1. Tony Gale Construction & Asset Management Programme SW RIEP WHOLE LIFE COSTING & WHOLE LIFE VALUE for PROPERTY CONSTRUCTION

2. What’s the big deal? 1 : 5 : 200 Sustainability Outcomes focus CPA / CAA new emphasis

3. 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

4. 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

5. “all” 1 = Construction cost 5 = Lifetime operational costs 200 = Cost of the service operating from the property 1 : 5 : 200

6. “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?

7. “future” For how long? 25 years? 60 years? (BREEAM) 10 years? (“realistic horizon” for calculating discount rates?)

8. …and your evidence for that is? How to get sound data for running costs How to model it to different options How to demonstrate “what actually happened”

9. All Pull Together Standard Model Benchmarking Networking SCQS coordinated by SW RIEP ditto

10. 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

11. Whole Life VALUE VALUE = FUNCTION _____________________ COST

12. Whole Life Value VALUE = FUNCTION _____________________ COST WHOLE LIFE But what about this bit? We know about this bit….

13. VALUE = FUNCTION _____________________ COST WHOLE LIFE To maximise value… bigger smalle r

14. Whole Life VALUE Will I recognise it when I see it?

15. 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?

16. Values and Outcomes Value Trees –Dorset CC work with CYPS “Every Child Matters” themes weighted by client mapped against design elements

17. DCSF “Every Child Matters” –Be Healthy –Enjoy & Achieve –Stay Safe –Achieve Economic Wellbeing –Make a Positive Contribution

18. 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

21. 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

22. …back to the formula VALUE = FUNCTION _____________________ COST WHOLE LIFE But what about this bit? We know about this bit…. And this bit

23. Work in Progress! To be developed with pilot projects Potential partner organisations include SCQS, IPF, COPROP

24. Contact details Tony GaleTony Gale Construction & Asset Management Programme (SW RIEP)Construction & Asset Management Programme (SW RIEP) tony.gale@beaufortwest.co.uktony.gale@beaufortwest.co.uktony.gale@beaufortwest.co.uk 01363-77610801363-776108