Effective estate management: A guide to self-assessment

Executive summary

1.         This is a guide to the self-assessment of estate management in higher education in England.  It has been developed with the help of the Association of University Directors of Estates (AUDE) and the Standing Conference of Principals Estates Group (SCOPEG).  It is not intended to be prescriptive: it is for each institution to decide how, and how far, they wish to apply this guidance.

2.         Our aim is to provide examples of good practice, and identify the common principles.  We hope thereby to help heads of institutions, senior managers and directors of estate to manage more effectively and so stand a better chance of delivering their institution’s strategic goals.

3.         The guidance sets out an approach which reflects conventional strategic estate management processes, because these are the most widely employed approaches in the sector.  But we recognise that the diversity of the sector means that there is no ‘right’ way and there will be many variations on how strategic estate management is developed and deployed.

Overview and key messages

4.         The guidance discusses the key elements of estate management namely:

a.         Management and systems.

b.         Strategy.

c.         Maintenance.

d.         Building projects.

e.         Space management.

f.          Commercial operations.

5.         It consists of a series of questions designed to help senior managers analyse their current approach and prompt discussion on whether improvements could be made. We also hope it will help institutions to identify what they do well, in order that they can share that with others. The key principles that underlie this framework can be summarised as follows.

Planning is essential 

6.         The estate strategy is an essential tool for effective estate management.  Unless time is invested to analyse the institution and its environment, and to consider its medium and long-term direction and goals, it is unlikely that action will be focused or goals achieved.  It is partly through effective planning that institutions identify what makes them distinctive and what they have in common with other HEIs.

Estate management processes need to be systematic and supportive of the institution’s academic operations

7.         Estate management is not an end in itself. Unless estate management is undertaken in a methodical and systematic way such that it is aligned with the academic needs of the institutions, it will only be of limited benefit. That puts a responsibility on both estate professionals and the academic community. In particular, unless there is communication and consultation throughout, there will be little sense of ownership and little motivation to work towards the achievement of the institution’s strategic objectives.

The governing body has a key responsibility

8.         The governing body is responsible for the direction of the institution, monitoring the implementation of key decisions that affect the institution’s estate and for ensuring that the institution gets the best return on its investment. Institutions will therefore find it helpful to have estates expertise within the governing body.

Space is a key resource and must be actively managed

9.         One of the major opportunities that institutions face is the chance to optimise use of their available space. The level of Poor Estates bids indicates that there are significant problems with the nature and quality of space across the sector. This means it requires active management if the best use is to be achieved.

Good staff and information are essential

10.       If institutions are to tackle the range of challenges and opportunities that they face, they need committed, professional and flexible staff. At a minimum they will need a core function required to act as the intelligent client with knowledge of the institution’s estate. These staff need to be organised effectively and have access to appropriate information systems and data. They should actively contribute to the senior management team of the institution.

Estate expenditure

11.       Appropriate budgets need to be set to address the level of work identified as necessary by the institution to achieve: a suitable learning, teaching and research, and social environment; statutory compliance; maintain building condition and energy efficiency.

Effective estate management – introduction and overview

Introduction

12.       The importance of good estate management has become increasingly  recognised over the last few years.  All institutions understand the need to ensure their mission and objectives are supported by effective arrangements to manage the estate and its associated facilities. However, the challenges and opportunities facing higher education estate managers are growing year by year. All of this places a premium on good management: the quality of estate management must itself improve year by year.

13.       In this, as in many areas, higher education institutions vary. There is no single right way to undertake estate management: what matters is what works, and that is the basis of this framework. However, there is a risk that any framework may be used in a way which becomes prescriptive seeking to impose a single model which may be inconsistent with what works in practice for individual institutions.

14.       We take this concern seriously since good management cannot be imposed externally.  It happens only if individual institutions want to do it.  So in this project we are not seeking to prescribe a single approved model.  Instead, we have sought to prompt discussion, based on key principles, with a view to providing a useful overview for those who want it.  We have involved the representative bodies institutions and a selection of UK institutions at every stage in the project.  We hope that all institutions will find something to reflect on if they deploy this approach.

 

Use and content of the guide

15.       The guidance is primarily designed for heads of institutions, heads of estates and their management groups. We hope that institutions will wish to:

a.         Review their arrangements collectively (ideally involving colleagues from other institutions).

b.         Report the results of that review to their own governing body.

c.         Offer any examples of good practice to HEFCE for wider dissemination across the sector.

Sources of information

16.       In establishing the current situation, it is helpful to refer to a range of information sources, both to verify individuals’ perceptions and in some cases test recollections. Possible sources include:

·         strategic plan

·         estate strategy

·         estate management information, particularly tenure, condition and functional suitability

·         estates staff

·         senior management team

·         grant applications

·         estate management statistics (when available)

·         estates committee minutes

·         service level agreements

·         chair of estates committee (if it exists)

·         departmental heads.

Self-assessment

Background 

To get a real understanding of the context in which estates operates, it can be helpful to establish a number of background facts:

1.         The scope of the estates function.

2.         The number of properties.

3.         Location of property.

4.         Tenure of property.

5.         Age mix of property.

6.         Condition of property.

7.         How is the estates function structured?

·         responsibilities

·         reporting lines

·         committee structures.

Management and systems 

8.         How is the estates function represented on the key senior management team?

9.         How often is there contact between estates officers and other senior management?

10.       Is there any formal commitment to quality (IIP, Business Excellence Model, BS5750)?

11.       What is the basis for establishing the staffing and structure of the estates function?

12.       What assessment of staff competencies has been carried out?

13.       Is there an appropriately resourced staff development strategy for all the estates staff?

14.       What areas are you using information systems in?

15.       What use is made of CAD and IT-based estate management information systems?

16.       Does an estates terrier exist?

17.       Do systems identify costs of individual buildings? If so, how is this data used?

18.       How is the performance of the estates function monitored:

a.         Within the estates team?

b.         By the senior management team?

c.         By the governing body?

Strategy and planning

19.       What are the major issues confronting the institution?

20.       How does the estates function contribute to the institution’s strategic development process and is this measured against the guidance issued by the Funding Council?

21.       How does the HEI ensure that the estate strategy is consistent with its mission and the academic strategy?

22.       When was the estate strategy prepared?

23.       What was the process used in developing the estate strategy?

a.         Who was involved?

b.         What groups were established?

c.         What were the information sources?

d.         How was the:

i.          Local community

ii.         Staff

iii.        SMT

iv.        Students

v.         Governors involved?

e.         What steps are taken to involve the Local Planning Authority to ensure the institution’s interests are fully regarded?

f.          How far have future needs been considered?

24.       How and to whom was the strategy disseminated?

25.       How does the estate strategy deal with uncertainties eg. windfall gains, capital bidding etc?

26.       How is the estate strategy translated into costed operational plans?

27.       What are key performance targets for the estates department?

28.       If there is no formal up-to-date estate strategy, how will the HEI plan new developments and ensure the effective and efficient use of properties?

29.       How does the strategy take into account external factors (e.g. the impact of NHS reforms on medical and dental schools)?

30.       What is the review process for the estate strategy?

Maintenance

31.       Has the institution used or does it intend to use the HEFCE Building Repairs and Maintenance VFM guide (98/30 & 98/31)?

32.       What was the outcome?

33.       Has the institution got a maintenance investment plan? (What period? When prepared? What are the key frequencies?)

34.       How were quality standards determined?

35.       What is the condition of the estate?

36.       How is condition addressed?

37.       What is the method for establishing level of resources made available?

38.       What are the contractual agreements for maintenance? (day works? term contracts?)

39.       What are the arrangements for establishing quality of work done?

40.       What other performance monitoring arrangements are there?

41.       What reports are provided to SMT and governors?

42.       How does the HEI plan maintenance?

43.       What is the balance (in percentage terms) between planned and reactive maintenance?

44.       What life cycle model is used for planned maintenance?

45.       What management information is regularly provided and to whom?

46.       How are maintenance requests logged, prioritised and what is the response rate? What is the backlog?

47.       Is there a help desk or web enquiry system?

48.       Are there building maintenance manuals?

49.       How is overall productivity, cost and quality measured and managed and how does this inform the procurement decision?

50.       How does the HEI measure whether it maintains properties in the most cost-effective way?

51.       Has there been an assessment of the fitness for purpose of property?

Capital

52.       How is the institution’s capital programme developed?

53.       How are the needs assessed?

54.       How are the Local Planning Authority (and any other) constraints accommodated?

55.       Has the institution assessed its current arrangements against the guidance issued by CVCP ‘Procurement Guidelines for HE Building & Engineering Projects’?

56.       For major projects, consider tracking one through the system in detail:

·         Why was it needed (and how was that known)?

·         How were user needs and the project brief established?

·         How was it designed?

·         How were quality and performance specifications established and agreed?

·         How were staff, students and governors involved?

·         Who was project sponsor, user representative, project committee and project advisor?

·         Was a formal risk assessment carried out?

·         Was that part of option appraisal?

·         What options were considered?

·         What approvals were necessary?

·         What procurement strategy was used and why?

·         Who was project manager and when appointed?

·         Was a project implementation plan drawn up?

·         Was value engineering used?

·         Have whole life costs been considered?

·         Are EC procurement regulations observed?

·         How were consultants chosen and engaged?

·         What checks are undertaken on professional indemnity insurance?

·         How is CDM implemented?

·         How were contractors selected and appointed?

·         What arrangements exist for change control and financial reporting?

·         Was the institution’s procurement expert used? How is best value achieved?

·         What were the arrangements for fitting out?

·         Was a post-implementation review conducted?  If so, what was the method and result?

57.       Has the institution considered recent industry initiatives, eg. Latham, Egan and the Construction Best Practice Programme?  

Space management

58.       Does the institution assess the utilisation of its:

a.         Research space?

b.         General teaching space?

c.         Specialist space?

d.         Administrative space?

59.       What is the level of space utilisation? Is it increasing or decreasing?

60.       How is it measured and how often?

61.       How are space needs assessed?

62.       How is space allocated and managed?

63.       Are space audits undertaken? How regularly ?

64.       What is the basis for space planning in teaching and in research?

65.       Is space charging used and how?

66.       Is central time-tabling in place? If so:

·         what proportion is timetabled?

·         who is responsible?

·         what system is used?

Commercial operations

67.       How does the HEI identify all potential income-earning opportunities from properties?

68.       How does it set student rents? If below economic rents (including maintenance and finance costs) or local market levels, is this explicit governing body policy?

69.       How does it set charges to students and staff for the use of other facilities (e.g. sports and car parking)? Are these economic rates?

70.       Is there a clear policy for charging external users of facilities? How does it ensure that it incurs no loss?

71.       Who is responsible for negotiating terms and conditions for leases and licences?

Health and safety

72.       The head of the institution is responsible for health and safety. However, is there a designated health and safety officer who provides advice and ‘audits’ the H & S environment?

73.       What are the reporting lines on H & S?

74.       How does the institution keep up to date with H & S legislation? What are the sources of information?

75.       How is legislation compliance checked?

76.       Are H& S audits undertaken? How often?

77.       Have any H & S notices been served on the institution?

78.       What sort of relationships are fostered with the:

a.         Fire officer?

b.         Factory inspector?

c.         Home Office inspector?

79.       How is H& S training need identified and provided?

80.       How does the institution ensure that health and safety responsibility is clearly defined in areas such as:

a.         Animal houses/Biological Sciences?

b.         Radiation protection?

c.         Incineration?

d.         Waste disposal?

e.         Laboratory fume cupboards?

f.          Statutory testing of pressure vessels, lifts etc?

g.         Others, where the responsibility may be split?

81.       Who undertakes fire risk assessments? Is there a fire prevention officer? Has a comprehensive set of assessments been carried out?

82.       Are HSE risk assessments undertaken?

83.       Who maintains the statutory registers, such as the asbestos register, electrical testing register etc?

84.       How do you manage construction health and safety?

Environmental issues and energy management

85.       Are buildings individually metered?

86.       Has the institution adopted an environmental policy?

87.       Has the energy VfM guide been applied?

88.       Is the consumption of utilities monitored? Are leakage tests conducted (particularly water)?

89.       Are utility budgets developed?

General

90.       Does the institution have an access policy?

91.       Has the institution carried out an access audit?

92.       How often is the estate assessed for insurance values and is the estates department involved? What is the basis for valuation and is this valuation used for any other purpose?

93.       Is there a properly tested business continuation plan?

94.       Has the institution undertaken a property valuation?

95.       Who deals with the institution’s rating matters?

96.       What are the three best elements of the estates management arrangements and can any examples be used for the HE Estates Web site?

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Conclusion

	Good practice	Satisfactory	Room for improvement
Management
Strategy
Capital
Maintenance
Space
General

Key findings/Issues for report

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