1. Global construction consultants SPENDING WISELY Laurence Brett Partner Davis Langdon LLP

2. Introduction General Observations Back to Basics Current/Future Pressures Allocating Capital Spending Sustainability

3. General Observations 130 HEIs 130 Estates teams Over 130 solutions/opinions of Procurement route Contract Attitude to risk Value Sustainability demands

4. Back to Basics Estate Strategy The Brief The Team

5. Back to Basics When is the biggest commitment made? When are the biggest mistakes made? Right at the outset

6. Estates Strategy All Universities have a vision Does Estates Strategy align with University Vision?

7. The Current Estate Do you know what you already have? Do you know how well it is being used? What is it really costing to run?

8. Your Next Project Where is the demand for it coming from? How robust is that demand? Is there really no other way of providing the space?

9. Setting the Brief Is it clear? Limits set? Area / Budget / Use? Does a feasibility study exist?

10. Appointing the Team Clarity of roles Clarity of responsibilities Gaps in appointments cost money. So do overlaps

11. Who is the Client? Estates Departments? Finance Committee? End Users? Maintenance Department?

12. So What do the Best in Class Do? Have an audit process Have a space planning resource Have a time tabling resource Link them

13. So What do the Best in Class Do? Have a briefing process that the users sign off Have clarity over their internal structure Have clarity over internal approvals process Have a common set of appointments Have clarity over roles and responsibilities

14. Current/Future Pressures Capital availability Maintaining the current estate Sustainability Energy Prices Carbon Reduction commitment

15. Capital Availability Accelerating ‘Spade-Ready’ projects Capital Investment Framework changes Alternative methods of financing

16. 2011 - 2014 The era of rationalisation Refurbishment – True sustainability? Time for Innovation? Time for Iconic building?

17. Allocating Capital Spending Lower Value Lecture Theatres Cellular Offices VAT

18. Allocating Capital Spending Higher Value Atria/Informal Learning areas Scientific Research

19. Sustainability Challenges Carbon Reduction BREEAM Student Survey Planning requirements for renewable energy Increased Building Regulations

20. Cost trend to achieve BREEAM ratings BREEAM Rating Capital Cost Increase PassGood Very Good Excellent 6% 4% 2% 0% 14% 12% 10% 8% Outstanding Traditional “add- on” approach Holistic sustainable design & construction approach Davis Langdon 2008

21. Sample scenarios for reducing energy consumption % Energy Reduction Technologies Implemented %Capex Increase %CO 2 Reduction 25% Intermediate energy efficiency* Ground source heat pump Roof-top wind turbines Solar thermal hot water & PV array 2.2%15% 25% Intermediate energy efficiency* Solar thermal hot water 2.4%20% 37% Advanced energy efficiency* Solar thermal hot water 3.3%28% 37% Advanced energy efficiency* PV arrays 3.8%31% 50% Advanced energy efficiency* Ground source heat pump Solar thermal hot water & PV array 5.9%42% * Energy efficiency measures include higher levels of insulation, efficient M&E plant and lighting coupled with lighting controls.

22. How effective are low carbon technologies? What levels of reduction in CO 2 emissions? What level of improvement in energy consumption? What capital costs? What savings in utility costs? What lifecycle costs? What pay-back periods? What impacts on how we build? What impacts on land use & site densities?

23. Key findings from studies 1. There are several ways of achieving CO 2 and energy improvements in excess of 50% in all building types without introducing fundamental changes to how they are built. 2. There is a law of diminishing returns with thermal insulation upgrades. Use of low carbon technologies can often achieve the same impact for lower capital cost. 3. Different building types have very different energy use profiles and require different solutions. 4. There is not always a direct correlation between reductions in CO 2 emissions and reductions in energy consumption. 5. For new buildings, the payback periods for micro-renewables are typically in excess of 20 years. For existing buildings, payback periods of 5-10 years are more common. 6. The analysis is highly sensitive to future energy price inflation Payback periods can be quite long, but high levels of energy price inflation strengthen the economic argument.

24. Effectiveness Kg Carbon saved / £ Conflicting Agendas Building form, massing and orientation Passive ventilation strategy Daylight strategy Exposed mass Lighting Controls Shading Reduced Air Leakage Glazing Specification Insulation Biomass Boilers Solar Hot Water Generators Ground Source Heat Pump CHP Wind Turbines Small Scale Hydro Photo Voltaic Fuel Cells GEOMETRY FACADE TECHNOLOGY PR Value Visibility of Technology

25. Time to name and shame Who does it well? Who doesn’t