Over the past 20 years, a case has been made for investing in well-designed construction to create value for the individuals and organisations that own, manage and inhabit buildings.The main argument is that:
(i) construction and design can add considerable value for clients; and
(ii) this investment represents a small fraction of the overall cost.
A wide range of the ratios have been put forward to explain the relationship between construction cost / operational cost / staff cost. One of the earliest ratios promulgated is 1/5/200 and continues to be used today. However, other evidence (based on real cost figures and net present value) suggests the ratio may be significantly lower. For an office building in London the ratio is 1/1.5/15. Other research indicates a ratio of 1/0.4/12. Although substantially lower, these ratios can still provide justification for spending more on design and construction.
In recent years, design has been added to the ratio (i.e. 0.1/1/5/200) to reflect the potential to save money and resources by investing more in pre-design/briefing or in design itself.
How important is it for the construction industry to promote accurate figures to clients? This debate explores which ratios are appropriate to use and the consequences of inappropriate claims. What is meant by ‘added value’ and how much added value can be ascribed to the building itself? How can the intangibles from good design such as human health, wellbeing and productivity be accounted for in terms of actual value? Is there a problem if the construction industry oversells its products with inflated ratios? Does the industry have a consistent and sound approach to define the relevant ratios of cost and value? Does it have a persuasive argument about added value?
Chair: Peter Hansford, Chief Government Construction Advisor
Speakers:
• Graham Ive, Bartlett School of Construction & Project Management, UCL
• Don Ward, Constructing Excellence
• Roger Madelin CBE, Argent LLP
• Will Hughes, School of Construction Management & Engineering, Univ of Reading

We would be delighted if you could join us at this by-invitation only debate. If you would like to attend please register here. Places are limited and will be allocated on a first come basis.
Venue: The Bartlett, UCL Faculty of the Built Environment, Hampstead Road, London NW1 2BX
Timing: Debate 6.30 - 8.30 pm followed by networking and a glass of wine

Background reading

- Constructing Excellence (2005) Be Valuable: A guide to creating value in the built environment, Richard Saxon

- Eclipse Research Consultants (2002a) Better designed buildings: improving the valuation of intangibles, A Literature review. http://www.eclipseresearch.co.uk/download/design_innovation_and_value/better_designed_buildings.pdf

- R. Evans, R. Haryott, N. Haste and A. Jones (1998) The long term costs of owning and using buildings. London: Royal Academy of Engineering.

- W. Hughes, D. Ancell, S. Gruneberg and L. Hirst (2004) Exposing the myth of 1:5:200 ratio relating initial cost, maintenance and staffing costs of office buildings. ARCOM 20th Annual conference. Available from: http://centaur.reading.ac.uk/12142/

Graham Ive (2006) Re-examining the costs and value ratios of owning and occupying buildings. Building Research & Information, 34(3), pp 230 - 245.

- S. Macmillan, ed. (2004) “The long-term costs of owning and using buildings” in Designing Better Buildings: Quality and Value in the Built Environment, pp 42-50. Abingdon: Taylor & Francis

- D. Pearce (2003) The social and economic value of construction: the construction industry’s guide to sustainable development. London: Construction Industry Research and Innovation Panel.

Downloads

Edge Debate 65 - What is the true ratio? Event flyer

Joint Debate with The Feeling Good Foundation.

Can our drive for profit margins, structural aesthetic and energy efficiency simultaneously create healthier, more productive buildings? Should occupant wellbeing be the optional variable? Why value engineer wellbeing out when we could be value engineering it in? Are built environment professionals members of the wider public health workforce?The Feeling Good Foundation (a hub for research and guidance on wellbeing in the built environment) has assessed views of the UK property sector and has found that agents, developers and investors do believe that wellbeing has a role in the design, marketing and management of property assets despite appearing to be contrary to wider project and industry activities. The World Green Building Council has commissioned guidance and best practice information on features of green building that enhance health, wellbeing and productivity in the hope of transforming this knowledge into mainstream design practice. At the same time they are developing up proposals for common financial metrics with which to measure health, wellbeing and productivity. Are we on the brink of a tipping point? Should it take development of financial metrics to put occupant wellbeing back at the centre of building design? And is putting a price on occupant wellbeing the only way to ensure that it will be designed into, rather than out of, the value engineering process?

Chair: Andrew Scoones – ngenuity Ltd, the Edge & Feeling Good Foundation board

Speakers:

• Richard Francis, The Monomoy Company, Feeling Good Foundation board and World Green Building Council’s chair of wellbeing report Metrics Group – Summary of the WGBC report “Health, wellbeing and productivity in offices: measuring impact and sharing best practice”

• Elina Grigoriou, Grigoriou Interiors and Feeling Good Foundation board – Summary of the FGF white paper “Wellbeing Matters: Assessing views on the impact of the built environment on wellbeing”

Expert Panel:

• Professor Derek Clements-Croome, Feeling Good Foundation/University of Reading

• Lynne Sullivan, Sustainable BY Design, the Edge

• Elanor Warwick, Affinity Sutton, the Edge

• Charles Seaford, New Economics Foundation

If you would like to attend please register here. Places are limited and will be allocated on a first come basis.

Venue: Davison Highley, Lower Ground Floor, The Old Brewery, 16 Brewhouse Yard,
Clerkenwell, London EC1V 4LJ

Timing: Debate 6.30 - 8.30 pm followed by networking and a glass of wine

Downloads:

Edge Debate 64: Flyer

Further Reading:

Adaptation Sub-Committee (2014) Managing climate risks to well-being and the economy:ASC progress report 2014

Affinity Sutton & HACT (2014) Measuring the Social Impact of Community Investment: A Guide to using the Wellbeing Valuation Approach

NEF (2010) Good Foundations: towards a low carbon, high well-being built environment report

Pilkington et al. (2013) Engaging a wider public health workforce for the future: a public health practitioner in residence approach Public Health vol.127 (5), Pages 427–434

Shrubsole et al. (2014) 100 unintended consequences of policies to improve the energy efficiency of the UK housing stock, Indoor and Built Environment vol. 23 (3). Pages 340-352

UCL’s HEW project (2011-2016) Integrated decision-making about Housing, Energy and Wellbeing

The fourth session in the Inquiry was on the subject of the future value of built environment professionals.

The Inquiry is examining the way forward for the professional organisations in the construction industry, taking evidence from a range of bodies and individuals. Evidence gathering sessions will be held in public as a series of Edge Debates in the early part of 2014 each looking at a separate theme and with input and evidence from appropriate professional bodies and other witnesses. Written submissions to the commission will also be welcomed.

The fourth debate addressed Future value: and “How can institutes share and co-operate to improve the quality, standing and value of professionals? “

Chair: Paul Morrell

Speakers include:
Graham Watts, Chief Executive CIC
Bill Bordass, Usable Buildings Trust
Daisy Froud, AOC
Sunand Prasad, Penoyre + Prasad
Lee Franck, Arup
Ciaran Malik, Ramboll UK

Venue: The Building Centre, 26 Store St, London WC1E 7BT

Debate sponsored by Rehau

Commission sponsored by The Ove Arup Foundation

Commission support by the SocEnv

Downloads:

- Session 4 Report (Edge Debate 63) Future professionalism: Future value
- Edge Commission - Session 4: Speakers’ notes
- Commission Summary (Note no. 7)
- Edge CoI on Future Professionalism - timetable (Note no.8)
- The Commission - Objective & remit (Note no. 9)
- Further reading

The third session in the Inquiry was on the subject of society’s expectation of built environment professionals.

The Inquiry is examining the way forward for the professional organisations in the construction industry, taking evidence from a range of bodies and individuals. Evidence gathering sessions will be held in public as a series of Edge Debates in the early part of 2014 each looking at a separate theme and with input and evidence from appropriate professional bodies and other witnesses. Written submissions to the commission will also be welcomed.

The third debate addressed Society: and “How can professionals working across the built environment and their institutions maintain relevance and deliver value to society?”

Chair: Paul Morrell

Speakers:
Matthew Taylor, Chief Executive RSA
Colin Haylock, Immediate Past President, RTPI
Barry Clarke, Immediate Past President, ICE
Sue Illman, President LI

Venue: The Building Centre, 26 Store St, London WC1E 7BT

If you would like to attend the series of debates comprising the Commission of Inquiry on Future professionalism please email the Edge at contact@edgedebate.com. Please note that spaces are very limited.

Debate sponsored by Rehau
Commission sponsored by The Ove Arup Foundation

Downloads:

- Session 3 Report (Edge Debate 62) Future professionalism: Society
- Edge Commission - Session 3: Speakers’ notes
- Robin Nicholson’s blog at cullinanstudio.blogspot.co.uk 8.5.13
- Twitter stream from the 3rd Commission session on ‘Society’
- Commission Summary (Note no. 7)
- Edge CoI on Future Professionalism - timetable (Note no.8)
- The Commission - Objective & remit (Note no. 9)
- Further reading

The second session in the Inquiry looked at the impact of economic drivers on professional values.

The Inquiry overall is examining the way forward for the professional organisations in the construction industry, taking evidence from a range of bodies and individuals. Evidence gathering sessions are being held in public as a series of Edge Debates in the Spring of 2014 each looking at a separate theme and with input and evidence from appropriate professional bodies and other witnesses. Written submissions to the commission are also welcomed.

The second debate addressed the Economy: and “How can professionals continue to do what they regard as the right thing, when this is not a priority for their client?”

Chair: Paul Morrell

Speakers:
Ian Brinkley, Chief Economist, The Work Foundation
Stephen Hodder, President RIBA
Sean Tompkins, Chief Executive Officer RICS
Nick Russell President – IStructE

Venue: The Building Centre, 26 Store St, London WC1E 7BT

If you would like to attend the series of debates comprising the Commission of Inquiry on Future professionalism please email the Edge at contact@edgedebate.com. Please note that spaces are very limited.

Debate sponsored by Rehau

Commission sponsored by The Ove Arup Foundation

Downloads:

- Commission Summary (Note no. 7)
- Edge CoI on Future Professionalism - timetable (Note no.8)
- The Commission - Objective & remit (Note no. 9)
- Session 2 Report (Edge Debate 61) Future professionalism: The Economy
- Edge Commission - Session 2: Speakers’ notes
- Further reading

Following our the previous events on ‘New Professionalism‘, in early 2014 the Edge will be holding holding a Commission of Inquiry to examine how the professional institutions and other representative bodies should address pressing issues facing the design and construction sector. The Commission will be chaired by Paul Morrell OBE, the former Chief Construction Advisor to the UK Government.

The Inquiry will examine the way forward for the professional organisations in the construction industry, taking evidence from a range of bodies and individuals. Evidence gathering sessions will be held in public as a series of Edge Debates in the early part of 2014 each looking at a separate theme and with input and evidence from appropriate professional bodies and other witnesses. Written submissions to the commission will also be welcomed.

The first debate was on the theme of the Environment: “Should it be a professional requirement to address environmental issues, including responsibility for long-term performance and reporting? “

Chair: Paul Morrell

Speakers:
Keith Clarke, Director of Sustainability, Atkins
Stephen Matthews, Chief Executive CIBSE
Chris Blythe, Chief Executive Officer CIOB
Scott Steedman, Director BSI & Editor in Chief Ingenia - RAE

Venue: The Building Centre, 26 Store St, London WC1E 7BT

If you would like to attend future sessions of the Commission of Inquiry on Future professionalism please email the Edge at contact@edgedebate.com. Please note that spaces are very limited.

Debate sponsored by Rehau

Commission sponsored by The Ove Arup Foundation

Downloads:

- Commission Summary (Note no. 7)
- Edge Commission - Session 1: Speakers’ notes
- Edge CoI on Future Professionalism - timetable (Note no.8)
- The Commission - Objective & remit (Note no. 9)
- Session 1 Report (Edge Debate 60) Future professionalism: The Environment
- Tweet reach #edgedebate - 5th March 2014
- Tweet reach #futureprofessionalism - 5th March 2014
- Further reading

Investment in sustainability measures makes financial sense but the payback is usually longer than the five-year parliamentary term. Successive governments have proved reluctant to compel individuals to invest in upgrading the energy efficiency of their homes because this is politically unpopular. Proposals to make homeowners upgrade the energy efficiency of their home when building an extension have been dropped three times. Can a democratically elected UK government ever introduce the tough measures needed to ensure we hit our 2050 carbon reduction target?

Host: Babita Sharma, BBC World News presenter

Speakers:
John Sauven, Executive Director, Greenpeace
Rt. Hon. Lord Deben, John Gummer, Chairman, Committee on Climate Change
Jane Davidson, Director, Institute of Sustainable Practice, Innovation and Resource Effectiveness’s (INSPIRE) and former Minister for Environment and Sustainability, Wales

Jane Davidson will be introducing the Edge’s thinking on a National Plan as part of the debate