Tony Gale Construction & Asset Management Programme SW RIEP WHOLE LIFE COSTING & WHOLE LIFE...

Tony Gale

Construction & Asset Management Programme

SW RIEP

WHOLE LIFE COSTING & WHOLE LIFE VALUE

for PROPERTY CONSTRUCTION

What’s the big deal?

• 1 : 5 : 200

• Sustainability

• Outcomes focus

• CPA / CAA new emphasis

DEFINITIONS

Whole Life Cost – “the capital cost of a project and all relevant future costs”

Whole Life Value – extends the definition to include reference to the value / quality aspects specific to the project

Whole Life Cost – “the capital cost of a project and all relevant future costs”

• “Capital Cost” – OK, but notoriously fluid

• “All relevant future costs”

– ALL– RELEVANT– FUTURE

“all”

• 1 = Construction cost

• 5 = Lifetime operational costs

• 200 = Cost of the service operating from the property

1 : 5 : 200

“all relevant lifetime operating costs”

• FM - maintenance, repairs, utilities, cleaning, insurance, caretaking and security

• but what about catering, laundry, IT provision, photocopying, mail handling and other office services?

“future”

• For how long?

• 25 years?

• 60 years? (BREEAM)• 10 years? (“realistic horizon”

for calculating discount rates?)

…and your evidence for that is?

• How to get sound data for running costs

• How to model it to different options

• How to demonstrate “whatactually happened”

All Pull Together

• Standard Model

• Benchmarking

• Networking

• SCQS

• coordinated by SW RIEP

• ditto

All Pull Together

• CAPEX and OPEX captured for each project (including rejected options)

• Comparison available at key stages (Commit to Invest, Commit to Construct, Available for Use) – and “in use”

• Prediction vs. reality

Whole Life

VALUE

VALUE =FUNCTION_____________________

COST

Whole Life Value

VALUE =FUNCTION_____________________

COST

WHOLE LIFE

WHOLE LIFE

WHOLE LIFE

But what about

this bit?

We know about this

bit….

VALUE =FUNCTION_____________________

COST

WHOLE LIFE

WHOLE LIFE

WHOLE LIFE

To maximise value…

bigger

smaller

Whole Life

VALUEWill I recognise it when I see

it?

It’s all about OUTCOMES

– how do we demonstrate the contribution made by property to service / corporate goals?

– how can we determine how different development options stack up?

Values and Outcomes

• Value Trees

– Dorset CC work with CYPS

• “Every Child Matters” themes

• weighted by client

• mapped against design elements

DCSF “Every Child Matters”– Be Healthy

– Enjoy & Achieve

– Stay Safe

– Achieve Economic Wellbeing

– Make a Positive Contribution

Not “Lost in Translation”

• Translate “Every Child Matters” objectives into an outcome specification

• e.g. “Be Healthy” relates to Space requirements, Comfort

• Comfort requirements break down into Light, Heat, Ventilation, Cleanliness,Colour

Iterative Process!

Use it:-

• to clarify thinking within the project team

• to inform feasibilities

• to compare options

• to guide design development

• To generate a score for FUNCTION

…back to the formula

VALUE =FUNCTION_____________________

COST

WHOLE LIFE

WHOLE LIFE

WHOLE LIFE

But what about

this bit?

We know about this

bit….

And this bit

• Work in Progress!

• To be developed with pilot projects

• Potential partner organisations include SCQS, IPF, COPROP

Contact details

• Tony GaleTony Gale

• Construction & Asset Management Construction & Asset Management Programme (SW RIEP)Programme (SW RIEP)

• tony.gale@beaufortwest.co.uk

• 01363-77610801363-776108