FURTHER EDUCATION COLLEGES TYPICAL COST MODELS OCTOBER 2007

FURTHER EDUCATION COLLEGESTYPICAL COSTMODELSOCTOBER 2007

Further Education Colleges CONTENTS Page No • User Guide 1-3 • Acknowledgements 4 • Executive Summary 5-8 • Adopted Criteria 9-10 • Assumed Programme Dates 11 • Procurement Strategy 12-13 • Typical New Build Cost Models / Specification- Model One 14-19 • Typical New Build Cost Models / Specification- Model Two 20-25 • Typical New Build Cost Models / Specification- Model Three 26-31 • Refurbishment Model 32-34 • VAT 35 • Inflation 36 • Location Identity 37-38 • Appendix A – Design and Quality Specification 39-47

Further Education Colleges USER GUIDE • The basis upon which the three cost models have been prepared offers an example of a range of costs which are appropriate to a typical new building type, each model being related to a specific geographical location recognising the LSC regions and is noted and described in terms of: • Gross internal floor area • Storey heights • General specification • Location • Procurement route • Sustainability standards • Model One - Relates to London and the South East • Model Two - Relates to the East and West Midlands, East and South West of England. • Model Three - Relates to Yorkshire, Humberside and the North East and • North West of England. 1

Further Education Colleges • The application of an AIP or AID submission to the appropriate model will be undertaken by a three stage process, namely: • Geographical location. • Identifying whether the scheme broadly relates to the areas, storey • heights and general specification of the model. • Questioning whether the proposed scheme has truly exceptional • abnormals which sit outside the scope of the model. • Guidance on such matters is provided hereafter. 2

Further Education Colleges The guidelines cannot be fully comprehensive and are not intended to provide a means of assessing every type of scheme. However they do offer a range of data which provide indicative cost levels for: • Substantial typical new build projects • Three model types each of which relate to an identified • geographical location • Refurbishment schemes reflecting a full, medium or • minimal scope of work 3

Further Education Colleges ACKNOWLEDGEMENTS This document has been prepared jointly by: Davis Langdon LLP Turner and Townsend LLP AYH plc AA Projects Limited Gardiner and Theobald with the guidance and editorial input of the Learning and Skills Council The publication date is October 2007 4

Further Education Colleges EXECUTIVE SUMMARY The purpose of the study has been to create three cost models which relate to typical new build college projects for which an adopted scope and specification has been identified and reflected within the data. It is recognised that a minority of projects will fall outside the model, creating either a lower or higher outturn cost, being driven by a number of factors, including use, specification and site specifics. 5

Further Education Colleges The style of the document is tailored to facilitate ease of use by the LSC assessment panel in considering applications at AIP and AID stages and is intended to allow submissions to be measured against an expectation, represented by the models, which reflect current market conditions and tender returns recently received and relating to a number of FE college submissions principally based upon a two stage design and build procurement route. Costs are also provided for typical refurbishment schemes, presented in summary form, and for which further work may be carried out if felt to be of benefit to the LSC, following a critical assessment. 6

Further Education Colleges The models assume that the current status of tendering, in terms of demand and supply, is maintained in the next two year short term, but with regular reviews taking place. The models will be subject to a six monthly mid term review and an annual detailed update. 7

Further Education Colleges • Costs are therefore provided for: • Typical new build schemes representing a majority of projects. • Three typical models represented by geographical location. • Typical refurbishment schemes, identified as being either of full, • medium or minimal standard. 8

Further Education Colleges ADOPTED CRITERIA Brief description of the concept of a typical College Location : Model One – London and South East Model Two – East and West Midlands and the East and South West of England Model Three – Yorkshire, Humberside and the North East and North West of England GIA : 15,000 - 25,000 sq m (measured inside face to inside face across all service voids and staircases including atria floor areas) Number of Storeys : 4 Greenfield/Brownfield: Prepared site New Build : Yes 9

Further Education Colleges Existing Campus Either Or Relocation: Procurement: Two stage, design and build Date at which stated Base date, September 2007 costs are valid: General Specification: New build, offering full range curriculum, 4 storeys high above ground, with up to 3 nr separate or linked buildings, with an envelope comprising a construction of part glazed, rainscreen cladding, brick / render elevations. NOTE: Detailed design guidelines are attached at Appendix A. Stated costs are Costs represent a second stagefinal and fixed Tendered figures, contractor tender, present day, at September not Final Account: 2007. Inflation during the programme period is considered separately. Atria are included in the total GIA and representing approximately 10% thereof. 10

Further Education Colleges ASSUMED PROGRAMME DATES: Feasibility: Start: November 2005 Complete: January 2006 AIP: Start: February 2006 Submit: July 2006 AID: Start: October 2006 Submit: June 2007 Start on Site: September 2007 Phasing: Two consecutive phases Completion on Site: August 2009 Pre Contract Period: 23 months Post Contract Period: 24 months 11

Further Education Colleges PROCUREMENT STRATEGY The model adopts a two stage design and build procurement strategy as the route for producing a firm price from a preferred contractor competitively selected and engaged at stage one. This represents the LSC’s recommended and expected approach to be embodied within AIP and AID submissions. However a project team will submit an alternative proposal where they feel that the interests of the College are better served thereby although any deviation from the two stage procurement route would require a supporting rationale and would only be expected to be received as a recommendation in limited circumstances, clearly underpinning such a consideration. The LSC’s view on procurement is the resultant of both internal and external consultations and the assembly of experiences of alternative strategies. The benefit of two stage tendering is believed to rest with careful contractor selection, a clear brief and the contractors full engagement with the selected consultant team. The LSC will regularly review the strategy on a year by year basis. 12

Further Education Colleges ABNORMALS INCORPORATED IN THE BASE BUILD MODEL • The base build cost models identify and incorporate a range of the more commonly encountered abnormals being, but not limited to: • Demolition • Adverse ground conditions including poor load bearing quality and or some minimal • contamination • Temporary works • Decanting • Planning conditions which may embrace section 106/278 conditions and landscaping. • The models assume only a modest expenditure on the above. • The abnormals referred to herein should represent no more than 5% of the total cost and will not be referred to as ‘abnormals’ following the Capital Committee’s adoption of this document on 11 October 2007. • Therefore items previously regarded and presented as abnormals are now embodied within the base build cost models herein and will no longer be referred to as ‘abnormals’. 13

Further Education Colleges TYPICAL NEW BUILD COST MODEL / SPECIFICATION MODEL ONE London and the South East of England 14

Further Education Colleges TYPICAL COLLEGE – MODEL ONE Base build costs embracing sustainability items relevant to a ‘very good’ BREEAM rating and items previously referred to as abnormals 15

Further Education Colleges 16

Further Education Colleges TYPICAL NEW BUILD COST MODEL / SPECIFICATION MODEL TWO East and West Midlands and the East and South West of England 20

Further Education Colleges TYPICAL COLLEGE – MODEL TWO Base build costs embracing sustainability items relevant to a ‘very good’ BREEAM rating and items previously referred to as abnormals 21

Further Education Colleges TYPICAL NEW BUILD COST MODEL / SPECIFICATION MODEL THREE Yorkshire, Humberside and the North East and North West of England 26

Further Education Colleges TYPICAL COLLEGE – MODEL THREE Base build costs embracing sustainability items relevant to a ‘very good’ BREEAM rating and items previously referred to as abnormals 27

Further Education Colleges REFURBISHMENT MODEL 32

Further Education Colleges RETAINED BUILDINGS LEVELS OF REFURBISHMENT STANDARDS FULL: Strip the building back to its primary frame, retain structural floors, provide a new envelope, resurface roof and fully fit out internally including M&E, IT and communication installations. Approximate cost guide: Model One: £2,300 m² Model Two: £2,116 m² Model Three: £2,024 m² MEDIUM: Retain the existing structural fabric and envelope of the building and introduce extensive new internal finishes and FF&E with part renewal of M&E, IT and communication installations. Approximate cost guide: Model One: £1,650 m² Model Two: £1,518 m² Model Three: £1,452 m² 33

Further Education Colleges MINIMAL: Retain the building in its present form, with limited elements only of new finishes internally including part FF&E. Approximate cost guide: Model One: £900 m² Model Two: £828 m² Model Three: £792 m² NOTE: Costs include fees and full VAT liability and are expressed at September 2007 values. 34

Further Education Colleges VAT The model assumes a full VAT liability of 17.5%, on all works including FF&E, although there are instances where the liability will be at a lesser level, dependant upon a number of factors relating to and including design, building linkages, use, the teaching age profile, together with the nuances of current VAT legislation. It is further assumed that AIP’s and AID’s will be submitted with a full VAT liability, noting a lesser liability if known at AIP or AID stage. 35

Further Education Colleges INFLATION Tender inflation sits outside the model but is referred to in terms of its impact upon a present day AIP or AID at September 2007. Inflation is progressively being measured, not only through the recognised published indices, but by actively, on a monthly basis, analysing tender returns and sharing that outcome with the LSC, the Colleges and the consultants engaged in FE commissions. Inflation presently is running at 6.25% per annum. 36

Further Education Colleges LOCATION IDENTITY 37

Further Education Colleges APPENDIX A DESIGN AND QUALITY SPECIFICATION 39

FURTHER EDUCATION COLLEGES TYPICAL COST MODELS OCTOBER 2007