Smart Investment Planning

Kostas Koultzis
Large estate holders are familiar with the headaches arising from across-the-board condition surveys. We’re spearheading a targeted, more effective approach.

It is long accepted wisdom that a large estate should undergo regular and methodical condition surveys, as the basis for planned maintenance and replacement decisions. Ideally this will form part of a wider asset investment plan, encompassing capital, operational and maintenance costs.

Faithful+Gould is pioneering a different approach that reduces surveying time and cost, ultimately providing a route to optimised capital maintenance programmes in a highly efficient and cost effective way.

This sounds good in theory and whilst conditions surveys do have a place, at Faithful+Gould we’ve worked alongside many clients who find that this approach doesn’t serve them well – in fact, it presents them with more problems than answers.

The principle of surveying 20 per cent of the estate each year, getting around the whole in five years, means that decisions are based on data that’s largely out of date. If only the critical buildings are surveyed, followed by that data being extrapolated across the estate, the result is, unfortunately, not very accurate.

We are pioneers...

Faithful+Gould is pioneering a different approach that reduces surveying time and cost, ultimately providing a route to optimised capital maintenance programmes in a highly efficient and cost effective way.

Our Smart Investment Planning proposition is based on the RICS published New Rules of Measurement 3 structure, and uses industry best practice guides, such as CIBSE Guide M and BCIS for asset life. The result is a high-level prediction of the estate’s lifecycle costs, and an optimised spend plan, both of which inform an estate wide capital asset investment strategy.

A Smart Investment Planning approach drives value out of basic existing client property data, that clients should have available, utilising this information and applying industry best practice to build an initial asset information model across the client portfolio. Asset information model costs are derived from Faithful+Gould’s own library of functional life cycle cost models, built on industry standards and utilising our extensive sector knowledge.

How can this benefit you?

Faithful+Gould utilise existing client condition data and target surveying to high risk or spend areas to further refine the initial prediction and bring the result in line with the current known condition of the estate.  The approach has various other benefits for clients, such as:

  • providing a rapid view of life cycle investment demands for the entire portfolio and up to 80% cheaper than the traditional approach
  • big picture view of risks and liabilities
  • the ability to analyse and impact assess alternative investment scenarios
  • understand long term investment needs with limited data
  • balance investment decisions when funding is constrained
  • optimise total expenditure over the long term while minimising time to value for end users

Smart Investment Planning builds on our industry-leading strength in the collection, structuring and management of asset data. We combine this with our multi-sector experience of whole life costing, and our authorship of current industry standards, to offer greater visibility and certainty to organisations responsible for large estate portfolios.

We expect the industry will increasingly embrace this predictive approach, and view it as a viable option for ensuring the right level of investment is delivered on the right assets at the right time.

Originally authored by Kevin Chrisp.

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