Completeamclub 300415

The social housing regulator

Successful places

with homes and jobs

A NATIONAL

AGENCY

WORKING

LOCALLY

Changes to the

Regulatory Framework-

Asset Management

Asset Management Club

Hertfordshire- April 2015

Roger De La Mare

Assistant Director Regulatory

Operations


Regulatory Framework: why?

Changes to respond to greater complexity and increased

risk profile of the sector

Fundamental to ensuring sector can continue to attract

private finance needed to deliver new housing supply

In a more complex environment boards need to more

actively manage risk

Revised G&FV Standard sets out requirements on how

should do this – what a well run business should be doing

anyway


Framework Changes

New standard now published, includes:

don’t put assets or viability at undue risk

skills and capabilities of board to match activities

active stress testing

maintain records of assets and liabilities

boards to certify compliance with Governance and

Financial Viability Standard


What should RPs be doing?

Challenge yourselves on skills and capabilities

Review existing arrangements with third parties to

ensure fit with requirements in Standard

Arrangements in place for boards to sign off

compliance with Standard (for accounting periods

ending on / after March 16)

Consider additional requirements for groups,

unregistered parents and profit making providers

as appropriate


What should RPs be doing

Robust stress testing:

– Includes a range of different scenarios

– Number of different stress tests should be run

– Test what breaks the business – what is the plan for

this?

– Ensures appropriate mitigations are in place

Asset and liability registers

– Understand risk flows around the group

– Information should be at a sufficient level to allow

business to be priced effectively by a rescuing

organisation


Asset and liability records -

Standard requirement

Registered providers shall assess, manage and where

appropriate address risks to ensure the long term viability

of the registered provider, including ensuring that social

housing assets are protected. Registered providers shall

do so by…

(a) maintaining a thorough, accurate and up to date

record of their assets and liabilities and particularly those

liabilities that may have recourse to social housing assets


Code of Practice

“RPs should think about the position of their assets as a

whole, including whether any other entities with which

they have links, whether formal or otherwise, could impact

on their assets…”

cover the breadth of the registered provider’s activities

and identify its assets and liabilities

break down asset records by business stream, clearly

identifying social housing assets and identify where

assets are encumbered

key information and records which would be needed

should the assets transfer to new owners are readily

available at all times


Why?

“To ensure that registered providers understand their

housing assets and security position and have swift

access to this information in relation to decision making

and risk management.” (Code of Practice)

Necessary for emergencies

Good practice for risk management

Supports effective asset management and financing

Stronger grasp of what is owned, what is owed, and

how they relate


Liabilities

“The kind of liabilities considered should include items

which relate directly to the social housing assets and

those which might have an impact on the business as a

whole.”

loans including borrowing

from other group

companies or related

undertakings

guarantees

leases

derivative exposures

cross default provisions

a duty or responsibility

that obligates the entity

to another

the potential for any

impairment including in

non-core activities


What we are looking for

Application, not form

Boards being assured as to the quality of their records

Accessible, usable and accurate information

Understanding of asset values, security position,

potential losses and recourse

Understanding of risk flow, potential chains of recourse,

social housing asset exposure

No prescribed format

Content will vary according to provider complexity


Changes to our operational approach

In regulating the new framework we want to:

– Gain a more strategic grasp and evidenced

understanding of both the short-term and long-term

risks in providers’ businesses

– Gain greater assurance about providers’ vulnerability

to covenant breaches and the risk to social housing

assets from non-social housing activity

– Better integrate our viability and governance work so

that we reach more rounded judgements

11


The new model – modes of operation

Quarterly Survey – provide early warning system

regarding all providers’ short term viability

Two modes of operation:

– Periodic In-Depth Assessments (IDAs)

– Annual Stability Checks:

12


IDAs and Stability Checks

IDAs: They will be bespoke for each provider and focus on:

A provider’s risk profile, exposures and the quality of its

governance to deal with those risks

Viability

Stress testing and mitigation of risks

Asset and liability registers will be looked at where we

have concerns that lead us to do so

Stability Checks: focused gap analysis to ensure that no

material changes have occurred since our last in-depth

assessment of the provider.


What next

New framework came into effect 1 April

Framework changes at the heart of our new

approach to regulating the sector

Services

Cost management Project management Building surveying

Strategic asset managementPlanningHealth and safety

Sectors

Hospitality ResidentialRetail

InfrastructureData centresOffices

Asset Management

About us

John Rowan and Partners is an award winning,

multi-disciplinary property and construction consultancy,

based in London delivering projects worldwide.

Improvement

Julian Ashby, chair of the HCA regulation committee said:

• The HCA is ‘raising the bar’ this year (2015). Landlords should set out plans for making better use of assets, provide cost per unit data & set clear performance targets

• ‘There is still an evident lack of understanding of the need to demonstrate value for money to a sceptical public (and in particular to tenants & government)’.

Asset Management

• Property Assets

• Land and built assets including buildings and infrastructure used regardless of tenure

• Property Asset Management

Our definition

“Defined as a structured holistic and integrating approach for aligning and managing over time service delivery requirements and the performance of assets to meet business objectives”

Why asset management?

• Ensure resources are used in the best possible way

• Maintain & improve the portfolio

• Make assets work harder

• Future needs & aspirations of board and residents including leaseholders

• They are homes!!!

• Social Indicators

Social Indicators

Demand

• Void loss

• Turnover

• Re-let time

• Long term voids

Stock Condition

•Average spend per property (10 years)

•Decent Homes Failures

•Maintenance frequency or spend

•SAP / EPC

Environment and Community

• ASB incidences

• Length of Residency

Socio-Economic

• Indices of Multiple Deprivation

• Rent Arrears

Asset Performance

• NPV

• Yields

• Opportunity Rating

You have a strategy but?

• You have all encompassing Asset Management Strategy

• Is it understood across the organisation?

• Is it “your” AMS for “your” business ?

• Do you plan and forecast rather than police?

• Is your data intelligent?

Strategic approach

• Net present value (NPV)

• Stress testing

• Models

• Option appraisals

• Asset and liability register

• Data is key

• Leaseholders…

Financial model

Estate

Line

Ref

Estate Code Building

Age Avg

No of

Rented

No of

Leaseho

lders

Model

Rank

Scores

Overall

EUH-SV

(Avg per

Unit)

NPV

(Avg per

Unit)

% to Mean

NPV Per

Property

Estate

Performance

(NPV)

Yield

(Market

Rent)

High

Value

Opportu

nity

rating

85 COLCLO 8 42 14 73 1.82 72 1.08 48 0.36 40 7.38 71,066 60,642 218% 3,395,976 33% 1

59 CARMIC 7 29 7 45 2.41 57 1.23 47 0.36 15 7.89 73,511 54,252 195% 1,953,071 58% 2

87 COLEGR 11 41 8 1 2.55 5 1.55 2 0.60 1 8.54 99,693 48,515 175% 2,377,248 53% 2

276 PILLFO 7 12 13 1 2.55 56 1.24 17 0.47 10 8.03 85,212 47,366 170% 1,184,150 67% 3

3 ABBEYCFT 13 27 5 74 1.78 63 1.17 64 0.27 71 6.39 63,670 46,045 166% 1,473,441 57% 2

208 LINDENBA 11 16 10 1 2.55 31 1.40 7 0.55 3 8.30 77,583 42,223 152% 1,097,805 53% 2

201 LECKHA 18 25 0 49 2.36 45 1.33 12 0.51 50 7.21 82,686 40,817 147% 1,020,419 54% 2

298 ROTHER 24 25 0 38 2.45 3 1.59 42 0.37 36 7.44 101,278 40,480 146% 1,012,007 63% 2

209 LINDENCD 12 20 0 1 2.55 30 1.41 4 0.57 6 8.27 91,943 40,343 145% 806,856 49% 2

221 MEDLAR 8 24 12 68 2.06 60 1.21 71 0.19 35 7.44 52,917 39,837 143% 1,434,141 46% 2

315 SONGHU 11 21 0 30 2.49 32 1.40 61 0.28 57 7.00 72,958 38,415 138% 806,714 37% 2

389 WOODLE 21 19 1 44 2.41 35 1.38 62 0.28 20 7.78 51,923 17,051 61% 341,029 41% 2

378 WILLIA 20 36 0 52 2.33 43 1.35 49 0.36 39 7.38 47,645 15,596 56% 561,446 44% 2

338 SUTTON 26 25 13 28 2.50 39 1.37 67 0.24 67 6.77 66,592 14,671 53% 557,505 55% 2

264 PARKVI 20 61 1 59 2.23 4 1.58 23 0.42 61 6.91 56,587 14,220 51% 881,642 41% 2

359 TRINITSW 155 31 0 57 2.26 68 1.09 69 0.21 72 6.30 70,786 14,185 51% 439,723 59% 2

273 PEVENS 110 19 6 33 2.48 29 1.42 25 0.41 33 7.48 57,570 14,091 51% 352,275 68% 3

186 KHARTO 105 13 7 63 2.19 20 1.47 36 0.39 18 7.82 54,461 10,452 38% 209,038 74% 3

266 PECKHA 86 52 0 64 2.18 51 1.27 13 0.50 68 6.62 65,717 10,347 37% 538,051 56% 2

237 MOUNTF 20 53 0 62 2.20 11 1.51 15 0.47 38 7.40 56,075 9,443 34% 500,489 40% 2

86 COLDHA 77 16 8 1 2.55 38 1.37 3 0.58 8 8.19 49,962 8,449 30% 202,776 68% 3

117 EASTD 148 46 1 1 2.55 15 1.48 51 0.36 53 7.17 74,664 8,101 29% 380,739 64% 3

4 ACACIA 19 13 8 60 2.23 54 1.26 41 0.38 26 7.60 58,536 7,385 27% 155,083 70% 3

306 SEDDON 24 14 0 66 2.17 37 1.37 29 0.39 31 7.53 43,800 1,188 4% 16,631 39% 2

36 BLEGBO 61 3 7 1 2.55 36 1.37 46 0.37 30 7.53 64,308 -3,571 -13% -35,711 78% 3

152 GOWRIE 155 11 0 1 2.55 53 1.26 53 0.35 59 6.93 74,402 -3,991 -14% -43,906 62% 2

331 STORMO 216 18 0 46 2.41 55 1.26 34 0.39 74 6.14 73,793 -4,033 -15% -72,600 61% 2

283 RALEIG 105 11 0 69 2.03 59 1.22 50 0.36 75 5.63 43,562 -20,546 -74% -226,002 43% 2

Estate

Environment &

Community

Socio-EconomicDemand

NPV Graph

Option appraisal

UPRN ArchetypeTenure

Option

Improvement

OptionPrevious NPV NPV

Disposal

Value

Performance

Table

(o n N P V value)

1139A0030001 FLAT_1Bed Social Standard -£10,761 £51,178 38,086 5 4

1139A0030002 FLAT_1Bed Social Archetype -£10,729 £51,933 38,086 5 3

1139A0030003 FLAT_1Bed Social Dispose -£1,873 Removed 38,086 Removed

1139A0030004 FLAT_2Bed Social Default £10,776 £10,776 50,854 18 8




1139A0030008 FLAT_2Bed Affordable Default £40,706 £45,067 50,854 1 5

1139A0030009 FLAT_2Bed Social Default -£21,355 -£21,355 40,024 >30 11

1139A0030010A FLAT_1Bed Market Archetype New Unit £139,574 50,854 2 2

1139A0030010B FLAT_1Bed Market Archetype New Unit £154,971 51,500 2 1

1139A0030011 FLAT_2Bed Social Default -£21,497 -£21,497 38,951 >30 12


Break even year

Before After

Total Annual Income 79,307£ 89,782£

Variance 10,476£

Units

Social 11 10

Target 0 0

Market 0 2

Affordable 1 1

Leasehold 0 0

Total Rented 12 13

Total Year 1 Costs -£ 88,690£

Total 30 Year Investment Costs 1,851,315£ 1,383,834£

Variance

Total NPV 24,014£ 479,572£

Variance 455,557£

Total Desktop Market Value (Whole Estate) 694,150£

Net Indicative Disposal Value (Whole Estate) 587,943£

Net Indicative Disposal Value (Selected Units) 38,086£

Value for money

• HCA – driver

• Not just procurement

• Set out measurable plans for making better use of assets based on an understanding of costs, values and yields

• provide actual cost per unit trend data

• be specific about your performance within your peer group

• report performance vs last year’s value for money (VFM) targets

• set clear VFM performance targets for the next period

• “plan to raise the bar still higher”

Leaseholders - do not overlook

• Not just Section 20

• Reserve funds

• Lease terms

• Service charge %

• Get it right

• First Tier Tribunal (LVT)

• “Doreen's Law”

• “The awarding authority recovers service charges from 26,803 residents, across 1,306 schemes or estates. In previous years the awarding authority has substantially under-recovered service charge contributions as a result of:

•direct service chargeable costs that have not been fully recharged or recovered;the deficit between the overhead costs of administering services and the management fee charged

Good Practice Seminar

30th April 2015

Gareth Lewis

Director of Partnerships

Watford Community

Housing Trust

• Transfer 2007

• 5,000 homes

• Watford and Three Rivers

• 2012-17 – 500 new homes

Opportunities

• Strategic Direction

• Market and S106 opportunities

• Assets key to delivery

Assets

• Garages and amenity land

• Sheltered schemes

• Nimbys

• Consultation – cost and reward

Delivery

• Partnership

• Be flexible – and firm

• Clear vision

• Do what you say

Boundary Way

The Meriden Estate

openwaterconsulting.co.uk - vision collaboration voice connection value growth futures

JOHNEYNON.RIBA.FCIOB

Open Water Consulting

30th April 2015Asset Management Herts

http://www.secbe.org.uk

BIM, UK BIM Level 2 and Asset Management


AgendaIntroduction

Level 2

Myth busters

Case studies

Trends

Resources

BIM


JOHNEYNON.• Architect• FCIOB, RIBA, MAPM, CEnv• Design Manager• Consultant, work winning, BIM, design management, strategy,

process and facilitation• CIOB Ambassador 4BIM• FAS Board member• Contributed to CarbonAction 2050• Chair CIOB DM Group• B555, CIC BIM Forum, BIM4SME, CPIc• Chair/Champion SEBIMHUB• Author, CIOB Design Manager’s Handbook• Author, CIOB BIM Handbook ( in progress)

07/05/2015 38


Building Information Modelling

Building Information Management

Better Information Management

Building Information Movement

Virtual Design and Construct?Infrastructure?3D?

Lifecycle?Asset?

Common Data Environment07/05/2015 39

Business Information Management

openwaterconsulting.co.uk - vision collaboration voice connection value growth futures07/05/2015 40


Information

construction design

briefoperation

“Information and data on a journey around the asset lifecycle…”

Collaboration / Integration

©JOHNEYNON2013


• Bim graphic

buildipedia.com/autodesk


Asset Timeline

Brief and Design Delivery Operate

Light bulb moment.Customer wants an asset/project/buildingIt can take years to briefand design a project toreach the point of delivery

“I want…” “Build…” “Occupy, use, adapt…” “Demolish, recycle…”

Considerable effort isfocussed by the industryon the delivery phase which may last a few years, butrepresents only a small percentage of the overall Life and cost of the asset.The opportunity to create realCustomer value is before andafter delivery.Briefing and design decisionsimpact the ability to

deliver value in operation.

Year 0 Year 100? +

Cost 0.1 Cost 1 Cost – Maintain 5 – Operate 200For an operational life that couldbe in excess of 100 years, how much effort is expended at briefing and design stages to makedecisions which create real value for the Customer?The opportunities to create exceptional valueare immense!

1/3/30Ref - Richard Saxon – Be Valuable, Constructing Excellence

JOHNEYNON.2013



5D Quantity take-

off, costing4D

Programming

Life cycle costing

& assessment

Safety

planning

Site BIM

logistics plan

Design coordination

& clash detection

Supply chain

management

Procurement

Facilities

management

Energy

monitoring

Visualizations

Simulations

thermal Simulations

fire

Simulations

acousticsSimulations

day lighting

Embedded

carbon

Off site

manufacture

O&M

Fixtures, furniture

& equipments

BIM based production

progress management

BIM

Design >>> Construction >>> Operation

Laser scanning

Point cloud data

Brief/Definition/Design/Manufacture/Construct/Operate/Recycle……and on

University of Salford and others

3D printing

Automated

construction

Compliance

Validation

RFID tags – Field BIM

??Change

control/management

../../../../RomoI/Local Settings/Temporary Internet Files/Temporary Internet Files/OLK141/finland/3rd_floor_assembly_FAST.wmv

../../../../RomoI/Local Settings/Temporary Internet Files/Temporary Internet Files/OLK141/finland/3rd_floor_assembly_FAST.wmv

http://indohomedesign.net/futuristic-office-interior-visualization-by-stanislav-orekhov-from-rusia/futuristic-office-work-space-interior-visualization-by-stanislav-orekhov-from-rusia/

http://indohomedesign.net/futuristic-office-interior-visualization-by-stanislav-orekhov-from-rusia/futuristic-office-work-space-interior-visualization-by-stanislav-orekhov-from-rusia/


2025 Construction

David Philp/BIS


BIM maturity'A rich information model, consisting of potentially multiple data sources, elements of which can be shared across all stakeholders and be maintained across the life of a building from inception to recycling' – NBS

Mark Bew/Mervyn Richards


BS 1192:2007

PAS

11

92

/2

PAS

11

92

/3

BS1

19

2/4

PAS

11

92

/5

The

BIM

Pro

toco

l

GSL

dP

ow

Cla

ssif

icat

ion

UK BIM Level 2

“The Eight Pillars of Level 2”

07/05/2015 48


(COBie)

(BS 1192:2007 – CDE - The Daddy!)

BIM Level 2 - Defined


Level 2: process and deliverables

David Philp/BIS


- PAS 1192/2

BIM Taskgroup/PAS1192/2/Mervyn Richards


- PAS 1192/2

BIM Taskgroup/PAS1192/2/Mervyn Richards

INFORMATIONDETAIL DEVELOPS

THROUGH THE STAGES

ASSET LIFECYCLE STAGES

INFORMATION/DATA EXCHANGES

CLIENT DECISION POINTS BASED ON ABOVE INFO


UK BIM Taskgroup / PAS 1192/3


• And just when you thought we were getting grips with Level 2….

07/05/2015 54


http://www.digital-built-britain.com




David Philp/BIS




openwaterconsulting.co.uk - vision collaboration voice connection value growth futuresA world history of art/outblush.com 62


Bbc.co.uk

07/05/2015 63


“smartworld”

Cisco.mshcities.go green.uremia07/05/2015 64



openwaterconsulting.co.uk - vision collaboration voice connection value growth futures67

So…………..what next?Mobile AugmentedConnected, many levelsPaperlessAMaA – insituMaterialsTechnologies/IT• Nano• Materials• Von Neumann

Inevitable?Job/role patterns changedNetworked, evolvedVirtual teamsVirtual supply chainsVirtual industry that delivers real results

TechnicalProfessionalRaised perceptionSpecialised andMultivalent

Construction industry

Environment -

IncreasinglyChallenging!

BIM

07/05/2015


ArchitectTechnologist

StructuresMEP

QSPM

AcousticsFire

PlanningBREEAM/LEED

Building ControlParty WallH/S/CDMc

QA

BIMCDELean

IPD/IDCDfM

(BIM) Info/Tech Manager

Asset Lifecycle

Techno enabled

Institutions?

Super institute?

Design/Manufacture/Operate

No baggage

BIM

len

s

Where we are… Where we might be…

You are here!

2014 2035?

07/05/2015 68


Built Environment

BIM

IoT/IoE

Smart city movement

Mobile

Cloud

Connected

Big Data

Convergence crossover

Tech

My crystal ball…Some advice….Futures….

07/05/2015 69


www.bimtaskgroup.org

UK Government BIM websiteResources

07/05/2015 70

http://www.bimtaskgroup.org


• Support your local BIM Hub!• http://www.bimtaskgroup.org/bim-regional-

hubs-champions/

http://www.bimtaskgroup.org/bim-regional-hubs-champions/


• BIM4SME• http://www.bim4sme.org


NBS BIM survey 2014• http://www.thenbs.com/topics/BIM/articles/n

bs-national-bim-report-2014.asp

07/05/2015 73

http://www.thenbs.com/topics/BIM/articles/nbs-national-bim-report-2014.asp


Dictionary/Acronymshttp://bimblog.bondbryan.com/document/

07/05/2015 74

“BIM: PRACTICAL VIEWS &

PERSPECTIVES”

30th April 2015

Shelagh Grant

Chief Executive, The Housing Forum

MORE HOMES, BETTER HOMES

The cross sector

membership network

Voices solutions from our

membership to policy

makers

Independent and originated

from Egan Review

INFLUENCING,

NETWORKING &

INFORMING

Speaking to the industry

THE HOUSING FORUM MEMBERSHIP IS

DRAWN FROM:

House builders, Developers

Contractors

Housing Providers

Specialists

Suppliers

Local Authorities

Investors

PRACTICAL CHALLENGES FOR THE

HOUSING SECTOR

Leadership

Ownership

Integrity

Revisions

PRACTICAL CHALLENGES FOR THE

HOUSING SECTOR

Value for money now or when?

A team concept

Design out inefficiency

Tipping point?

BENEFITS

Clash detection

Tie in with Home Performance Labelling (BIM

enabled)

Consultation

Management in use and whole life benefits

Map

ViewData

View

RISKS AND PITFALLS

Training and in-house expertise

Meeting government expectations

That’s too much information!

OUR STORY SO FAR

Manufacturers keen to link to Designers

Working Group interest

Building Homes for the Future

Investing in our Housing Assets

Smarter Skills: Smarter Resources

BIM4Housing

BIM FOR ASSET MANAGEMENT

Potential for repairs

Positive effect on tenant satisfaction

Not for mass-scanning – but for archetype

3D BIM objects – boilers, windows, etc.

FOR THE FUTURE

A communications tool on site

Design and quality is still the central issue

Way to encourage new talent to enter the

industry

Better Homes, Communities and Business

10TH anniversary in 2015/16

4500 homes, 700 leasehold and 150 shared

ownership

Sunday Times Top 10 Employer 4 years running and

Top 50 Stonewall Workplace Equality Index

Active development and acquisition programme

Housing and BIM - The Poor Relation

What B3 wants from BIM as Client

20% lower capital costs or at least a Good Deal!

Efficient & collaborative design, development and

handover process

Accurate, accessible and useable asset information

Forward maintenance plans and costs

More Energy Efficient & Better Designed Homes

Our BIM journey so far… Date: 30th April 2015

BIM in ECD

• 2008: Bought Revit licences

• 2009: Bought training

• 2011: Started using it…! (BIM Level

1)

• 2012: All ECD jobs delivered in

Revit

• 2013: Set up Revit users group

• 2014: Appointed Revit Manager

• 2015: Shared models (BIM Level 2)

Why BIM for ECD?

• Future direction of industry (2016)

• Reduced coordination risk

• Increased understanding of building

and better analysis tool

• Speed and cost savings?

ECD Lessons so far…

• Timing of training is crucial

• Critical mass improves

knowledge share

• The right tools for the right

job

• Clash detection very useful

• Programme implications

• Importance of partnership

working

Where do we use BIM?

NEW BUILD HOUSING PROJECTS

Where do we use BIM?

HOUSING REFURBISHMENT PROJECTS

What stages do we use BIM?

FEASIBILITY to PLANNING

What stages do we use BIM?

WORKING DRAWINGS TO PRACTICAL COMPLETION

Recent Projects: Haringey Infill Sites

FEASIBILITY TO PLANNING

• 8 Infill sites across borough

• Tight programme delivered on time

• Complex planning process with numerous versions produced at short

notice

• Model used to generate high quality CGI’s

Recent projects: Canonbury House

FEASIBILITY TO PRACTICAL COMPLETION

• Small highly constrained site

• SIP panel construction for speed.

• 3D model supplied to contractor

• Trial project for staff: time and cost implications

Recent projects: Wilmcote House


• First large scale refurbishment project delivered in Revit

• UK Case Study for Europhit programme – designed to achieve Enerphit

standard

• Efficiencies in scale

• 3D modelling with 2D detailing

• Modelling software used Quantity Surveyor for quantities

Recent Projects: Shepway Council

PLANNING TO PRACTICAL COMPLETION

• Preplanning works by others. V. limited information supplied

• Modelling popular with client showing greater detail

• Redesign caused by non-compliance issues from original design

• Small project with poor profitability but opportunities for future

replication

Next Project: The White House (B3 Living)


• Refurbishment of 5 storey ‘Wimpey no-fines’ building

• Targeting BIM level 2 with shared model

• Potential conversion of roof space will be modelled in 3D

Completeamclub 300415

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