How Turnkey Real Estate Procurement is Helping the Higher Education Sector

Universities wishing to enhance their visibility, particularly among international students, have also seen success in increasing their annual intake. Higher education and universities are quickly becoming one of the top occupiers in the capital as more regional institutions set up their sites in London.

To successfully penetrate these markets, regional institutions need to acquire and convert property at pace. With a dearth of appropriate building stock in popular city locations, universities are increasingly targeting ex-commercial spaces for their growing student populations. Given the need for efficiency and speed, traditional procurement methods are ill-suited to these ventures. Only through precise and analytical D&B strategies can institutions combine rapid changes in use with certainty of cost and delivery.

Academic bodies are governed by the “September hard stop” and devise procurement strategies that ensure all work will be delivered to schedule. By moving away from traditional procurement and into D&B, academic institutions can avoid costly delays and keep their project on track. Rather than making property decisions a whole year in advance, design and build allows universities to have greater scheduling flexibility and focus on the outcomes of the project. Interior fit outs can be planned in parallel with design, which again saves time in tender document preparation.

D&B procurement also allows for clear communication through one dedicated provider who has ownership of the entire project. Removing the hassle and friction that often come with managing multiple contractors, this arrangement enables a more harmonious and streamlined experience. This further increases the likelihood of meeting the September deadline.

What is a B1 use class building?

A B1 use class refers to an allowable business use under the Use Classes Order and comprises three key elements:

• Offices, other than those that fall within the A2 use class (financial and professional services)
• Research and development
• Light industry appropriate to a residential area (i.e. not detrimental to local amenities through noise, vibration, smell, fumes, soot, ash, dust or grit)

In England, on 1 September 2020, the B1 use class was revoked following changes to the Use Classes Order. All B1 uses are now subsumed into a new Class E, which unites some use classes under the categories Commercial, Business and Service. Class E developments serve the needs of visiting members of the public, and/or are suitable for town centre areas. Class E also allows for extensive mixed-use development, recognising that buildings may serve multiple functions simultaneously.

By switching to a D&B procurement model, academic institutions can prevent unforeseen cost increases by establishing a fixed contract price from the outset. While construction projects generally are associated with time and cost overruns, D&B minimises these impacts.

With a single point of responsibility for both design and construction, there is less expenditure and engagement required on professional fees. Contractors also usually work for an agreed lump-sum price and stick to it. So long as the client doesn’t demand major changes to the brief, certainty of cost can be assured throughout.