July 2, 2014

RIBA calls on next Government to put built environment centre stage

by Sara Bean • Architecture, News, Property, Public Sector

A new report from The Royal Institute of British Architects (RIBA) sets out a number of recommendations for the next UK Government and calls for greater economic leadership from English cities to rebalance the UK economy and take some of the pressure off London and the South East. RIBA’s report, Building Better Britain: A vision for the next Government, advises that by focusing on architecture and the built environment, the next Government will be better placed to address a sluggish economy, a shortage of new homes, an aging population and the effects of climate change. Building on the findings of the Farrell Review, the report is intended to provide policy makers with a greater understanding of the impact of how places are designed, planned and built and how they affect our day to day lives.

June 18, 2014

Public sector procurement skills at heart of updated UK Civil Service plan

by Mark Eltringham • Knowledge, News, Public Sector, Technology

The UK Civil Service has outlined the latest developments in the way it procures goods and services as part of its updated Civil Service Plan for 2014/15. These include a fresh take on the way the Crown Commercial Services (CCS) function operates with private sector firms. This is seen as an essential part of the new form of public sector procurement within the context of a Civil Service which ‘understands the private sector and can work confidently with them, whether purchasing goods and services through complex procurement or learning from them to enhance customer service’. The new approach to public sector procurement will be built on a range of new management skills and schemes to recruit new types of managers which will allow Government departments to share ideas and best practice and collaborate more effectively with suppliers and consultants. The document also emphasises the expansion of digital capabilities of the public sector services as a way of working with private forms and individuals.

June 12, 2014

UK public sector estate now reduced by 2 million square metres over three years

by Mark Eltringham • Facilities management, News, Property, Public Sector

The UK Cabinet Office has today issued the latest edition of its regular State of the Estate Report which shows that the government has reduced the size of the public sector estate by 2 million square metres since 2010 – which it claims will boost economic growth and save a cumulative £1.2 billion with more savings in the pipeline. Now in its third year, the report also shows that: during 2013 there was a 500,000 sq m reduction in the size of the estate; £240 million was saved on running costs, against a 2009 to 2010 baseline; there was a 7.6 percent reduction in the cost of office space per employee; office space per employee was down from 13 square metres to 11.9 square metres; carbon emissions were down by 14 percent; and waste produced was down by 15 percent. The reductions are a core element in the Government’s plans to consolidate and modernise the public sector estate.

June 6, 2014

Audit commission urges UK councils to make better use of property

by Mark Eltringham • News, Property, Public Sector

UK local authorities should make better use of their £170 billion estate, including divesting or reusing around £2.5 billion worth of surplus assets, according to a new report from the Audit Commission. The report acknowledges that the estate has already shrunk by a third over the last decade but says there is still scope for councils to be more proactive in the way they manage property, not least when it comes to decisions about the use of idle or underused buildings and land. As the local government estate continues to shrink due to spending cuts and a range of Central Government initiatives such as the One Public Sector estate scheme, it was vital councils understood the properties in their portfolio and regularly reviewed them, according to the report’s authors.

May 14, 2014

Spending on office furniture becomes a US political football

by Mark Eltringham • Comment, Furniture, Public Sector, Workplace design

We’ve mentioned this before but when it comes to riling those who see public sector spending as inherently wasteful, nothing gets their backs up quite so much as the buying of lightbulbs and office furniture. You can come up with your own theories on why that might be (and I hope you do), but it’s been proved yet again as Fox News and other right wing commentators and media in the US have risen up in moral indignation at the news that the Internal Revenue Service has spent $96.5 million on office furniture and refurbishment during the last five years of the Obama administration. Now of course, this is just the touchstone for griping about government spending in general and Barack Obama in particular, but the US is clearly not alone in having an issue with office furniture purchases and you have to wonder exactly why this is.

May 12, 2014

New NHS purchasing framework announces list of appointed firms

by Mark Eltringham • Architecture, News, Property, Public Sector

Details have been announced of the firms appointed to a new NHS purchasing framework designed to provide best value and improved service levels across a range of procured services including architecture, quantity surveying, health and safety, environmental management, project management, mechanical & electrical and building consultancy. The procurement division of NHS Shared Business Services (NHS SBS), claims to have redesigned the existing construction consultancy framework which was originally only open to architects and quantity surveyors, to cover a total of 11 different disciplines and covering 12 different regions. The new framework, which was first announced last month, will apply to all 600 NHS Trusts and their commissioning organisations as they procure consultancy services for new build and refurbishment works for buildings.

April 25, 2014

Innovative public sector property scheme to be extended

by Mark Eltringham • Facilities management, News, Property, Public Sector

One of the UK’s most innovative property strategies, the One Public Sector Estate programme is to be extended, the Government has announced. The initiative was established in June of last year in 12 pilot areas as a way for central and local government departments to share offices and other public sector property. The programme will now be extended to as many as 15 new authorities across the country with the Cabinet Office claiming that the pilot schemes have already saved around £21m in under a year and that the sale of property freed up by the scheme will raise an additional £88 million. The strategy is jointly managed by the property arm of the Cabinet Office who are responsible for similar initiatives in central government, and the Local Government Association.

April 14, 2014

UK to miss out on overseas public sector procurement growth, warns CBI

by Mark Eltringham • Facilities management, News, Property, Public Sector

Public procurement of goods and services in twelve key emerging markets will almost triple to £452 billion by 2030, according to new research from the Confederation of British Industry. But the report warns that UK will only capture £11 billion of this growth, if its current market share stays the same so the UK needs to do far more to capture a higher share of the extensive growth in global public procurement in emerging markets. The procurement of goods and services in key emerging markets will soar to £452bn by 2030 as public sector organisations in rapidly developing countries increase their procurement of goods and services, driven by the needs of aging populations and a growing middle class. China will lead the growth in public sector procurement with its market increasing by 7.4 percent each year. Indonesia and Turkey will also rapidly increase their spending by 6.2 percent and 6 percent respectively.

April 9, 2014

Local Government is lagging behind in its use of digital technology

by Mark Eltringham • News, Public Sector, Technology

A new report claims that the UK’s local authorities are not only lagging behind the rest of the world in their use of digital technology but in some areas their development has stalled completely, despite significant investment. The report, Smart People, Smart Places from the New Local Government Network claims that ‘whilst there is much good practice emerging, councils sometimes struggle to fully unlock the benefits of technologies that they do invest in [because] they are often uncomfortable, and risk averse.’ While it acknowledges that the problem does not apply to every council, with some showing exemplary thinking in certain areas, it also paints a general picture of organisations unable and unwilling to make the most of the technology in which they invest, lacking vision and leadership and intimidated by change.

March 24, 2014

Public sector purchasing doesn’t need this kind of lightbulb moment

by Mark Eltringham • Furniture, Products, Public Sector, Workplace design

The latest of the weekly kickings reserved for the UK’s public sector purchasing community comes in the shape of a BBC Panorama documentary alleging that a range of frauds and cock-ups cost the National Health Service around £7 billion a year. The NHS denies these figures but there are clearly obvious and serious deficiencies in the way goods and services are procured across the public sector, as we have reported. Yet there is a flipside to such reports which tap in to (and sometimes pander to) a widespread scepticism of the way the public sector goes about its business. So we must first ask whether an equivalent private sector organisation with a budget of £109 billion a year would not also be open to a wide range of eye-wateringly expensive failures, inefficiencies and frauds. And secondly we must question whether the great British public, along with some businesses, are generally able to grasp the issues involved.

March 12, 2014

£56m office development planned for Salford’s regeneration area

by Sara Bean • Company news, News, Property, Public Sector

Work is to start on a £56m Grade A office and car park development in Salford’s Greengate Embankment regeneration area. The joint venture partners behind the development are Carillion, Ask Real Estate and Tristan Capital Partners, with Carillion acting as the main contractor. Work on the site, which was part of the former Manchester Exchange railway station, will start in June, with delivery of the 172,640sq ft office and car park planned for spring 2016. Salford City Council has signed an eight-year pre-lease on the whole of the first office building and Q-Park has agreed a 35 year pre-lease for the 442 space car park. The site, which was acquired from Network Rail, also has planning permission for a second phase which comprises another Grade A office building providing 150,000 sq ft of space. More →

March 12, 2014

Interminable UK public sector procurement deters suppliers, claims report

by Mark Eltringham • Facilities management, News, Property, Public Sector

Last week’s story about the jaded view UK organisations have of the way public sector organisations buy goods and services provoked a great deal of discussion on LinkedIn. Now new research from specialist purchasing data analysts Spend Network has revealed that the UK government is the third slowest in the EU when it come3s to tendering. The UK government takes 53 days longer than the EU average, with only Greece and Ireland taking longer, and they’ve had their own particular economic problems to deal with over the last few years. The data is comprehensive, covering 1.8 million EU tenders over a period of five years. It found that it takes 172 days for the UK government to award a contract after the posting of an OJEU notice, at a cost to the economy of £22bn.