Do Consultants (Really) take the time to understand the needs of their Clients?

Guest article from Richard Davies - Project  Manager, Capital Projects, Property Services – Severn Trent Water 

When organisations are looking to rationalise, their first port of call is often an external consultant.  In my experience, where the consultant fails is not getting to grips with the culture of the organisation that has instructed them.....  This leads to wasted time and recommendations that cannot be implemented

 

Severn Trent Centre - Google Images

In these increasingly uncertain economic climates, all organisations are looking to minimise their cost base and gain maximum efficiencies.  This can lead to many actions for example reducing staff and an increased focus on outgoings.  This is as true for large organisations regardless of size.  It is a fact that one of the areas of focus, particularly for large organisations is the use and amount of operational space they hold, particularly if they have recently rationalised their staffing levels.

Until a few years ago, property was just something a company had to have in order to operate.  In most cases was treated as an unavoidable overhead, not a key part of the business, however it is increasingly becoming an important part of the cost base as companies look to minimise their overheads.   With modern technology allowing people to work from home, in most cases reduced work force sizes, and most companies adopting open plan rather than cellular office space companies are finding that they have more space than they need and a rationalisation is required.

Having more space than you need leads to not only more rent, rates etc, but the space needs to be heated, lit, secured and managed, all of which is a strain which organisations can ill afford in these austere times.  In addition, there has been an increased tendency to move to open plan and hot desks from cellular office due to the amount of space taken up by offices.  Consequently this reduction in space can lead to savings in many areas: - energy bills, FM, security etc.



Severn Trent Centre  - Under Construction

My work over the past 3 year at Severn Trent Water has been centred on these types of activity.  The business has an aging, dilapidated estate which is in need of significant investment.  The first part of this was a new Operational Centre in Coventry, which allows the workforce to work in a much more flexible way.  It promotes the open plan and hot desking philosophy with an IT solution that allows working from home and other places to be as productive as the office.  By creating this building (Severn Trent Centre) it allowed us to close 7 other buildings, all of which were old and inefficient.  An illustration of this can be seen in the carbon footprint as the new building uses far less energy than any one of the buildings closed on, which is another important aspect for Severn Trent Water.


Many organisations are going through similar processors at present and this rationalisation exercise should provide opportunities for property professionals across the spectrum, with re-design of space, fit out, review of leases, enacting of breaks in leases etc.  However this opportunity must not be squandered. When organisations are looking to rationalise their first port of call is often an external consultant.  In my experience, where the consultant fails is not getting to grips with the culture of the organisation that has instructed them.   Their advice is restricted to analysis of headcount, square meterage and cost thereof, without really understanding how the organisation works.  This leads to wasted time and recommendations that cannot be implemented. 

It is vital that any advice provided must be considered in the context of the culture and operations of the organisation and therefore consequently there is an increasing need for large organisations to have a resident property expert that understands both the property world and the nuances of the organisation.  Only then, can they help steer the consultant and apply the advice provided by external bodies to gain the most savings. It is, however true to say that professionals on the outside remain closer to the cutting edge and new thinking than those within client bodies as there is a certain level of insulation that comes with working within a client body.  There is not the daily interaction with other similar professionals which can lead to a lag in implementing new industry best practice.

As long as the economic climate remains in its current state of health, companies will increasingly review their property costs, which will in turn result in opportunities for consultants, either as the resident expert within a client body, or as a consultant providing advice.

Richard Davies  - Project Manager, Capital Projects, Property Services – Severn Trent Water 

Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

 

External Decorations - Routine Property Maintenance – Part 2

Nature gives us the choice of whether to ignore our buildings externally and let them deteriorate or to undertake regular maintenance and improve their life expectancy and aesthetic appeal.  We have no control over nature but we do have control over how we react to it. 

Source: Google Images

I am not a mechanic but like most people I am aware that if I do not take care of my car then it will eventually break down. Regardless of what you may know about cars, most people (but not everyone!) can do basic things such as checking oil and water levels, checking and maintaining tyre pressures as well as filling up with fuel and occasionally even cleaning the car!  In a similar way buildings require 'regular basic maintenance' in order to prevent more long term issues manifesting themselves, which if not carried out can prove to be very expensive to rectify.  Last week I discussed the importance of undertaking maintenance to buildings and introduced a number of routine basic maintenance tasks including clearing rainwater gutters, cutting back trees, shrubs and vegetation and washing down UPVC.  This week I offer some further advice in respect of external decorations.

How many times do you walk or drive past a building, which is in a very poor state repair and asked yourself why the occupants have allowed this to happen?  Allowing the external envelope of a building to deteriorate will not only give a very negative visual impression, but also create an environment for materials/components to deteriorate and decay. As an example let us consider softwood timber, which is used externally for numerous building components including windows, doors, soffit and fascia boards, barge boards, cladding and so on.  Different treatments are available, including oil and water based preservatives, which are designed to reduce the risk of moisture ingress into the timber and therefore protect and increase the serviceable life of the material.  These however do not last forever and even in the event that pre-treated timber is used it will still require regular coatings to maintain the protection.  Where pre-treated timber is not used, it is necessary to provide an alternative protection, which in most cased will be a painted finish.  Once the protective coating to the timber deteriorates, be that preservative or paint, the timber then becomes vulnerable to decay, particularly wet rot. As a general rule of thumb, the time frame for routinely carrying out external decorations is between three and five years, however this will vary depending on a number of factors. 



Timber Splice Repair - Source: Google Images

Firstly, preparation of decorated surfaces.  Even if timber is in the early stages of decay, it is still necessary to deal with the decay before applying the decorative finish.  There is not much point in just painting over decaying timber (and I have seen this many times), and hoping that the problem will some how rectify itself!  In these situations, depending on the extent of decay it may be necessary to cut out effected parts and introduce new timber (something called a splice repair), if the decay is less serious it may be more appropriate to remove areas of decaying timber and then fill with a good quality timber filler, or in serious cases it may be necessary to replace the whole component. Whatever the circumstances the repair must be appropriate depending on the extent of decay.

Secondly, quality of materials – It is essential that the correct products are used when undertaking external decorations.  You only need to visit one of the large national DIY outlets to see that there are numerous manufacturers who provide a range of products for all sorts of applications.  This seemingly unlimited choice is sometimes the problem.  Many people do not read the labels properly (sometimes not at all) and end up buying a product that is not appropriate.  A common example of this is where internal quality gloss paint is used for external applications. 

The other issue in respect of quality of materials is cost.  The quality of products can vary significantly and the cheapest price very rarely represents best value.  It often proves to be more cost effective to use more expensive products because they are likely to be better quality and therefore last longer.  More expensive products do not always guarantee this however a little bit of research into a product (nowadays with the internet you read other customers reviews) will help you to decide.  Using well know established brands may also be worth considering.  These again may prove to be more costly, however they are well known brands for a reason! 

Finally, quality of workmanship – You do not need to be a tradesperson to undertake decorations to your building, as most people can lift and use a paintbrush!   This may be true for applying a finishing coat and works of a simple nature, however a little more knowledge is required when undertaking the majority of external decorations. 

Depending on the surface to be decorated, after preparation, it may be necessary to apply an undercoat or primer, followed by a number of finishing coats.  Certain products will also come with a list of ‘manufacturers instructions’, which must be followed in order to make the finish effective.  Failure to understand and apply an appropriate level of workmanship will result in a sub-standard finish, which will undoubtedly require addressing much sooner than you would want.  I would suggest that poor workmanship was the most common factor for many of the external defects that I come across when undertaking inspections.  Therefore, in some circumstances it is likely to be more cost effective to employ the services of someone who has got the correct level of knowledge and expertise, than attempting the work yourself to try to save a few pennies.

Decorating externally on a routine basis is fundamental to maintaining and improving the serviceable life of building components and materials.  For the purposes of this article I have considered external joinery, however all materials/components should be considered in a similar way.  Nature gives us the choice of whether to ignore our buildings externally and let them deteriorate or to undertake regular maintenance and improve their life expectancy and aesthetical appeal.  We have no control over nature but we do have control over how we react to it. 

The video below shows a method of repairing a timber window frame which has suffered wet rot decay.  If the timber had decayed any further it is likely that a splice repair would be necessary. 

Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

Why Is Routine Property Maintenance So Often Overlooked? – Part 1

By adopting a planned approach to maintenance an occupier can help to avoid the need for unplanned emergency repairs. This will also help to maintain the value of the building and in some cases even help to add value

Source: Google Images

As a Chartered Building Surveyor it never ceased to amaze me when I would see significant defects or damage, which had resulted from what would have originally been a very simple thing to fix.  On occasions this was down to lack of knowledge or awareness on behalf of the occupier, however it can also be said that laziness was also a common cause. This is because many see and are aware of problems in their building but do not see any urgency as the building is still ‘functioning’. Basically, the issue is ignored!  Going back to the example of the car, it would be the same as hearing a rattling noise in your car as you drive along and instead of getting this rectified you turn the radio up, because the car is still  'functioning'. Eventually however the car will break down and the cost of repair is likely to be much more expensive than if you had dealt with the problem in the first place.  The old adage ‘prevention is better than cure’, is something that immediately comes to mind and this is particularly relevant in respect of buildings.

By adopting a planned approach to maintenance an occupier can help to avoid the need for unplanned emergency repairs. This will also help to maintain the value of the building and in some cases even help to add value.  The value of a building can be significantly affected by it’s condition, in fact there are many examples of properties of similar size and type, in very close proximity that can vary by many thousands of pounds as a result of the difference in their conditions. If regular un-costly maintenance can add significant value to a property, then you would have to ask why so many people fail to do it!

There are a number of routine basic maintenance tasks that can be undertaken in a building (both externally and internally) in order to increase the serviceable life of various components and to prevent more serious, often costly problems occurring in the future.  As you can see from my suggestions below, in most cases you do not need any specialist knowledge or training and you will only need to engage the services of a building contractor for the more risky or complicated activities or possibly where it may be more physically challenging than you are able.

Clear rainwater gutters  - Blocked gutters will allow rainwater, sometimes in high volume, to discharge onto external surfaces.  Over a period of time this can result in problems such as penetrating damp, condensation and timber decay to occur.  Large volumes of water discharging into the ground can also affect the ground bearing capacity of certain types of ground under foundations, sometimes resulting in very serious problems such as subsidence.  Therefore regularly checking that gutters are clear can prevent some very significant defects occurring in the future.

Cut back trees, shrubs and vegetation  - Trees, shrubs and vegetation provide a much softer appearance than buildings and structures and are an important feature for many when considering purchasing or occupying a building.  Whereas they have many positive qualities, if not maintained they can prove to be extremely detrimental to a building.  Trees and particularly tree roots, can undermine foundations and damage drains and are often found to be the cause or significant contributing factor to ground movement.  Therefore, trees need to be monitored and maintained when they are located within a distance that could affect a building.  If trees become an issue, specialist advice is likely to be necessary from an Arboriculturist  in order to provide accurate remedial measures to address the problem.

Source: Google Images

Vegetation in close proximity to a building will retain a large amount of moisture.  Ivy is a common example of vegetation that grows rapidly and can cover large areas of external masonry walls.  Whilst this may provide a certain amount of ‘charm’ for many, in prolonged wet conditions, the ivy will retain a large amount of water, which will be in contact with the external wall.  This will result in colder surface temperature of the wall, which in turn can increase the risk of condensation internally.  Add to this the fact that ivy provides a habitat for all sorts of insects which can use it as a route into window frames, air bricks and other weaknesses in the building including at high level and suddenly it starts to lose a little bit of it's charm.  This is issue is not exclusive to ivy, in fact any vegetation that is allowed to grow in close proximity to a building has the potential to cause the same issues, and should therefore by regularly maintained and controlled.

Wash down UPVC  - Over the last thirty years UPVC has become increasingly popular as a material used for external building components, particularly for guttering and downpipes and window frames.  UPVC external cladding, soffits and fascia boards are also now commonly used in place of timber due to the perceived reduction in maintenance and improved life expectancy.  To a point this is correct, however it is a complete misconception that once UPVC is installed that it can be left forever and does not need any maintenance.  Have you ever noticed that when first installed that UPVC has a ‘shiny gloss’ finish.  However over a period of time once exposed to external elements, the surface will dull down.  This can be due to photo-oxidation which causes bleaching (staining) and loss of pigmentation of the UPVC.  Once this occurs the UPVC will pick up dirt, dust and other particles and become discoloured.  Simply washing down UPVC surfaces every six months with warm soapy water will significantly reduce the risk of this occurring.

Next week, In part 2 I will discuss some further routine maintenance tasks that can be undertaken in a building (both externally and internally) in order to increase the serviceable life of various components and to prevent more serious, often costly problems occurring in the future.   

Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

UK Housing Market - What's in Store for 2013?

2013 is likely to be another challenging year in the UK housing market, however there will undoubtedly be opportunities for those who are willing to make tough decisions.  As with all areas of life, there are no guarantees, although bricks and mortar will always be a good investment as long as you get the timing right!

Source: Google Images

At the very beginning of a new year it is only natural to reflect on the year that has gone and to think about what the coming year has in store for us.  This is particularly relevant for those who are looking to either take their first steps on the housing ladder or for those who are already on the housing ladder and for different reasons are looking to move.  In a slow moving, stagnant or even contracting economy (depending on which statistics you believe), the decision on when to take this step or make this move is difficult.  

The term ‘affordable’ has taken on a whole new dimension over the last 30 years where the average price of a house in the UK has increased from £25,580 in 1982 to £163,910 in Q3 2012 (Nationwide 2012).  With many lenders now requiring a deposit of around 20% it is not difficult to see why so many first time buyers are struggling to enter the market.  This then has a knock on effect further up the property ladder as those looking to move from their first purchase are severely hampered by the lack of first time buyers and this is then replicated even further up the chain.  The outcome of this is a housing market which is gasping for air as it struggles to show any life.  Developers demonstrate a lack of confidence in the market by delaying or mothballing new house building projects, even some which have already obtained planning permission!  This in turn restricts supply as developers are reluctant to build houses which they will struggle to sell.  The whole thing is a complete mess, however will things get any better in 2013?

Simon Rubinsohn Chief Economist at RICS makes the following assessment in the RICS 2013 Housing Market Forecast:

‘The average house price in the UK looks set to rise by a further two percent next year, despite the uncertain outlook for the economy. More positively, the amount of sales going through should also see an increase across the country, climbing to its best level since 2007, as the Funding for Lending scheme helps boost the availability of mortgage finance.

But these tentative signs of recovery in the sales market should not blind us to the very real problems that still exist. Even with the Funding for Lending scheme and some other government policies beginning to be felt in the mortgage market, many first-time buyers will continue to find it difficult to secure a sufficiently large loan to take an initial step on the housing market. Meanwhile, the alternative of renting is becoming more and more costly with a further increase in rents likely in 2013. Critically, the government needs to ensure that the conditions are in place that will enable the stock of new housing, whether for purchase or rent, to rise more rapidly.’

It is clear that there is never a ‘perfect time’ in the housing market, and in reality the ability to be able to join or move in the housing market will usually come down to availability of finance, being brave enough to take a leap of faith and sometimes pure luck!  We only become aware of favourable (or not so favourable) market conditions after the event and it is these moments that we are striving to predict.  History shows us that many of those who purchased houses at the height of the market in 2007 are now in negative equity and with hindsight we are able to look back and see that for many this was not a good time to purchase.  Unfortunately, the future does not give us the benefit of hindsight, so we make our decisions based upon what we hope will happen. 

Source: Google Images

For the first time buyer I would suggest that 2013 will be a good time to step onto the housing ladder.  Interest rates are generally low and there are signs that lenders are starting to make finance more readily available, although there is always the issue of the deposit that will needed.  There is also a good quantity of houses for sale on the market and sellers who have had their houses on the market for some time are likely to be much more willing to negotiate on the price.  At present, this really is a buyers market and first time buyers should use this to their full advantage.   Rental values are high and continuing to rise.  Trying to save for a deposit while renting at the same time is a false economy and any money that is used for rent each month is wasted money that would be better spent on a mortgage.  I am aware that this is an unavoidable predicament for many people, however it must be very frustrating to know that in some situations it would actually be cheaper to pay for your monthly mortgage than the amount you are paying to your landlord each month for rent.


Those who are already on the housing ladder and looking to move are in a different situation to the first time buyer.  As house prices have reduced since 2007 (this varies depending on location), there will be many who will bide their time and hope that the market improves with prices eventually returning to the value they purchased for, or even more, however this could take a number of years.  There will also be those who take the pragmatic ‘relative view’ of the housing market.  These people accept that their house has reduced in value however also realise that a house that they may be interested in buying would also have reduced proportionally as a result of market conditions.  Therefore they feel that they are not making any loss in real terms.  The decision to move in 2013 for these people will depend on whether they take a pragmatic view as described above or whether they decide to play the waiting game and hope for an improvement in the market.  Those in negative equity will need to either be patient for a number of years or consider downsizing or possibly selling at a loss in order to reduce their debt burden or worst of all, re-possession.

2013 is likely to be another challenging year in the UK housing market, however there will undoubtedly be opportunities for those who are willing to make tough decisions.  As with all areas of life, there are no guarantees, although bricks and mortar will always be a good investment as long as you get the timing right!

Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.