultancy Ltd | 44

themselves all required documentation can be created. Within the Document the key documents discussed and evidenced are the Project Execution Plan (PEP)and the Room Data Sheet. The PEP is as stated the approach to the delivery of all areas of the Project. This document has a number of names with slightly different content but all will be a live document owned by the Senior Responsible Owner and maintained by the Programme/Project Director on their behalf. 7.3.1 Project Execution Plan (PEP) Annex F, contains a PEP with headings, which is considered for the purposes of this report, the appropriate governance approach to development programmes/projects. The detail within the PEP is extensive and should be considered as a live document which will change as the Programme/Project develops. Within the Annex a URL is provide to give you a link to the OGC website where further information on the PEP is available. 7.3.2 Room Data Sheets (RDS) RDS is a tool that varies from consultant to consultant. Architects will have one style whilst the M&E consultant will have another. The approach you undertake is one that will assist both the professional team but also you the College. This paperwork will help in many aspects; provide a list of requirements per room/space, an inventory of equipment for each room and therefore the College. A review point of requirements against assets held, thus providing the budget holder with an indication of FF&E requirements. Annex E contains a number of templates as examples.

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Annex A Acknowledgements and References


Through this document the writer has used material from a number of sources; these sources are not fully referenced but are derived from OGC Best Practice Website and PPM Blogg 2007. The creation of this document has been a joint effort with the involvement of a number of different individuals and organisations. This page is to acknowledge the help/assistance in the information gathering process and the review and comment of the draft versions. Kevin Moir (KME Consultancy Ltd) Steve Smith, Helen Barclay, Iain Bell (GVA Grimley) Neil Smith (Baqus Boxall Sayer) David Keith (Cyril Sweett) Reviewers; Michael Edmunds (The Project Network), Graham Turner (Leadbitter) OGC website links include: Below is the URL to PEP http://www.ogc.gov.uk/documentation_and_templates_project_execution_plan_.asp Below is the URL to contractor selection advice: http://www.ogc.gov.uk/documentation_and_templates_contractor_selection.asp Below is the URL to Tendering process for consultancy support http://www.ogc.gov.uk/documentation_and_templates_tendering_process_for_consultancy_ support.asp Below is the URL for New from Old: transforming secondary schools through refurbishment; written by:Steven Pidwell, Shepheard Epstein Hunter, and CABE www.cabe.org.uk/publications/new-from-old

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Annex B Glossary of Terminology


Appendix 1 - Abbreviations
RIBA BWIC M&E SE DBIS DCSF LSC YPLA SFA LGA PEP CSR MOG DIUS AoC AiP AiD LLDD HEFCE EBITDA LOBO BREEAM PFI PPP PSBR CABE - Royal Institute British Architects - Builders Works in Connection - Mechanical and Electrical - Structural Engineer - Department for Business Innovation and Skills - Department for Children Schools and Families - Learning Skills Council - Young Peoples Learning Agency - Skills Funding Agency - Local Government Association - Project Execution Plan - Comprehensive Spending Review - Machinery of Government - Department for Innovation Universities and Skills - Association of Colleges - Application in Principle - Application In Detail - Learners with Learning Difficulties or Disabilities - Higher Education Funding Council for England - Earnings Before Interest Tax, Depreciation and Amortisation - Lender Option Borrower Option - BRE Environmental Assessment Method - Private Finance Initiative - Public Private Partnership - Public Sector Borrowing Requirement (Public Debt) - Commission for Architecture and the Built Environment KME Consultancy Ltd | 47

Appendix 2 Roles and Responsibilities


Corporation/Senior Management Team (SMT): Sets the strategic vision and objectives for a given program or project. The team leads efforts to build consensus through the organization to support the project or programs objectives. Programme/Project Board: Formal team of executives from across the organization that ensure projects will meet/are meeting organizational goals. Programme/Project Sponsor/Senior Responsible Owner: Provides clarity of the project vision, and directs the activities of the project team. Allocates funding and resources to the project. Provides executive authority necessary to overcome organizational obstacles and barriers. The guardian of the business case, and ultimately responsible for project success. Project Management Office: An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those programs/projects under its domain. Project Stakeholders: Persons or organizations (customers, sponsors, performers, public) that are actively involved in the project or whose interests may be positively or negatively impacted by executing or implementation of the project. Program Manager/Project Director: Person responsible for the strategic, centralized, coordinated management of a program (group of related projects) to achieve the programs strategic objectives and benefits. Project Manager: The person assigned by the performing organization to achieve the project objectives. The project manager is responsible for coordinating and integrating activities across multiple functional lines, and managing stakeholder communications. The project manager accomplishes the above by managing project scope, time, cost, and quality. Finally, the project manager applies project management, general management and technical skills, as well as team management, negotiation, financial and business acumen, combined with an understanding of organizational politics to meet project objectives and to meet or exceed stakeholder expectations. What additional responsibilities should be added? Possibly consider the elements of the MSP guidance on roles and responsibilities Strategic Property Advisor Programme/Project Director Programme Manager Project Manager Architect Structural/Civil Engineer Mechanical and Electrical Engineer Cost Consultant/Quantity Surveyor KME Consultancy Ltd | 48

Planning consultant Employers Agent Archaeological, ecological transport Consultant, Landscape Architect, Building Control, Fire Consultant, BREEAM Assessor, Acoustician, Theatre/AV/digital media consultant, Security, CDM Co-ordinator

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Annex C - RIBA Stages

RIBA Work Stage (Common name)

People involved

Purpose of work and decisions needed

Stage A Appraisal (Briefing)

All client interests, architect/ lead designer (depending on procurement route)

PREPARATION

Identification of Client's requirements and any possible constraints on development. Preparation of studies to enable the Client to decide whether to proceed and to select the probable procurement method. The latter is a particularly important decision, as it will determine the way in which project resources, responsibilities and risks are apportioned between the Client and its consultants and contractors.

Stage B Preparing Strategic Brief

Clients representatives, consortium/ Partnering team members, architects, engineers and QS according to the nature of the project.

Preparation of general outline of requirements and planning of future action on behalf of, the client with client confirming key requirements and constraints. Identification of procedures, organisational structure and range of consultants and others to be engaged for the project. The strategic brief is a key output from this stage and becomes the clear responsibility of the client.

Stage C Outline proposals Stage C begins when the architects brief has been determined in sufficient detail (Sketch plans) DESIGN

All client interests, consortium/ Partnering team members, architects, engineers, QS and specialists are required.

Provide the client with an appraisal and recommendation in order that they may determine the form in which the project is to proceed. Ensure that it is feasible functionally, technically and financially. At this point the development of the strategic brief into the full project brief begins and outline design proposals and cost estimates are prepared.

Stage D Scheme Design & Planning; Detailed Proposals; Submit Planning Application (Planning drawings)

DESIGN

All client interests, architects, engineers, QS and specialists and all statutory and other approving authorities, contractor (if appointed).

Determines the general approach to the layout, design and construction in order to obtain authoritative approval of the client on the outline proposals. The project brief will be fully developed and detailed proposals will be made and compiled, generally in a Stage D report. The application for full development control approval will be made at this point.

Stage E Detail Design; Final proposals.

DESIGN

All client interests, architects, engineers, QS and specialists and all statutory and other approving authorities, contractor (If appointed).

Completion of the brief with decisions made on the planning arrangement, appearance, construction method, outline specification and cost of the project. All approvals will be obtained at this stage, including for Building Regulations. In effect, during this Stage final proposals are developed for the Project sufficient for co-ordination of all its components and elements to realise the construction.

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Stage F Production information

Architects, QS, engineers and specialists, contractor (if appointed).

Final decisions taken on every matter related to design, specification, construction and cost. For a traditional procurement process, production information is first prepared in sufficient detail to enable a tender or tenders to be obtained. Any further production information required under the building contract to complete the information for construction is then prepared. All statutory approvals should be obtained by the end of this phase.

DESIGN

RIBA Stage G DESIGN Tender documents; Bills of Quantities

Architects, engineers and specialists. Contractor (if appointed)

Prepare and collate tender documentation in sufficient detail to enable a tender or tenders to be obtained for the construction of the Project. It should be noted that this Stage is much more relevant to Traditional forms of procurement.

RIBA Stage H Tender action DESIGN

Architects, QS, engineers, contractor, client.

Prepare and complete all information and arrangements for obtaining tender(s). Identify potential contractors and/or specialists for the construction of the project. Tenders obtained and appraised with recommendations made to the client body or Steering Group to allow an appointment to be made. It is important that the contractors understanding of, and commitment to, the project vision and its sustainability is tested at this stage. This can be achieved by the inclusion of this as a key selection criterion early in the procurement process.

RIBA Stage J Project Planning; Mobilisation

Architects, QS, engineers, contractor, client

Building contract let and contractor appointed Production information issued to the contractor Site is handed over to the contractor

(Site Operations)

CONSTRUCT

RIBA Stage K Operations on Site; Construction to Practical Completion

Contractors, sub-contractors

(Site Operations)

Contractor programmes the work in accordance with the contract and commences work on site. The client or their representative - the architect in Traditional procurement - administers the building contract up to and including practical completion (this is the point at which the contractor hands back ownership of the site and completed project to the client). Further information supplied to the contractor as and when reasonably required.

RIBA Stage L Completion

Architects, engineers, contractors, sub-contractors, QS, client

This Stage is clearly separated from the construction phase. Final inspections are made to ensure specifications have been met. In addition, the final account is settled

(Site Operations)

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RIBA Stage M Feedback

Architect, engineers, QS, contractor, client, users as appropriate

At this Stage, the building has been handed over to the client for occupation. Any defects will have been remedied and the final account settled. This allows the management, construction and performance of the project to be assessed.

USE

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Annex D Professional Fees Through RIBA Stages against a Construction Cost


RIBA Design Stage Pre-Contract Fee as a Percentage of Construction Cost. The figures are ex VAT 85,000,000 Stage A&B Inception & Feasibility Stage C Outline Proposals Stage D Detailed Proposals Stage E Final Proposals Stage F Production Information Stage G-L Tender & Construction Post Contract

Project Manager Architect Landscape Architect Structural & Civil Engineer Mechanical & Electrical Services Quantity Surveyor Transport Consultant Building Control BREEAM Consultant Acoustician Fire Consultant Theatre/AV Security Employer's Agent CDM Co-Ordinator Planning Consultant

0.6650% 3.9500% 0.1900% 1.3000% 1.1500% 0.5700% 0.2941% 0.1765% 0.1176% 0.0588% 0.0588% 0.0588% 0.0588% 0.5000% 0.2500% 0.2500%

565,250 3,357,500 161,500 1,105,000 977,500 484,500 250,000 150,000 100,000 50,000 50,000 50,000 50,000 425,000 212,500 212,500

56,525 335,750.00

169,575.00 839,375.00 32,300.00 221,000.00 195,500.00 96,900.00 62,500.00

282,625.00 1,343,000.00 64,600.00 442,000.00 391,000.00 193,800.00 125,000.00 52,500.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

395,675.00 2,014,500.00 96,900.00 663,000.00 586,500.00 290,700.00 175,000.00 105,000.00 50,000.00 30,000.00 30,000.00 30,000.00 30,000.00 42,500.00

508,725.00 2,686,000.00 129,200.00 884,000.00 782,000.00 387,600.00 225,000.00 127,500.00 75,000.00 37,500.00 37,500.00 37,500.00 37,500.00 127,500.00 191,250.00 212,500.00 79% 6,486,275.00

565,250.00 3,357,500.00 161,500.00 1,105,000.00 977,500.00 484,500.00 250,000.00 150,000.00 100,000.00 50,000.00 50,000.00 50,000.00 50,000.00 425,000.00 212,500.00 212,500.00 100% 8,201,250.00

53,125.00 53,125.00 4% 21% 1,723,400.00

106,250.00 106,250.00 39% 3,232,025.00

148,750.00 212,500.00 60% 4,901,025.00

Cumulative Percentage of Total Fee Expenditure

9.6485%

8,201,250

392,275.00

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Annex E - Elemental Analysis of Costs

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Annex F Project Execution Plan (Example Headings)

PROJECT EXECUTION PLAN

??????

Release: Draft Date: 2009

Author: Client: Document Number:

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Approvals
This document requires the following approvals. Signed approval forms are filed in the Management section of the programme files. Name Signature Title Date of Issue Version

Distribution (Including Version)


This document has been distributed to Name Title Date of Issue Version

Project Execution Plan


Purpose of Document

Date

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Background

Project Definition

Project Brief

Project Roles/Responsibilities and levels of Authority Corporation Project Board Senior Responsible Owner Project Executive Project Director Project Management Office
Capital Project Manager

Employers Agent

Employers Agent (Internal)

IT Programme Manager

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Relocations (Exit) Programme Manager

Programme Accountant

Project Support Officer

Communications

Project Financial Management Financial Plan Financial Procedures Procurement Contracts Governance Risk Management

Change Management

Programme Management
Design Stages

Development Plan KME Consultancy Ltd | 58

Commissioning

Operational

Health & Safety

Plans Relevant to Health & Safety

Environment

Quality Assuance

Post Project Evaluation

Administrative Systems and Procedures

KME Consultancy Ltd |

59

APPENDIX XXXXX TO ANNEX XX TO: DATED:

Terms Of Reference

KME Consultancy Ltd |

60

ANNEX XXXXX TO: DATED:

Communications Plan

KME Consultancy Ltd |

61

ANNEX XXXXX TO: DATED:

Financial Plan

KME Consultancy Ltd |

62

ANNEX XXXXX TO: DATED:

Risk Management

KME Consultancy Ltd |

63

ANNEX XXXXX TO: DATED:

Change Management

KME Consultancy Ltd |

64

ANNEX XXXXX TO: DATED:

Programme Management

KME Consultancy Ltd |

65