1. 1 National Executive Forum on Public Property 6 th Annual Conference, Vancouver, 9-10 May 2003 Making PPPs work – the property profession’s role Louis Armstrong, RICS Chief Executive The mark of property professionalism worldwide

2. 2 RICS: representing a global profession 113,000 members 120 countries 50 organised groups, inc. 27 national associations 15,000 public sector members

3. 3 RICS Canada 3 chapters 40% of total RICS Americas membership Priority for development of the profession Energetic leadership RICS Awards: VITP on the shortlist

4. 4 Sustainability General concept better known Johannesburg 2002 – RICS Foundation conference Global Alliance for Building Sustainability 43 organisations: 1.2 million professionals Benchmarking sustainability Sustainability and P3s: whole life focus

5. 5 The UK experience Private Finance Initiative Political issues Education sector: 34 projects: 84 in procurement Total PFI funding credits (schools) to date of £5.3 billion Other sectors - 25 major hospital schemes - 7 prisons - 9 roads

6. 6 National Audit Office Report : PFI Construction Performance NAO’s hypothesis: PFI incentivises consortia: - accurate costing - on-time delivery - high quality design and construction NAO findings - price certainty: 22% of projects exceeded budget (73% pre-PFI) - procuring departments caused changes - contractors mainly bore extra costs

7. 7 Timing of Delivery 28 of 37 projects delivered on time or earlier Of 9 delayed, 6 late by <2 months Pre-PFI projects: 70% late PFI – more detailed specifications - cost and time targets set later

8. 8 Quality of design and construction Most project managers satisfied Formal user surveys in only 4 of 37 projects OGC/CABE report: any process can secure good design with client commitment to: - skills - budget - focus on whole life costs - integrated supply team with quality designer

9. 9 Design benefits Health (Nottingham University study) - lower pulse rates, mean arterial blood pressure - shortened post-operative stays - lower drug consumption Education (PWC study) - staff morale - pupil motivation - learning time

10. 10 Design benefits Recruitment and retention - work environment often a strong factor Value of professional advice for clients OGC/CABE recommendations - appoint a senior design champion - withhold public funding unless schemes are well enough designed - use PFI only where it offers best value, taking account of a realistic Public Sector Comparator reflecting commitment to design excellence - publish guidance on involving building users in procurement

11. 11 Conclusions UK central government PFI projects: marked improvement on traditional methods Project managers happy with the design quality, but should consult users more Design benefits: greater partnership commitment needed Sustainability inherent in P3s: whole life focus Professions should develop sustainability indicators

12. 12 Further information, including case studies Public Private Partnerships Programme: www.4ps.co.ukwww.4ps.co.uk National Audit Office: www.nao.gov.ukwww.nao.gov.uk Commission for Architecture and the Built Environment: www.cabe.org.uk Office of the Deputy Prime Minister: www.odpm.gov.ukwww.odpm.gov.uk RICS Foundation: www.rics-foundation.orgwww.rics-foundation.org