| 7. |
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Appraisal of Accommodation Projects |
| 7.1 |
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Introduction |
| 7.1.1 |
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The roles of client Departments in accommodation projects, and those of DFP's Corporate Services Group (CSG), Central Procurement Directorate (CPD), and Land and Property Services (LPS), are explained in this section. It is generally consistent with guidance issued by HM Treasury, at the instigation of the Public Accounts Committee, about the roles of client Departments and other public bodies involved in undertaking appraisal of projects involving expenditure on accommodation. |
| 7.1.2 |
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This section should be read in conjunction with the Office Accommodation Standards Code which sets the standards for accommodation and furnishings in the Northern Ireland Civil Service. The purpose of the standards is to achieve efficient, economical and equitable allocation of the Government Office Estate and to ensure that civil servants are housed in safety and in reasonable comfort. |
| 7.1.3 |
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The Code is a reference document to be applied to the staff accommodation element of all projects. Departments and other public bodies should seek CPD advice in the development of the accommodation brief and demonstrate to CPD that the final project plan complies with the standards set out in the Code.
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| 7.2 |
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The Need for Overall Appraisal |
| 7.2.1 |
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Accommodation costs often represent a significant proportion of the total cost of a project and can therefore be a crucial factor in deciding whether or not the proposal should proceed. An appraisal must therefore be carried out which covers the cost of the project as a whole. The appraisal should refer to the (Departmental) Property Strategy as maintained by the Property Centre Manager, which contains the definitive statement of the (Department's) ongoing strategy for the meeting of operational need.
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| 7.3 |
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Responsibilities of Departments, CSG, CPD and LPS |
| 7.3.1 |
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The client Department or public body is in the best position to assess its requirement for accommodation. However, where Office Accommodation Branch (OAB) of DFP's Corporate Services Group normally provides accommodation to meet Departmental requirements, it retains responsibility for the prioritisation and implementation of all projects concerned with new or replacement buildings. LPS, CPD and CSG are well placed to assist in developing the various ways in which the accommodation needs can be met. |
| 7.3.2 |
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It is for the client Department or public body to co-ordinate the appraisal effort and take responsibility for appraising the project as a whole, incorporating the contribution of CPD, LPS and CSG. In-house economists can provide relevant general appraisal advice and should be part of the appraisal group. |
| 7.3.3 |
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Departments and public bodies should always begin appraisals concerned with the provision of new or replacement buildings with an analysis of the prior need for service provision. It is not sufficient for Departments merely to list the defects of current accommodation or simply state a space requirement. Departments must also justify the need for continuation or development of the relevant service (e.g. by reference to changes in policy, changing staff numbers and so on) before considering options to accommodate it. The amount of effort that should be devoted to such justification will vary depending on the nature of the case and is, therefore, a matter for judgement. In simple cases it may be sufficient to refer to a recent relevant report or policy document. In other cases a more sophisticated analysis of the appropriate level and/or quality of service may be necessary. Nevertheless, the question of need should always be addressed prior to the consideration of options. |
| 7.3.4 |
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Appraisals concerned with new or replacement buildings should always be initiated at the earliest possible moment. The scope for PPP options should be thoroughly examined by reference to the criteria indicated at paras 5.8 to 5.11 above. Experience suggests that new build options are frequently more cost-effective than alternatives such as lease or purchase options. However, there may be a tendency to rule them out in favour of more costly options on the grounds that the urgency of accommodation needs do not permit the delay associated with new build. This should not generally be the case. |
| 7.3.5 |
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Appraisals concerned with the location of offices and other buildings may in some cases be constrained by policy aims expressed in terms of factors such as equal opportunity and urban regeneration. Such constraints should not always be taken at face value, and should be balanced against other considerations including cost. For example, if such factors suggest restricting options to relatively high cost city centre locations, it may be appropriate to consider options at other, lower cost locations so that the cost of pursuing particular policy aims is made explicit. |
| 7.3.6 |
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Accommodation needs rarely arise overnight. Proper forward planning, including early appraisal (i.e. when the accommodation needs first appear, not at some later date when, for example, an attractive building happens to come on the market) should be conducted to minimise the extent to which 'urgency' is permitted to constrain option selection by ruling out new build solutions.
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| 7.4 |
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Procedures for Departments |
| 7.4.1 |
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At the outset of a project the client Department should agree with CSG, CPD and LPS how the appraisal of the project will proceed. In particular it should be agreed what information should be exchanged, and when. |
| 7.4.2 |
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At the same time CSG will be able to consider whether:-
- they can fund the request within existing provisions;
- the request is compatible with standard office accommodation; and
- the need fits in with broader accommodation plans in the particular area.
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| 7.4.3 |
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There should be continuing liaison and mutual exchange of updated information as the project develops. Departments should consult CSG on accommodation matters during the course of an appraisal, and they should consult other technical experts such as CPD, LPS or Departmental economists as appropriate. |
| 7.4.4 |
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Departments should note that contracts, such as to lease or purchase buildings, should not be negotiated or signed prior to the completion and approval by the appropriate authority of a satisfactory appraisal. |
| 7.4.5 |
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Where DFP Supply approval is required for accommodation projects, it remains the responsibility of CSG to seek the necessary approval. However, in cases where accommodation is required to meet a new service or development of an existing service, separate Supply approval is required and it is for the client Department to seek it. This applies to all appraisals that cover proposed service changes as well as accommodation requirements. In such cases, the client Department's submission to Supply should indicate clearly that CSG has been consulted throughout on the accommodation options and has approved that element of the appraisal. |
| 7.4.6 |
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It is the responsibility of the client Department to provide the additional capital and other resources to meet the accommodation cost.
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| 7.5 |
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Dispersal of Civil Service Functions |
| 7.5.1 |
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Within accommodation appraisals Departments must also carry out a rigorous examination of the feasibility of dispersing the functions to a location outside the Greater Belfast area in accordance with guidance issued by DFP. The current version of this guidance was issued under cover of John Hunter's minute of 22 March 1999 to Permanent Secretaries. This guidance is kept under review and Departments will be notified of any changes. |
