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HEFCE, SHEFC, HEFCW, DENI Value for Money Initiative

Building Repairs and Maintenance

How to Improve Service Delivery and Achieve Value for Money

A summary of the National Report and Management Review Guide published by the higher education funding councils' UK Value for Money Steering Group

How to Improve Service Delivery and Achieve Value for Money

An appropriate and well-maintained estate is critical to supporting the delivery of the institution's core business objectives in a cost-effective way.

Building maintenance is an essential service within the overall facility arrangements to be managed and funded by the institution. It has significant cost implications, for all institutions, if ignored.

The management arrangements for such services must be structured to meet the institution's agreed core business objectives and requirements, within its strategic and operational plans, and comply with legislation.

Institutions have trustee obligations that require assets to be maintained and to operate in compliance with legislation; budget cuts in building repairs and maintenance are not cost-effective savings.

Benefits

Effective maintenance arrangements can improve services and achieve value for money.

Approach A strategic framework that:
  • recognises the interests of different stakeholders through service delivery arrangements
  • ensures compliance with statutory regulations
  • enables the institution to achieve value for money through the management and funding of agreed maintenance priorities in strategic and operational plans.
Quality and Service A measurable, quality dimension in the service delivery of building maintenance maximises the use of limited resources.
Value for Money
  • A number of HE institutions indicate that savings of between 5 and 10 per cent of their maintenance spend are achievable.
  • Surveys conducted by the Royal Institution of Chartered Surveyors suggest as a 'rule of thumb' that at least 1.5 per cent of the estate's insurance value should be set aside to keep it in good condition.
  • Studies by the Building Research Establishment have found not only that maintenance saves time and money, but also that neglecting appropriate building maintenance can increase heating costs alone by up to 10 per cent.
Management
  • Members of the management Commitment team have clear trustee, executive or management responsibilities. The support and commitment of the key players is critical to achieve the full cost and other benefits indicated in the report.

Good Practice

Cameos of good practice in HE institutions have been included in the National Report to illustrate the benefits of having effective management arrangements for building repairs and maintenance. The Management Review Guide develops the above, by outlining a management review process to secure value for money for the HE sector.

Actions

Clear responsibility exists to maintain the institution's estate, in order to support its strategic objectives to deliver teaching and research. The study's findings indicate that savings can be made. However, to maximise the value for money benefits, a strategic framework should be in place; in turn this should be supported by properly funded management arrangements.

Effective planned and reactive building maintenance arrangements and processes should enable management actions to be informed by and delivered in the context of:

  • a strategic maintenance policy
  • knowledge of the physical condition of the estate
  • comprehensive planning arrangements
  • the funding of agreed maintenance priorities
  • adopted service level statements
  • periodic reviews of maintenance procurement
  • performance criteria that include quantitative and qualitative measures.

Extra copies of this leaflet are free.

The full documents - the 'National Report' and the 'Management Review Guide' of the Building Repairs and Maintenance Study in the Higher Education Sector - cost £15 each.
(Please send cheque with order.)

Both are available from HEFCE Publications

Northavon House
Coldharbour Lane
Bristol BS16 1QD

Tel 0117 931 7438
Fax 0117 931 7463
E-mail hefce@hefce.ac.uk
URL: http://www.hefce.ac.uk

June 1998