As the government puts pressure on the public sector to implement its Operational Efficiency Programme and the resultant efficiency drive, the industry is considering the effect it will have on them. Hard-hit construction organisations will be concerned that they will suffer more than most in the inevitable consequential downturn, and are looking likely to face a slow climb out of recession. The public sector had become viewed as a relatively safe haven in a plummeting market for commercial offices, retail buildings and a stalling housing market. But with price sensitivity already a driving force in public sector work, and a glut of sub-optimal stock in the market, the question arises of how the industry will respond to Operational Efficiency.
John Hicks – Head of Public Sector at Davis Langdon says: “To make the kind of efficiencies required, a re-calibration of how public services are delivered is necessary. Only then can the public sector achieve what we call ‘Total Efficiency’. The scope for wider efficiency gains within the public sector is significant – yet very achievable in this market. Re-modelling of what and how services are delivered is necessary with the refurbishment and modernisation of business premises being favoured over new builds; and there is much to be learnt from best practice and experiences across the government thus far.
However, focusing on built assets alone is not enough. Under Total Efficiency, we encourage our clients to focus on five key areas: realising value through sustainability; achieving certainty; unlocking value from built assets; adopting the right strategy; and achieving more for less. This service will be even more enhanced with the added knowledge from our strategic consultants at DEGW. “
Understanding the cost of operation – of which a building is merely a facilitator – and across the whole portfolio owned by government departments, is an essential prerequisite in starting the efficiency drive within the public sector. Agencies will have to use tried and tested methods to collect this data – as well as using expertise to understand how people use buildings, and what future requirements will be needed here on. To gain further productivity and efficiency, a thorough understanding of work practices and space utilisation is required to deliver a livelier, more fruitful workplace. One that attracts and retains the right people in the public sector and one which positions the public sector well in the war for talent which will re-emerge as the UK economy finally takes off again.
The environment will also have to be considered in the efficiency drive. The agenda for the new Chief Construction Adviser once again illustrates this. The Carbon Reduction Commitment will require Governmental departments to tackle the impact their workspace has on the environment and will need to demonstrate the environmental advantages of smarter and more efficient workplaces. Doing things ‘differently’ during this time will not only move the Government towards their search for 100% efficiency – but it could also make the public sector more attractive to future generations who could serve within it.
