1. Title of the slide Second line of the slide Maximising the potential of college estates Presentation by Julian Gravatt Director of Funding & Development 24 May 2005

2. Title of the slide Second line of the slide A national asset? – 1,000 buildings accessible to anyone from 16 to 96 7 million square metres of space – the same space occupied by A3 space in England (Food & Drink premises) Land, buildings and equipment valued at £6 billion but costing much more if you had to rebuild it The college estate

3. Title of the slide Second line of the slide A college success story Rebuilding of the college estate – more than 50% of the sector has been modernised in the last decade Average project overspend 6% compared to average of 40% across the public sector Decisive action in the last ten years (1995-2005) to address twenty years of neglect (1975-95) A shining example of efficiency – space used has been cut by 25% while student numbers have grown

4. Title of the slide Second line of the slide What has driven improvement? Various “pull” factors Control of their own estate allowed governors and managers to think afresh Expansion of student numbers and availability of growth funding since 1999 Modernisation of facilities to keep ahead of curriculum, employer and student demand Availability of government capital grants 1993-6 and from 1999 onwards

5. Title of the slide Second line of the slide What has forced the pace? LSC/FEFC Accommodation Strategies have forced colleges to think about the issues Regulatory pressure to eliminate problem space (e.g. health and safety, disability discrimination) Ability to sell buildings/sites to raise cash Reduction of space use and building costs is often a key part of financial recovery plans or mergers Various “push” factors

6. Title of the slide Second line of the slide Spending trends College capital investment and LSC Capital grants (£ millions)

7. Title of the slide Second line of the slide Will the trend continue ? Students and employers value modern facilities Pressure to reduce costs Borrowing easier LSC capital funding increases up to 2010 Other calls on LSC capital funds (eg skills academies) Planning laws tougher College income static from 2005-6 onwards Future riskier

8. Title of the slide Second line of the slide What does your accommodation strategy say? Is it still relevant given the context in 2005? -public funding is limited and contestable -new vocational diplomas for 14-19 -workplace learning for adults Refer back to the strategy development process [LSC circular 02-20] The choices for your college

9. Title of the slide Second line of the slide The accommodation strategy LSC recommends a six stage process What is the college’s overall strategy? What are its current sites & buildings? What opportunities are available to it? What are the realistic options? Which is the best option? How will it be delivered?

10. Title of the slide Second line of the slide Implementation Finance and LSC Approval Design Project Planning Permissions Procurement

11. Title of the slide Second line of the slide Some advice “There is a danger that a strategy becomes nothing more than a justification for a particular solution. These circumstances often arise when a college allows insufficient time and input to complete its property strategy before proceeding to project proposals.” LSC circular 02/20

12. Title of the slide Second line of the slide A second view “ People don’t spend enough time planning. Spend 3 year’s planning and 6 months building” Kevin McCloud – Grand Designs

13. Title of the slide Second line of the slide Assessing options Financial - what is the net present value (NPV) of a project taking account of all relevant costs, receipts, future savings and future income Wider costs - is this the best use of scarce management time? Wider benefits - will the project have a positive impact on staff morale, student achievement and a college’s reputation

14. Title of the slide Second line of the slide Lessons from the last ten years New buildings attract more students and enthuse staff, but the process is not painless New buildings can cut running costs, but higher standards create new spending Projects always take longer than you expect ICT has the potential to make a difference, but only if planned in from the beginning

15. Title of the slide Second line of the slide Planning for the future Student and employer expectations raise the threshold of acceptable quality Anticipate impact of legislation (eg. building regulations, health&safety, disability discrimination) The financial pressure will only get harder – what is the payback or NPV from any proposed project? ICT facilitates mobile working and mobile learning – can you use this to reduce space and costs?

16. Title of the slide Second line of the slide Where to get more help Learn from other colleges / use AoC networks Take free advice (eg. governors) but handle with care Use professionals to fill gaps in knowledge