High Speed Rail Will UK finally climb aboard?
Also in this issue: Faithful+Gould evolves New York Energy Laws Emerging PPP markets Dubaiâ€™s Jumeirah Lakes Towers
Emerging PPP Markets Global interest and optimism
6 Jumeirah Lakes Towers Dubai’s mixed-use waterfront community
8 NHS Estates More questions than answers for restructured NHS’s property portfolio
Transforming Asset Management With new Industry Standards
High Speed Rail 12 Improving cost predictability
Faithful+Gould Evolves 14
Celebrating Richard Hall’s achievements. CEO Donald Lawson outlines his future plans
Greener, Greater Buildings Plan 16 August deadline for NYC’s Energy Benchmarking law (Local Law 84)
Embodied Carbon Addressing whole life carbon costs
Sewers Under Strain 20 New legislation transfers privately owned sewers to the water companies
Utilities Industries 22 Improving asset management with PAS55
Asian Beach Games, Oman 24 Games development transitions to mixed-use resort
26 Front cover image courtesy of Bombardier
PFI: Separating Myth from Reality Is the media criticism justified?
Welcome to this edition of Solutions, my first in the driving seat as Faithful+Gould’s CEO Worldwide Operations. Here we have a publication full of interesting items, representing much of the great work that Faithful+Gould is currently engaged upon. Richard Hall, our Worldwide CEO since 2005, retired last month after 38 years with the business. His contributions to our business are legendary and we owe much of our success to his leadership. The centre pages celebrate Richard’s achievements and give us the opportunity to wish him well. Faithful+Gould is very focused on furthering the carbon agenda, supporting clients in a variety of ways. Our survey of the global construction industry’s most senior leaders, described on page 18, suggests that the true carbon costs of buildings are still not properly addressed. In this article we look at the inclusion of embodied carbon impacts within whole life costing models, a practice being embraced by Faithful+Gould and soon to become part of the RICS New Rules of Measurement. I’ve further explored the sustainability theme on the centre pages, introducing our expanded group-wide sustainability and carbon management division. This team has been formed by joining together our existing carbon consultancy business with a number of our Group colleagues who have particular expertise in providing sustainability advice in our carboncritical world. Our enhanced team is especially well placed to help clients make better commercial, environmental and design decisions. Take a look and let us know how we can help your business.
Page 4 discusses PPP’s emerging markets. This year we have been proliferating our PPP knowledge base across the world, especially gaining traction in the UK, Europe and the Asia Pacific region. The PPP Emerging Markets Conference in Kuala Lumpur in March revealed real interest and appetite for PPP in much of Asia, including the Middle East. Faithful+Gould has been the trailblazer for many PPP projects in Singapore and we expect to build on this success in other areas. The Asian Beach Games, profiled on page 24, demonstrates relative market buoyancy in Oman, while Jumeirah Lakes Towers, on page 6, provides reassuring evidence of the UAE property market slowly moving ahead once more. High speed rail is our focus on page 12, where we consider the challenge of achieving cost predictability on the proposed UK high speed network. Inevitably there will be high sensitivity as to the proposed route and urgent questions about the cost of this publicly funded project. Thank you for your interest in Faithful+Gould and I hope you will enjoy reading Solutions. Please get in touch with us if you’d like to know more about any of our services or initiatives. Check out our website and do please consider signing up for our short online Constructive Expertise communications.
Donald Lawson CEO Worldwide Operations
emerging Markets Public-Private Partnerships (PPP) have suffered in the UK but are attracting optimism in new emerging markets. The challenge is to develop a PPP approach to reflect local markets and conditions – ‘localising’ is essential for future PPP projects.
The global financial crisis had a profound impact on the UK’s PFI/PPP markets. Illiquidity, initially within the banking sector and subsequently the bond markets, has been compounded by the contraction in risk appetite among investors, causing a number of projects to be reviewed, delayed or mothballed. However there is considerably more momentum elsewhere, in what are known as ’emerging PPP markets’. The March 2011 PPP in Emerging Markets Conference in Kuala Lumpur showed buoyant interest and a strong Asian focus.
Image: Singapore Sports Council
There are a range of economic, social and political motivations for developing PPPs including the sharing or apportionment of risk, the integration of specialist yet complementary skill sets, culminating in improved efficiency, as well as the provision of a recognised investment vehicle conducive to the attraction of private sector investment. Motivations vary from country to country and evolve over time to reflect changes in government policy or shifts in micro and macro-economic indicators. The types and form of infrastructural provision procured under PPP also varies, influenced by the level of understanding and sophistication in the use of partnership and concession-based procurement. International PPP markets are at very different stages in the maturity cycle, making cross-jurisdictional evaluation problematic and compounded by subtle differences in legislative frameworks and tendering processes.
and widest retractable roof. This project recently won Project Finance magazine’s Global PPP Deal of the Year 2010. Singapore’s PPP appetite has reduced during the global economic crisis and their focus is now on setting up investment vehicles to provide finance for other developing Asian countries pursuing PPP.
North America has been relatively active and particularly Canada. The Canadian market has seen a good spread of social and economic infrastructure, including hospitals, schools, judicial and office accommodation, and now has a greater focus on infrastructure and transportation. Canada has substantially adopted the UK model and although the market has slowed recently, Canadian PPP looks here to stay and, with its simpler structure, is a great benchmark for other emerging markets to emulate.
There is currently real interest and appetite for PPP in the Middle East. Faithful+Gould is currently working with local partners in Kuwait and the UAE to develop accommodation and transport-based PPP and BOT (Build Operate Transfer) projects. We are also exploring opportunities in Qatar, Saudi Arabia, Oman and Egypt.
In the US PPP has been used for many years but as a concession partnering agreement, which doesn’t include a whole life approach to hard and soft facilities management or an availability based payment mechanism model. However with last year’s Financial Close on California’s Long Beach Courthouse PPP, the US’s first accommodation PPP, Texas and Arizona have been keen to explore the UK or Canadian models.
Our experience suggests that successful PPP projects have clear objectives from the outset, with transparent evaluation criteria and processes defined at a very early stage. The emerging markets opportunity also brings a range of potential challenges, including political, economic and financial risks. There are also risks associated with the lack of managerial skills, inadequacy of institutions, corruption, lack of transparency, social issues and income inequalities in the local operating environments.
Faithful+Gould has been the trailblazer for all PPP projects in Singapore, tipped as the hub or gateway for future Asian PPP. We recently acted as funder’s Technical Adviser on the S$1.6billion Singapore Sports Hub PPP. This is the world’s first PPP-procured sports stadium, incorporating 55,000 seats and the world’s thinnest
Faithful+Gould’s global network provides PPP expertise and advice to a wide range of governments. We bring global best practice to localised delivery, offer problem solving for community and environmental benefit, and actively drive the carbon agenda.
For further information contact Campbell Gray on +44 (0) 131 221 5600 firstname.lastname@example.org or Martin Riddett (Singapore) on +65 6227 6144 email@example.com
LAKEs TOWERS The Dubai property market continues to suffer the effects of global financial crisis, with many developments on hold and banks still reluctant to lend. However construction sites are looking busier than last year, with stable construction costs and low interest rates providing an incentive to build now.
Among Dubai’s success stories is Jumeirah Lakes Towers (JLT), a high-density waterfront mastercommunity development of residential and office towers, alongside hotels, leisure and retail outlets. Spearheaded by government owned DMCCA, the development plans a total of 87 towers catering for an ultimate population of 120,000. The landmark 65-storey Almas Tower, situated in the centre of the community and surrounded by water, is the development’s focal point. Almas houses the Dubai Multi Commodities Centre (DMCC) and Dubai’s pearl and diamond exchanges. Seventy-eight towers are clustered in groups of three, situated around four artificial lakes and surrounded by landscaped gardens. Eight further towers will line the JLT Embankment areas, with over 50 different property developers taking on individual towers.
Although the later commercial developments are not able to attract full occupancy at present, earlier developments secured high occupancy. The residential towers are 80-90 per cent occupied in spite of the market downturn. The location, with its proximity to two metro stations and the Sheikh Zayed highway, combined with the development’s community vibe, has made JLT a desirable place to live. This has been a long-term project, started prerecession during huge demand for property development in Dubai. The period since has seen much economic turbulence. The master developer needed cost certainty while adapting to changing circumstances during times of spiralling inflation, followed by plunging construction costs and restricted cash-flows. The project’s timescale has of necessity changed, but the last eight months have seen the pace pick up again. Fifty-nine towers are now complete and a further 27 are expected to finish by 2014. Faithful+Gould was appointed to deliver project and cost management consultancy services for the infrastructure, the community common area construction and the construction of DMCC’s own three towers. Working closely with the client, the project team delivered a programme management plan and reporting structure tailored to JLT’s constantly changing site conditions and specific design requirements.
A small dedicated logistics team from Faithful+Gould was deployed by the client to manage and co-ordinate construction activities. Challenges have included the logistics of co-ordinating the activities of the 86 subdevelopers with up to 50 independent contractors, their equipment (up to 15,000 vehicle movements daily), materials and workers (80,000 at peak) all on a very constrained site – Jumeirah Lakes Towers occupies just under two square kilometres of land. As development progressed and some towers became occupied, co-ordination became more complex on the congested construction site. The story of Jumeirah Lakes Towers reflects the wider market for high-end quality real estate in Dubai. Current market conditions are unable to support the levels of completion previously seen in the emirate, but the market is nonetheless encouraged to see progress on some previously stalled developments. There are also indications of a new way of doing business. More prudence overall, including tighter financial control, is a sign of the times and is generally agreed to be a welcome and necessary step towards a leaner and fitter property market. Our Middle East operation is headquartered in Dubai, with offices in Abu Dhabi, Qatar, Oman and Saudi Arabia. We are active in all sectors and our UAE workload currently includes Etihad Railway, Najmat on Reem Island, GASCO Habshan 5 gas processing plant, Al Ain’s Wildlife Park and Resort and Khalifa Port Industrial Zone.
For further information contact Martin Hunt on +971 (0)4 405 9100 firstname.lastname@example.org
More questions than answers The NHS’s recent primary care focus has highlighted GP commissioning and the resulting structural, financial and cultural changes. But where does this leave the NHS property portfolio? What will the planned changes resulting from the Health Bill mean for the primary care estate? Primary care trusts (PCTs) own community hospitals, clinics, some walk-in centres and some GP surgeries. The dissolution of PCTs and strategic health authorities (SHAs) in 2013 means that the ownership of an estimated £6billion of property is undecided. When PCTs were established from 2000, they inherited sizeable estates. Some are leased, but many are in the ownership of PCTs. From 2004 the resources and leadership for deciding upon new primary care investment passed to PCTs.
Who might these successors be? The main message from the Department of Health (DH) is that operational issues concerning primary care estates, such as property aspects, should be handled at a local level. This is in line with current decentralist coalition philosophies. Some regions have clear plans to move to GP-led commissioning based on a single consortium. Others have less developed plans, and possibly conflicting views about the best future configuration. Moves have begun to form 52 groups of GP practices – ‘pathfinders’ – to start testing the new commissioning arrangements before more formal arrangements come on board.
The land and buildings which form the estate are therefore one of the biggest capital assets of any PCT. The government’s 2010 White Paper 1 proposes radical restructuring of the NHS and aims to transform how
National policy in recent years has been to support plans for progressive separation off of so-called ‘provider arms’ of PCTs. The NHS strategy for separation of PCT provider and commissioning
1 & 3: Greater Nottingham and Nottinghamshire LIFTCos
health care is commissioned, with around £80billion being transferred to new GP consortia. However it makes no specific mention of the estate. Nor does it suggest any plan of action to deal with the task of transferring healthcare buildings from the PCTs to their premises’ successors.
arms has been in place for some time – mainly via the Transforming Community Services initiative. But very little information has been made available about associated premises-related issues Commissioning in the NHS is a complex activity and Britain’s 40,000 family doctors will have a tough task ahead. The Royal College of General Practitioners (RCGP) has highlighted 2 that many GPs currently lack time, skills and capacity for commissioning. Public service union Unison additionally points out that there may be a tension between GPs’ roles as providers and purchasers of healthcare. The sternest critics called for the government to abandon the plan to force GPs to take over all commissioning by April 2013, because some will simply not be ready. Others want PCTs to continue in some form to minimise disruption to services or loss of skilled staff. PCTs have been told to cut their management costs by over 45 per cent, signalling huge redundancies on the commissioning side. This is already impacting on the viability of PCTs to manage the transition period. As we go to press, there have been further developments. In April 2011 the Prime Minister indicated the need to slow down and amend the legislation in something of an about-turn for the coalition government. There is now a pause in the progress of the Health and Social Care Bill through Parliament, to allow for more time to reassure clinicians, patients and coalition MPs. An uncertain
and fragmented picture looks likely until the decisionmaking is completed and the new organisational framework for the NHS becomes fully embedded. Developing the balance between patient care, service delivery, clinical control and value for money will be complex. The commissioners face challenges in dealing with ‘Any Willing Providers’, the potential input of the private sector, and the new registration and compliance procedures (regulated by the CQC 3). They will also have to develop non-core business management skills previously provided by other organisations. In addition to delivering their core services, consortia will have responsibility for maintaining statutory compliant estates and premises, and efficiently managing non-medical issues. They will have to work not only as a new business but also as part of consortia, rather than as individuals. Faithful+Gould has 50 years of health sector experience, spanning all aspects of capital development, facilities management, strategic investment planning and environmental support. Our expertise encompasses all procurement models employed in the healthcare environment. In meeting the sector’s latest estates challenges, we envisage supporting existing and new client bodies with exploratory, preparatory and operational aspects of meeting their new responsibilities. 1
Equity & Excellence: Liberating the NHS, Department of Health, July 2010
Care Quality Commission, the health and social care regulator for England
For further information contact Russell Burns on +44 (0)115 957 4800 email@example.com
With new Industry Standards In these austere times, estate holders are urgently seeking to significantly reduce the combined operating costs and capital asset investment costs, by efficiently managing the total cost of ownership and maximising the utilisation and value of all their assets. For decades the UK construction industry has used the RICS standard methods of measurement for managing capital costs. However the maintenance industry has not had industry-accepted methodologies for managing and optimising the actual costs of maintaining and life cycle replacement of built assets. This is now set to change with a formal set of practical guidelines and rules of measurement for maintenance works. Andy Green, Faithful+Gouldâ€™s director of Whole Life Costing, chairs the RICS technical working group producing the New Rules of Measurement (NRM 3) for maintenance works. He is the lead technical author
for NRM 3 and also for the forthcoming BS 8544 Guide for Life Cycle Costing of Maintenance. Both standards are scheduled for publication in Q4 2011. Faithful+Gould is already applying the new standards, in advance of publication. This transforms the way in which clients can optimise expenditure on maintaining their assets. The standard provides a consistent basis for targeting spend and a robust basis for cost control, transparency and informed decision-making. We aim to support clients in formulating a sustainable estate strategy for their built environment, by facilitating their control of the total costs of constructing, maintaining and life cycle asset replacement works. The new rules also provide a standardised basis for future asset surveying and for various forms of assessment, such as condition, energy efficiency and functional usage. Our data collection technology enables us to Accurately, Consistently and Efficiently (ACE solution) carry out an asset condition/maintenance survey and a capital investment survey simultaneously. The survey is aligned to the new UK standards. From asset survey outputs we can generate integrated maintenance and life cycle replacement programmes. We can also quantify maintenance liabilities and operational risks, for informing and optimising maintenance expenditure versus available funding. This uniquely enables clients to set and defend their maintenance budgets.
They can also sustainably invest or de-invest in their assets, including instigating upgrade works to realise carbon reduction and energy efficiency targets. All estate holders stand to benefit from the new maintenance costing methodologies. The public sector has already made a start. The Ministry of Justice (MOJ) has championed the standardised methodologies and employed Faithful+Gould to help them roll out a national asset verification and condition survey across the MOJ custodial estate. This covers 134 establishments, totalling over 7000 buildings and some six million maintainable assets.
By embracing the new standards, Faithful+Gould can help clients transform the way in which they manage and optimise the life cycle asset management of their built estate. In summary, the key benefits of adopting the new standards and costing methodologies are: Functional Minimum Maintenance Standards Assurance of statutory/legal compliance – fit for function maintenance regime. Robust base line for each functional type – e.g. prison, barrack, school etc. Basis for setting appropriate funding for maintenance – e.g. cost/pupil etc.
Faithful+Gould also facilitated defining the ‘Functional Minimum Maintenance standards’ for MOJ custodial estate. We ran collaborative workshops with MOJ’s regional and site maintenance teams, with technical inputs and use of industry standards provided by the Heating & Ventilation Contractors’ Association (HVCA).
Understanding the impact of funding or not funding maintenance Targeted investment based on quantified risks and operational liabilities. Informs decision-making – using facility condition indexing and risk techniques.
Adopting maintenance standards and the use of Functional Minimum Maintenance has caught the interest of other public sector clients, such as Defence Estates and the Government Property Unit. As the UK’s largest landowner and largest tenant, the government requires swift efficiency improvements in its highly diverse estate. The Government Property Unit (GPU), which currently leads property strategy across the public sector, is actively encouraging standardisation across the Facilities Management and maintenance industry.
Control of the combined maintenance and capital replacement expenditure Prioritise and optimise actual spend versus business needs/wants and liabilities. Inform investment decision-making and wider estate rationalisation planning. Sustainable and scalable model – customisable for any client organisation Supports the use of leaner and greener best practices and targeted improvements.
For further information contact Andy Green on +44(0)20 7121 2121 firstname.lastname@example.org
Improving Cost Predictability The government has launched its consultation on the proposed high speed rail line from London to Birmingham. The government considers that a new high speed rail (HSR) network would transform the UKâ€™s economic geography, providing a genuine alternative to domestic aviation. This would slash journey times between cities, deliver a huge increase in rail capacity to meet rising demand for long-distance rail travel, and ease overcrowding on existing railways.
A Y-shaped national HSR network is proposed. This links London to Birmingham, Manchester and Leeds, and includes stops in the East Midlands and South Yorkshire, as well as direct links to the HS1 line. Phase two covers the onward legs to Manchester and Leeds. Construction costs are estimated at ÂŁ32billion. The development of major HSR proposals is not restricted to the UK. In the US, the President is proposing to invest $53billion over the next six years to continue construction of a national high speed and intercity passenger rail network. The Department of Transportation also has existing work with several states
The AVE on the Jalon Viaduct between Madrid and Barcelona, Spain Image: Spanish Rail (featured in Greengauge 21â€™s Fast Forward report)
to plan and develop high speed and intercity passenger rail corridors. These range from upgrades of existing services to entirely new rail lines exclusively devoted to 150 to 220 mph trains. In California, cost estimates are in excess of $45billion for the California HSR. Transport projects are typically subject to uncertainties due to long planning, design, implementation and operational timescales, which often involve complex internal and external interfaces. Over the project development and implementation phases, the project scope will often change, leading to a degree of uncertainty in both budget and schedule. Rail is no exception. Optimism bias tends to be high, with most rail projects out-turning at a 40-50 per cent higher cost than anticipated. Schemes usually take longer than planned and do not always deliver the anticipated benefits. When benchmarked against other countries, UK railways construction costs are often found to be significantly higher. Sir Roy McNulty’s value for money review is currently underway with his findings soon to be published, but the question frequently asked is ‘does HSR have an average cost per kilometre?’ The validity of like for like comparisons must of necessity be questioned because of variability in unit rates for HSR projects. This is due to issues such as: Consistency of pricing (currency and date) Project timescales and phasing Location of project and local variations Whether all life cycle costs are included Establishment of the corridor (urban, suburban, wilderness) Route alignment Local labour rates New build or upgrade of existing facility Traffic type (passenger/mixed traffic/frequency/ rolling stock)
What can be done to improve the cost predictability of rail schemes? We suggest that the most successful schemes will explore a range of issues, and implement various tools and techniques. It’s especially vital that sufficient exploratory work is done during the project’s pre-construction phase, to ensure a robust proposition. Particular attention should be paid to the commercial aspects of the scheme, including the estimation of capital costs, life cycle costs and the identification and management of risk. Scheme costs can be greatly reduced by considering the following: Make use of an experienced project management team. Aim for standardisation (stations, structures, rolling stock), as bespoke design solutions increase costs and can take longer to implement. Consider the relationship between capital and life cycle costs and the potential trade-offs. Keep procurement strategy as simple as possible Limit breaks in programme, i.e. reduce the number of phases, as stopping and starting a project can significantly increase the costs. Faithful+Gould has unprecedented knowledge and expertise within the rail industry, reinforced by strong links with our parent company Atkins, the largest consultant engineer in the UK rail sector. We have been involved with several future high speed schemes at exploratory proposal level, as well as our practical UK experience as project and cost managers for the HS1 fit-out at St Pancras and at Ebbsfleet International, and the feasibility stage for HS2. In the process we have built up comprehensive cost modelling expertise. Our global rail experience elsewhere includes projects and clients such as Kuwait Metro Feasibility Study, Norwegian High Speed Rail Study, Metro West (Ireland), Manchester Metrolink, Glasgow Airport Rail Link, London Crossrail, Ultraspeed, Docklands Light Railway (various), Dubai Metro, Union Railways (UAE) and the Wien to Kosice Freight Upgrade Study.
For further information contact Graeme Bampton on +44 (0)141 220 2157 email@example.com
Retiring after 38 years at Faithful+Gould, Richard Hall looks back on the growth of a global business. I feel immensely privileged to look back on my career with Faithful+Gould. Thirty-eight years ago I joined a small parochial quantity surveying practice in the north east of England. Today I’m leaving a global business, a serious player, active in every sector and respected by clients and peers alike. That growth and diversification is what I’m most proud of. It’s not solely my achievement by any stretch of the imagination. It’s been a team effort all the way along. I’ve been fortunate to surround myself with excellent people, we’ve weathered good times and bad, and we’ve reaped what we’ve sown. When I joined Faithful+Gould in 1973, we had a predominantly industrial base, very different to the property clientele of most of our competitors at the time. That specialism served us well, became the foundation for our earliest global expansion and remains a significant strength today. We’ve gone on to diversify into many markets, products and services, always maintaining our position as a leading player in the industrial sector. I’ve also served on our parent company Atkins’ Executive Board for 15 years, giving me another opportunity to contribute. Watching the wider business grow from its flotation, only weeks after acquiring Faithful+Gould, to becoming an 18,000-strong company, the UK’s largest engineering consultancy, has been an exciting experience. At the same time I’ve been proud to ensure the retention of Faithful+Gould’s very special identity within the wider talent of the Atkins Group.
Relocating to the US has been an unexpected and exciting way to spend the last five years of my career. Carol and I have loved living here and I’ve valued the opportunity to contribute to the growth of our US business. Faithful+Gould has put independent cost management squarely on the map here and I know from client feedback that we’re meeting an absolutely critical need. The challenge is to develop that further and grow the American business even more and I know our team is well-placed to do just that. I know I’m leaving the business in safe hands. Our long-term succession planning has resulted in Donald Lawson’s exceptionally capable leadership, backed by a talented senior management team. I’ve worked closely with Donald for 25 years and I know he’ll take the business forward in new and exciting directions. Donald will be chairing the International Steering Group, where he’ll continue to have the support of the worldwide management team. I confess I’m looking forward to spending a lot more time with my family. Carol and I are expecting a second grandchild so there’s lots of fun and happy times ahead. I’m going to spend more time fishing and golfing, and plan to continue living the American dream right here in Florida! I know I’ll miss the business, and will always be curious and wondering about all those opportunities out there as we emerge from recession. It’s a strange feeling to reach retirement and still be anticipating what lies ahead for our business, knowing that I won’t be involved! But I’m confident that further great things lie ahead for Faithful+Gould. It’s been an honour to work with my wonderful team and valued clients over so many years – I thank you all for your loyalty and support and I wish you continued success.
Donald Lawson, Faithful+Gould’s new CEO Worldwide Operations, outlines some of his plans for our future. I’ve worked closely with Richard Hall for 25 years and I’ve had the opportunity to learn much from him during that time. I know I speak for everyone at Faithful+Gould in acknowledging his inspired leadership and his commitment to our business success. We all wish him well in his retirement. Richard has always been a force for change within our business, tirelessly driving us forward into new markets and new areas of expertise. His example will certainly underpin my own plans for taking the business forward as a leading international provider of commercial, project management and cost management services. I’m fortunate to have had a very varied and rewarding experience at Faithful+Gould since joining our Edinburgh office in 1986. I’ve been responsible for gas mains replacement, commercially managed corrosion protection on off-shore oil installations, ran £2million fit-outs of government buildings and delivered a retail programme for a number of high street banks. Inevitably I spend much of my time in London but endeavour to visit offices throughout the UK, US, Asia Pacific and the Middle East. An early priority is to spend more time in the US, where I look forward to building a fruitful relationship with our 3500 Atkins colleagues who have joined from the Group’s major acquisition of PBSJ in Tampa. This will enable us to further grow our US market, adding strength in environmental, transportation and programme management disciplines. Globally I want to ensure that we attract and retain the best people, with an emphasis on our professional learning and development opportunities. Investment in our graduates ensures the best quality leaders, business managers and technical experts for our
business, and I’d like to highlight the support we offer individuals to achieve professional chartered status via the appropriate institutions. A current initiative is our new sustainability and carbon management division, which comes under my personal sponsorship within the wider Atkins Group. Formed by the merger of Atkins’ sustainability team and Faithful+Gould’s well established carbon consultancy business, this expanded service operates under the Faithful+Gould brand and creates a new centre of excellence to help clients address all their environmental needs. Throughout my career I’ve been passionate about technology and the benefits it brings to the management of built environment projects. I’ve been able to drive this agenda at Faithful+Gould, allowing us to fully explore and utilise a growing range of tools and processes to support our service offering and meet our clients’ needs. Staying close to clients is one of my maxims and I hold longstanding client relationships in high regard. My own relationship with clients in the finance sector will remain a key part of my working life. As Richard hands over the reins, I’ll be continuing with my own hands-on style of management. I’m enormously excited about the future for Faithful+Gould and I look forward to sharing it with our valued client base and our talented management team.
NYC’s Local Law 84
Buildings Plan New York City’s especially dense urban environment contributes to its carbon footprint, so it’s fitting that one of the nation’s most comprehensive set of energy efficiency laws has been mandated here. The new legislation places NYC at the forefront of municipal efforts to improve energy efficiency in existing buildings.
NYC’s building energy efficiency programme, the Greener, Greater Buildings Plan, is part of the broader PlaNYC 2030, the city’s sustainable development plan, and a major part of the effort to meet NYC’s greenhouse-gas reduction target of 30 per cent by 2030. In December 2009, Mayor Bloomberg signed the four legislative components of the Greener, Greater Buildings Plan, providing a comprehensive set of efficiency laws. The fours laws address the critical area of energy use in existing private and public sector buildings. Local Laws 85, 86 and 87 focus on the NYC Energy Code, energy audits and retro-commissioning, and lighting upgrades and sub-metering. Local Law 84, the Energy Benchmarking law, is the one that everybody’s talking about right now. It aims to improve the energy (electricity, natural gas, fuel oil, steam) and water efficiency of New York City’s largest existing buildings. All eligible property owners 1 must comply with Local Law 84’s requirement to report on (benchmark) the annual energy and water use of their buildings through an online tool 2 called Portfolio Manager, which is maintained by the US Environmental Protection Agency (EPA). Once the initial data is in Portfolio Manager, the tool allows you to streamline a building or property portfolio’s energy and water data, tracking key consumption areas, performance and cost information. The Mayor’s Office of Long Term Planning and Sustainability will publish the data online so buildings can compare their energy use with themselves over time and with other buildings of similar size and type. The new legislation applies to residential and commercial buildings larger than 50,000 gross square feet, two or more buildings on the same tax lot totalling more than 100,000 gross square feet, or two or more buildings held in condominium ownership and governed by the same Board of Directors, totalling more than 100,000 gross square feet. For the vast majority of owners, this is totally new. The original plans stated that data should have been filed by May 1, 2011. However in view of the large numbers – over 20,000 – of properties affected, the Mayor’s office has notified a grace period of three months while owners acclimatise to the new requirements. But from August 1, no further extensions
can be expected. The state has announced an initial $500 fine for properties that fail to file and additional fines of $500 per quarter for further violations. The responsibility falls to the owner, managing body or commercial tenant and may seem daunting at first sight. On the upside, Local Law 84 creates an opportunity to adopt a proactive approach to improving a building’s energy efficiency. As energy costs continue to rise annually, it makes good financial sense to focus on energy efficiency measures. Benchmarking allows owners to get an accurate picture of energy and water consumption, to compare these controllable operating expenses with similar buildings and to plan for better future performance. With superior energy performance, a building could achieve an Energy Star rating. The visibility of the published data will benefit the real estate market in the future, allowing prospective buyers and tenants, banks and other financial institutions, as well as existing owners, to identify a building’s efficiency and the associated cost implications. The rating also contributes to the overall picture of a building’s financial health and quality of management. As carbon and cost savings become evident within the inspiring NYC model, we may see other states and municipalities adopting local benchmarking laws to improve their built environment. Analysis and evaluation of energy and water consumption is always a prudent step for any owner, irrespective of legislative requirements. Significant financial benefits can be achieved from relatively easy, low-cost changes, such as retro-fitting light fixtures, installing insulation or recalibrating major mechanical/energy consuming components. Faithful+Gould has global experience of cost-effective sustainability in the built environment. Our benchmarking expertise can assist all clients nationwide and in NYC specifically we can act as benchmarking administrator, inputting data on clients’ behalf and electronically submitting all results to the City. We are also strongly positioned to help clients in all locations, to audit and improve their overall energy usage. 1
T o determine if your property is required to meet the guidelines of Local Law 84, go to www.nyc.gov/ggbp or www.urbangreencouncil.org/resources/benchmarking The tool can be accessed at www.energystar.gov/istar/pmpam
For further information contact Paul Alders on +1 212-252-7070 firstname.lastname@example.org
Embodied Carbon Faithful+Gould’s survey of the global construction industry’s most senior leaders suggests that the true carbon costs of buildings are still not properly addressed. Whole life cycle costing is an established decisionmaking tool in the design and construction process, but the inclusion of carbon impacts, with their costs quantified and included in the life cycle model, is a newer approach. Faithful+Gould has been providing sustainability and whole life costing advice for a number of years now, and we believe that an agreed system for measuring and costing carbon through the life cycle will produce consistent results. In a construction/refurbishment project, carbon is emitted during five main stages: 1. The fabrication of the construction elements that make up a building (steel beams, concrete, glass, etc). Often termed ‘cradle to gate’ – embodied carbon emissions. 2. Distribution emissions, from factory gate to site. 3. Emissions from the construction process (on-site generators, site preparation, equipment etc).
4. Emissions from operating the building (heating, lighting, cooling, computers and commuting). 5. End of life: emissions that occur when demolishing or refurbishing the building. Carbon reduction strategies are therefore now looking towards the impact of embodied carbon of construction. This is a major element of overall carbon performance, with construction carbon in some cases equalling the predicted energy consumption of a building over a thirty year life. In the UK and in some other parts of the world there has been significant attention paid to the carbon question. The UK government chief construction adviser Paul Morrell now suggests that all projects have whole life carbon assessments. To assess the market appetite, Faithful+Gould recently surveyed 166 leaders in the property and construction sectors from the UK, US,
1530% fabrication embodied carbon (cradle to gate) 18
Middle East and Asia Pacific regions. Fifty-three per cent responded that the main reason embodied carbon was not counted was that it currently had no commercial value. This ties in with other Faithful+Gould research which shows that there is no fiscal or regulatory driver to address the embodied carbon problem. Conversely, operational energy reduction was prioritised because it brought visible cost savings, contributed towards a building’s ‘green’ credentials and is targeted by the Building Regulations and carbon taxation. The vast majority of UK-based respondents thought an easy way to address this locally should be to allow embodied carbon mitigation to count towards a project’s onsite renewable energy requirements, as in the ‘Merton Rule’. Nearly 80 per cent of those surveyed believed that embodied carbon was routinely ignored because reducing it was not regarded as important, costeffective or resulting in cost savings. Yet embedded carbon makes up an average of 15-30 per cent of a new development’s true cost to the environment. Unsurprisingly our research indicates that the industry appears more focused on operational emissions as they are easier to measure and they have a direct link to a building’s running costs. However some clients are starting to ask us to carry out embodied carbon assessments as part of our cost planning service. This is very encouraging but we would like to see the embodied carbon element become a mandatory rather than voluntary part of the process. Managing the embodied carbon budget is a specialist area, but one which fits well with the quantity surveyor’s role as they are close to the costs, specifications and quantities of materials. The research exercise reinforced our conviction that embodied carbon mitigation should be counted in the
assembly on site
assessment of a structure’s overall environmental performance. This would give immediate carbon reductions on a scale that would take many years to achieve through operational savings alone. Part L of the Building Regulations focuses on the energy consumed by operating, rather than constructing, assets. However there is no regulation of embodied energy/carbon in UK construction and no single agreed standard method for assessing the embodied energy of a construction material or product. The RICS New Rules of Measurement will address carbon accountancy and there will be supplements on how to address carbon, energy, waste and water (see also article on page 10). The guidance will enable a more consistent approach to quantifying construction materials. This in turn will contribute to more accurate estimates of embodied carbon obtained on different projects by different companies. The RICS has also recently commissioned Faithful+Gould to lead an embodied carbon task group to address these issues. The task group’s report at the end of 2011 will include an embodied carbon methodology. Sean Lockie, Faithful+Gould‘s head of sustainability, has been asked to author the guidance. The embodied carbon research was conducted to launch our expanded group-wide sustainability and carbon management division. The division was formed by the merger of our parent company Atkins’ carbon management team and Faithful+Gould’s own wellestablished carbon consultancy business. The expanded service operates under the Faithful+Gould brand, provides a greater depth and breadth of skills and creates a new centre of excellence to help clients make better commercial, environmental and design decisions.
5070% in use
For further information contact Sean Lockie on +44 (0)207 121 3002 email@example.com
under strain New legislation is paving the way for Englandâ€™s 200,000 kilometres of privately owned sewers to be transferred to water and sewerage companies. The water and sewerage industry has come a long way since privatisation in 1989 â€“ with around ÂŁ70billion of capital investment by 2010, better standards of service, increased environmental and drinking water compliance, and greater efficiency. However the sewerage element has suffered from a lack of integrated management of the network as a whole. Existing private sewers and lateral drains (the part of the drain that extends beyond the property boundary) are currently the responsibility of the owners of the properties they serve. This fact typically comes as a surprise to owners, who often assume that the sewer and lateral drain serving their property are the responsibility of the local sewerage company or local authority.
Having a much greater proportion of the sewer network in the management of the water and sewerage companies is intended to alleviate a range of private sewer and lateral drain problems faced by householders. Following a series of consultations under the Labour government, the coalition government has upheld plans to transfer ownership of private drains and sewers from private individuals to water and sewerage companies (WaSCs) from 1st October 2011. The expectation is that WaSCs will be able to operate the entire network more cost effectively, planning maintenance and resolving problems more easily and comprehensively. Environmental stewardship is also expected to be improved in the hands of the WaSCs.
Example of existing sewer arrangements
Example of future sewer arrangements
Key Private sewer, responsibility of home owner
Private drain, responsibility of home owner
Lateral drain is the part of a drain serving a single property, that lies on third party land and is the responsibility of WaSCs
Public sewer, responsibility of WaSCs Direction of flow
From a consumer perspective, the transfer will provide greater clarity on ownership and responsibilities, resulting in fewer disputes. The downside is that someone must fund the necessary future improvement and maintenance. Water industry regulator Ofwat has said that an increase in bills for customers is inevitable and they estimate increases of between £3 and £14 per annum. There have been suggestions that lower home insurance premiums may offset some of this sum, but it’s unclear if this will actually happen.
the extent and the condition of private sewers. In many cases the industry is inheriting some degree of historic neglect on the part of consumers. This adds to an already stretched responsibility: sewerage is generally considered the least invested-in aspect of the utilities. Uncertainty over what exactly their new assets constitute will make it difficult for some WaSCs to calculate required levels of funding in future price determinations. Mapping, surveying and assessing the network is likely to be a priority.
For the water industry, this means significant changes in responsibilities and WaSCs are currently exploring the approaches to managing the new assets. As well as operational issues around meeting anticipated demand for maintenance and repair, companies are also striving to understand the likely expenditure implications. The interface between WaSCs and local authorities has also been important in this respect. In most areas there is considerable uncertainty over
Faithful+Gould has more than 20 years’ experience in the water sector, including commissions for the principal UK water and sewage companies, and Scottish Water. We support a wide range of capital investment programmes across the sector and provide strategic input at both business and project levels. We anticipate increasing demand within our water industry portfolio for support with sewer transfer challenges.
For further information contact Lee Goult on +44 (0)1642 675136 firstname.lastname@example.org
Utilities Industries Improving Asset Management Stakeholders and regulatory bodies expect to see clear accountability in the management of the utilities sectorâ€™s capital assets. PAS55 is the industry standard approach to achieving asset management best practice.
Optimal asset management is a key aspect of good business management. Judicious planning, implementation and performance management of assets over their lifecycle will help an organisation achieve its corporate objectives. PAS55 is increasingly playing an important role in achieving this in the utilities sector, underpinning the way in which the organisation constructs, operates, maintains and finally retires its assets. PAS55 is a Publicly Available Specification (PAS) published by the BSI British Standards and was developed in response to industry demand for an asset management standard. The Standardâ€™s history began in 2002, when a consortium of large organisations, including utility providers and regulators, aimed to provide some clarity on the tools and techniques involved in asset management. They worked with
the Institute of Asset Management (IAM) and BSI to develop the first publicly available specification for the optimised management of physical assets, published in 2004 and revised in 2008. PAS55 is now internationally recognised and is becoming a regulatory requirement in a growing number of industries. The electricity and gas utility sectors are using PAS55 to demonstrate their competence and OFGEM (Office of the Gas and Electricity Markets) requires its network companies to undertake certification. The Standard is also gaining support in the water sector. Compliance with PAS55 is a way to ensure that all stakeholders’ needs are addressed. It facilitates an optimal mixture of capital investments, operations, maintenance, resourcing, risks, performance, sustainability and good governance, allowing companies to demonstrate these robust systems. Benefits include: Improved health, safety and environmental performance. Optimised Return on Investment through efficient asset stewardship. Demonstrable value for money, particularly within tight budgets. Evidence of controlled and systematic processes to demonstrate legal, regulatory and statutory compliance. Clear audit trail through risk management and corporate governance. Ability to demonstrate that sustainability has been considered. Stiff challenges can face those companies seeking certification. For instance, some businesses don’t have an asset management policy before starting on the PAS55 route and often there are gaps between the existing policies, procedures and processes and the PAS55 compliance requirements. Communication and awareness are important elements in the preparation for the PAS55 certification process. All those engaged by the organisation should ideally be made aware of the links to the strategic plan
and business objectives. Contractors and other stakeholders should also be involved in preparation, not just employees. The certification audit is a short process, typically less than a week. The organisation has to demonstrate to an external audit company, usually UKAS 1 accredited, compliance across a range of business activities. This involves everybody from senior management to site operatives, and includes some suppliers and contractors. Working through policy and procedure documents, the organisation has to demonstrate site operatives’ knowledge and compliance, satisfying questions such as: How do they know what they have to comply with? How do they know they have the latest version of documents? What are the consequences if they fail to comply? Do all operatives have the requisite skills, knowledge and competence? PAS55 is also successfully used in public services and property, transport, manufacturing, mining, oil and gas, defence, pharmaceutical, process and heavy engineering. There are benefits for any organisation where physical assets are vital for achieving business objectives and effective service delivery. Faithful+Gould has an established track record in all utility sectors and we can now help clients achieve PAS55 certification compliance. Client requirements will vary, but may begin with written and verbal briefings to all staff, continuing on an ongoing basis throughout the preparation period. A series of workshops across the business, including third party organisations, will identify policies, processes, systems and procedures, highlighting any gaps. A gap action plan can then be developed, together with mock audits. We can also help with appointing the audit organisation, preparing signposting and identifying evidence to guide the auditor during the audit. 1
United Kingdom Accreditation Service
For further information contact Tony Brown on +44(0)1642 675136 email@example.com
Beach Games December 2010 saw Oman play host to the second Asian Beach Games, a multi-sport event regulated by the Olympic Council of Asia.
The 2010 Asian Beach Games showcased a diverse range of sports: beach soccer, beach handball, beach kabaddi, beach sepaktakraw, beach volleyball, beach waterpolo, beach woodball, bodybuilding, jet-skiing, marathon swimming, sailing, tent pegging, triathlon, and waterskiing. The Games has reinforced Omanâ€™s recognition on a global scale, strengthened its reputation as an international sport and eco-tourism destination and created new economic opportunities. Oman has remained stable during recession with government spending on infrastructure supporting the economyâ€™s growth. Unlike other major players in the region, Oman made a concerted effort to avoid over-building and its construction industry continues to be very active at present, reinforced by the governmentâ€™s Vision 2020 economic plan. The Games required the development of the one million square metre Al-Musannah Sports City, a coastal site 150 kilometres from Muscat, the capital
city. The project featured a mixture of sporting facilities, 200-berth marina and dedicated playing pitches with temporary spectator stands. Other developments included a 4-star hotel, apartments for media and administration staff, a variety of restaurants in the athletes’ village, a press centre and a business centre. The master-planner and developer for the Games site was Omran, Oman’s government-owned tourism investment, development and management company. Started in June 2008, the project’s completion in less than 900 days marked a record for an Omani development of this size and scale. More than 2,500 workers spent more than twelve million man hours to finish the job. Challenges included the nonnegotiable completion date. Omran started handing over the project to the Muscat Asian Beach Games Organising Committee (MABGOC) in October and all elements of the project were completed in time for the December event. Faithful+Gould’s value engineering input included the use of Omani natural
products, such as stone and marble, thus limiting carbon footprint and saving time and money. Legacy was an important consideration for this project. Major event host cities typically seek long-term benefits such as regeneration, tourism, economic positioning and transfer of knowledge. Faithful+Gould’s project management role has included helping Omran to achieve best value on transitioning the Sports Village to a mixed-use residential, commercial and tourism resort development, due for completion in October 2012 (the hotel is already operational). With the support of the Ministry of Tourism, Oman Sail was set up in 2008 to rekindle Oman’s maritime heritage and to inspire young Omanis to take up sailing as recreation and as a competitive sport. Building on the success of the Asian Beach Games, Oman has begun to establish itself as a world class venue for international regattas. The 2011 Extreme Sailing Series was hosted at The Wave, Muscat, in February, followed by the inaugural dinghy regatta at the Millennium Resort, Mussanah. Faithful+Gould provided project, cost and construction management services for the construction of the Games’ facilities. The Games site was completed in time and on budget, often requiring round-the-clock input from the professional and works teams. In spearheading the aim for ISO Certification Standards for Health and Safety, our project management team encouraged a culture change in the site environment. We were especially proud when the site earned the safety accolade of twelve million hours incident-free. Health and safety will continue as part of the project’s legacy, as the government has now legislated for a minimum standard of compliance. Globally, our experience in the sports sector includes supporting our parent company Atkins, the official engineering design services provider for the London 2012 Olympic and Paralympic Games. We have been active in the Middle East since 2004 and we now have offices in Oman, Dubai, Abu Dhabi, Qatar and Saudi Arabia. Alongside Omran’s Asian Beach Games development at Musannah Sports City, our portfolio in Oman includes Octal’s new PET plant and Glorei’s Muttawar mixed-use development. We are also working on several cost management commissions including the recently awarded Wadi Adai Interchange.
For further information contact Wilfred Asamoah on +968 24 560 478 firstname.lastname@example.org
Separating Myth from Reality The Private Finance Initiative (PFI) has recently attracted much media criticism. Politicians of all persuasions have lined up to lambast the industry which PFI has become. The absence of balanced, objective analysis however has been startling. Nick Gray, Faithful+Gould’s Head of Consult Services, considers how much of this criticism is justified and how much is politically motivated myth. Is PFI Transparent? PFI is complicated and for the operating company, riven with risks. Here’s how it works. Private sector companies organise themselves into groups (which will compete against each other) to raise finance, build an asset, operate and maintain it at predetermined standards for, typically, 25 – 30 years. These responsibilities have many cost implications, including interest on loans used to fund construction and provide ‘working capital’, construction maintenance and cleaning costs over the life of the building and insurances. All these costs are agreed between the public and private sector following a formal, legally governed, competitive tendering process in accordance with EU rules and law. This strict process ensures that any deal procured by the public sector is the most competitive the private sector can offer. Note also that the public sector is advised by
the leading law and accountancy firms who have extensive experience of these contract types. Let’s be clear, a PFI contract is a grown-up, commercial arrangement between two parties of equal bargaining power, with neither in a position to exploit the other.
The Question of Cost Certainly some parts of the cost of a typical PFI contract can be more expensive than alternatives – but not all. A large part of the cost is the debt finance needed for the building or asset to be constructed. Before the 2008 credit crisis, these loans cost typically less that 0.5 per cent above the ‘Bank’ base rate. In contrast, government can ‘borrow’ (or lend to itself) at lower rates. This differential is undisputable but remember that both Labour and earlier Conservative governments determined that ‘private finance’ was preferable to government having to find the money
up front. Remember also, the interest margin to the private sector is levied on a 25 – 30 year loan to finance a complex project. Many things can – and do – go wrong and the bank lender needs to earn a suitable return for these risks. The construction, operating and maintenance costs are also significant. Again, the risks to the private sector in offering a fixed-price, date-certain building are considerable and need to be reflected in a suitable profit margin. However these costs are procured by robust, competitive tender. Major construction companies have in the past revealed substantial, £multi-million losses on certain PFI contracts. Moreover, the demise of the Jarvis group (acknowledged at least partly as the result of weak cashflow and losses on PFI contracts), provides clear evidence of the private sector’s huge risks.
Achievement of Value It is widely accepted that non-PFI public sector buildings, once commissioned, generally do not have a long-term maintenance plan requiring the building to remain in the same condition up to 25-30 years after it was built. PFI however places a legal obligation on the private sector provider to undertake such maintenance. This obligation enables PFI to generate real, long-term value by requiring the private sector – again via a competitive tendering process – to optimise the balance between initial capital cost and long-term maintenance costs. This balance results in the lowest overall cost for the life of the asset. Perhaps more significantly, payments to the private sector under a PFI contract are subject to a strict penalty regime if the asset fails to achieve defined performance standards. Performance shortcomings mean that money will be deducted from payments made to the PFI
contractor. Interestingly, no such regime exists where a public sector body maintains its own building or services. Under PFI, services such as cleaning are periodically ‘market tested’ to ensure good value for money. Ultimately, if the prescribed standards are not met, the public sector can terminate the contract. So, is PFI deserving of the criticism levelled at it by some politicians and other commentators? Undoubtedly, it is not a perfect model of procurement but is there such a thing? Certainly it is cheaper for the government to finance capital spend by borrowing at Treasury (Gilt) rates rather than from private sector banks, but this is only part of the story. There is no evidence that private sector builders or service providers make more profit from PFI contracts tendered in formal, controlled competition, than in non-PFI procurement models. Published accounts show that in fact some PFI providers have incurred substantial losses on their PFI contracts. Moreover, PFI provides a very comprehensive transfer of risk and responsibility for delivering and maintaining the building or asset, providing the optimum cost for the building over its life. Perhaps most importantly, the UK faces a period of fiscal constraint unparalleled in the last 60 years, combined with a need to invest (on government estimates) some £200billion in the next decade on crumbling infrastructure. This cannot be achieved without massive private sector capital and expertise. For those critical of PFI, the retort is very simple: where else is the money coming from?
For further information contact Nick Gray on +44 (0)1642 675136 email@example.com
UK and europe
Cautious Optimism at
Aberdeen Athens Belfast Birmingham Bristol Cambridge Cardiff Colchester Dublin Edinburgh Epsom Exeter Glasgow Leeds London Newcastle upon Tyne Nottingham Oxford Southampton Stockton-on-Tees Stoke-on-Trent Swansea Tunbridge Wells Warrington
+44 (0)1224 620202 +30 210 681 5245 +44 (0)28 9089 5870 +44 (0)121 483 5483 +44 (0)1454 663000 +44 (0)1223 814200 +44 (0)2920 485181 +44 (0)1206 732100 +353 (0)1890 8600 +44 (0)131 221 5600 +44 (0)1372 753121 +44 (0)1392 813100 +44 (0)141 220 2200 +44 (0)113 306 6600 +44 (0)20 7121 2121 +44 (0)191 272 5150 +44 (0)115 957 4800 +44 (0)1865 734100 +44 (0)23 8033 8835 +44 (0)1642 675136 +44 (0)1782 222233 +44 (0)1792 641185 +44 (0)1892 510500 +44 (0)1925 238300
MIPIM brings together key property professionals to explore major international property development projects, connect with potential partners and strike deals over four intensive days in Cannes, France. The event’s international reputation continued to attract keen interest in spite of economic downturn. MIPIM 2011 drew 18,500 participants, six per cent up on last year. For Faithful+Gould, this was an important networking opportunity and a useful means of gauging the property market’s temperature. A mood of cautious confidence permeated the show. A report released by Standard Life Investments during MIPIM week identified a series of global investment hotspots. It suggested offices in Australia and industrial in Canada as good prospects, and in the US saw indications of the office market moving upwards from its 30-year low point. Meanwhile in Europe, centres such as London, Paris and Stockholm are seeing optimistic indications. It’s clear that UK developers are still struggling to secure funding in the current constrained market. The more stable developers who are able to selffinance, however, are in an excellent position to explore planning and investment strategies and take advantage of construction competitiveness. 28
With the private sector currently dominant, more UK activity certainly seems focused on London and the South East. However MIPIM revealed plenty of evidence of local authorities promoting their regions, ambitious for continued growth despite cuts in public funding. Cities were keen to show they are still open for business, strengthening their offering by spotlighting schemes to kick-start development. We also saw evidence of local authorities willing to take a lenient approach to out-of-town retail development. Faithful+Gould is a key player in the global property sector, offering a diverse range of project and cost management solutions to private and public sector clients. Our participation at MIPIM demonstrates our willingness to support both existing and new clients during the transition back to positive economic growth. For further information contact Alastair Kenyon on +44 (0)20 7121 2121 firstname.lastname@example.org Image: MIPIM_World 2011
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