AFTERCARE GUIDE. Developing efficient buildings for any occupier

Transcription

1 AFTERCARE GUIDE Developing efficient buildings for any occupier

2 Cover image: New Street Square, Landsec This report was produced by the British Property Federation and researched by Tuffin Ferraby Taylor LLP. About the British Property Federation The British Property Federation (BPF) represents companies owning, managing and investing in real estate. This includes a broad range of businesses comprising commercial real estate owners, the financial institutions and pension funds, corporate landlords, residential landlords, as well as all those professions that support the industry. For more information on the BPF please visit About Tuffin Ferraby Taylor LLP Tuffin Ferraby Taylor LLP (TFT) provides development, built asset and sustainability consultancy. TFT brings an independent viewpoint to commercial property matters and delivers objective advice to minimise risk and maximise asset values. Using their complementary areas of expertise, they help their clients to create productive and efficient environments. For more information on TFT please visit 2

3 Content Introduction 4 What is Aftercare? 5 Who should be involved? 6 What are the Benefits and Challenges? 7 When should Aftercare be considered? 8 The Aftercare Process 11 Stage 1: Preparation and Brief 15 Stage 2: Concept Design 22 Stage3: Developed Design 24 Stage 4: Technical Design 26 Stage 5: Construction 27 Stage 6: Initial Aftercare Handover and Close Out 29 Stage 7: Extended Aftercare in Use 34 Conclusion 36 Appendix A: St James s Market Case Study 37 Appendix B: 4 Kingdom Street Case Study 40 Appendix C: Role and Responsibility Matrix 43 Glossary 50 Data and Bibliography 53 3

4 Introduction While there is significant effort across the construction and real estate sector to improve building performance, reduce overall environmental impacts, and increase occupant health, wellbeing and satisfaction, unfortunately many sophisticated and sustainable buildings are still failing to perform according to their design intent. There are several, often interrelated causes ranging from overly complex buildings beyond the capability and understanding of the building manager/ facilities management (FM) team, or a mismatch between initial building services set up and commissioning, and incoming tenant(s) operational needs. This increases expenditure on operation and maintenance over the building s lifetime - disappointing for those paying for additional energy costs and management effort, be these owner occupiers or tenants. Associated with this are reduced levels of occupant comfort and satisfaction. Aftercare is most effective when a collaborative ethos is embedded from the outset and this Guide seeks to provide constructive advice for developers, owners and tenants to help them avoid underperformance. There is also further information on where responsibilities lie at different stages of the project on p

5 What is Aftercare? Aftercare is the term used for a set of strategies that seek to ensure the building occupants get full value from the premises, and the asset performs well for its owner/occupiers. It often provides for an extended involvement of key design team members and the main building contractor post-handover to review performance during operation and fine tune the building. Media lounge, The Crown Estate A key component of preparing for aftercare is collaboration with those who will be operating and maintaining the building, to ensure the operational requirements of the proposed building are understood by the design team. This necessitates the consideration of aftercare at the earliest opportunity. A common reason why aftercare and other strategies are deployed is a perceived performance gap between how buildings are designed and how they perform in practice from an energy and carbon perspective 1,2&3. Initial and extended aftercare contributes to the sustainability of a building and there is evidence for associated benefits that accompany more sustainable buildings such as improved occupant wellbeing and productivity 4&5. Sustainability frameworks such as BREEAM, LEED and Greenstar promote better handover and aftercare activities because of the direct and positive influence across interrelated aspects such as efficient operational energy performance, occupant comfort and satisfaction. In addition, the industry is increasingly embracing the need for initial and extended aftercare to support customer/tenant satisfaction and landlords see this as critical to customer attraction and brand differentiation. Part of establishing the brief and provisions for aftercare will be to identify the key drivers and outcomes required. 5

6 Who should be involved? Clients 6 This Guide is intended to provide Clients with key aspects to consider when setting out their requirements for aftercare, to ensure new developments perform well in occupation. Architects and Engineers This Guide addresses what is necessary at each stage of the building lifecycle for the delivery of high quality handover and aftercare. Traditionally architects and engineers have played a limited role during the extended aftercare period that falls within the occupational phase of the building. Yet the knowhow of engineers and architects during the in-use phase can be invaluable in determining where buildings are performing sub-optimally in relation to the design intent and original performance criteria, and providing corrective recommendations. Contractors As developers procurement strategies will vary, sometimes the contractor will be in place as the coordinator of aftercare processes. Many contractors have effective procedures for the provision of aftercare, and differentiating defect rectification obligations under the contract(s), and what additional deliverables may be provided to ensure an optimal level of aftercare provision for a particular project. Property Managers/FM Team/Building Manager The involvement of the property manager or FM team is critical to successful aftercare. They should be involved at the earliest opportunity and where the building/ facilities manager is not able to be confirmed at the early stages, the team may consider seeking specialist commercial property management advice during key points in the design and construction phases. The property manager/fm team will assist with: Setting the brief for aftercare; Identifying key operational requirements to be addressed by the design to ensure efficient operation, maintenance and servicing; Design reviews; Reviewing and input into the commissioning plan; Producing the FM Mobilisation plan; Handover and training; Maintenance planning and the Asset Management Plan; Defect process management; Supporting the tenant fit out process by liaising with fit out contractors; Leading tenant training; Updating operations and maintenance manual with changes from approved alterations by tenant(s). Letting Agents Clients see the advantage of using the provision of aftercare as a selling point, incorporating this in marketing material for the development, and enhancing their brand which is demonstrated by the positions taken by The Crown Estate and British Land outlined in the case studies. Letting agents may be called upon to market the attractions of a wellmanaged and efficient space. Well-briefed tenants may seek to understand the total cost of occupation of a property, looking beyond more traditional core concerns such as location and rent. Aftercare also limits post-completion complications ensuring a hassle-free handover for incoming occupiers. Occupiers The Guide provides occupiers of commercial space with an insight into how they can ensure the space in which they have an interest is managed well. Occupiers should be encouraged to consider how aftercare processes can be of assistance in facilitating a streamlined fit out which integrates effectively with the base build and allows swift occupation by tenant, as well as improving operational efficiency and occupant satisfaction. The case studies provided outline the key stakeholders involved and their roles and responsibilities. 6

7 What are the Benefits and Challenges? Regulations for building energy and carbon performance do not account for all the energy uses within buildings 3. Investor questionnaires, GRESB 8, concerns over the price of utilities and, perceptions of an as yet undefined financial risk associated with future climatic changes have driven well-advised property developers, landlords and occupiers to be concerned with the actual performance of buildings. Development of speculative buildings has typically resulted in buildings designed to be flexible enough to accommodate a range of occupiers. However, it has also meant that optimising building performance proves more difficult when the building is occupied. Compounding the problem is the fact that the tenant s fit-out can be geared toward base compliance without a guarantee that dialogue will take place to encourage more sustainable choices to be made at the outset. Dilapidations and in particular a tenant s obligations at the end of its lease are likely to act as a barrier to progressive practices in addressing building performance. Reinstatement provisions in leases and licences for alteration typically require removal of the tenant s modifications, which may include improvements and perhaps result in unnecessary waste as fixtures and fittings are removed at end of lease that might still have fulfilled the remainder of their useful life. The introduction of Minimum Energy Efficiency Standards the Energy Act 2011 will make it unlawful to renew existing tenancies or grant new tenancies if the property fails to meet a minimum Energy Performance Certificate Rating (EPC) of an E, and all sub-standard buildings (subject to some exemptions) will require an upgrade after The introduction of the legislation will change incentive structures for the improvement of the fabric and service performance of buildings, but it is also likely to shine a light on building performance, both physical and operational. It is possible that there may be an expectation versus delivery risk for owners of properties that are not MEES-deficient but where the tenant has the expectation that the property is energy efficient and will therefore cost less to occupy than less efficient counterparts. To support a consistent approach to aftercare, buildings that operate optimally and deliver excellent occupant satisfaction, this Guide recommends: Greater collaboration between the base build team, the building manager/fm team and the tenant fit out; Post-occupancy reviews of building performance to inform fine tuning; Sharing of lessons learnt to feedback to Clients, design and construction teams, facilities managers, and the wider industry. It will be unlawful to renew or grant new tenancies if the property fails to meet a minimum EPC of E after

8 When should Aftercare be considered? Aftercare processes can be deployed at various points in the building s life cycle, but are typically applied on new construction or major renovation works. Aftercare will be most effective if it is a requirement within the development brief from the outset. This allows roles and responsibilities to be clarified with regards to the delivery of aftercare, and ensures this is considered throughout the design and construction phases. This accords with the RIBA Plan of Work that obliges project teams to check that the principles of the Handover Strategy and post-completion services are included in each party s Schedule of Services during Stage 1 Preparation and Brief. Economic Drivers for Aftercare A superior working environment, and more satisfied occupants; Business-focused operation and maintenance; Cost-effective and best-value performance of building services and assets; Reduced FM risk; Carbon and energy management; Better defined operating cost estimates (subject to design and construction stage analysis); An engaged and informed end user; Enhanced performance under asset performance benchmarking tools such as GRESB 1 and BREEAM 2. The Global Real Estate Sustainability Benchmark 8 is an annual assessment of the performance of real estate owning organisations via questionnaire on an annual reporting round. The GRESB survey inquires about the deployment of system commissioning and building energy management systems as a means to improve the efficiency of their portfolios. A number of proprietary building rating systems 9 including the WELL Standard, BREEAM and LEED incentivise post occupancy evaluation; the latter two environmental benchmarking tools also promote other processes that are contributory to aftercare such as detailed commissioning and verification, production of detailed maintenance and operations plans, provision of FM training, and seasonal commissioning. 8

9 Victoria Gate, Hammerson 9

10 St James s Market, The Crown Estate, 10

11 The Aftercare Process We recommend following the Aftercare Process Map below (p.12-14) to embed aftercare practices into the activities of developers, consultants and contractors. For ease, we have mapped the Guide as closely as possible to the RIBA 2013 plan of work 10 to help the audience interpret who does what, when and how and facilitate coordination of deliverables. This is a similar approach to the BSRIA s Soft Landings 11. BSRIA Soft Landings Soft Landings is defined as a building delivery process which runs through the project, from inception to completion and beyond, to ensure all decisions made during the project are based on improving operational performance of the building and meeting the client s expectations [it] provides a step-by-step process for clients and their project teams to follow [to] help solve the performance gap between design intentions and operational outcomes. The diagram Aftercare Process Map (p.12-14) summarises the key tasks and key information exchanges that should foster a successful aftercare approach and provides a good basis for a project specific Aftercare Strategy. Clients and their Project Managers will need to consider from the outset how aftercare will fit within their procurement strategy. Clients may prefer a separate contract for aftercare services, or to embed the requirements within the main contract. Where the end occupier is unknown, the strategy for aftercare will likely evolve throughout the project. The Client will need to spell out reasonable responsibilities that it expects the consultants and the contractor to fulfil both during and after the design and construction process. Feasibility Studies completed for the client should include consideration of the operational and maintenance aspects of aftercare, whether the budget is realistic relative to client requirements and whether (particularly in the case of a refurbishment) re-use of existing facilities or no intervention would achieve a similar result. Particular care should be exercised to ensure that any potential legal or structural impediments to conducting aftercare are scoped at this point. These might include: The need for planning permission or building regulations approval for certain upgrades; Tenant permission for entry to their demise for purposes other than maintenance; Partial site information in the case of an existing property acquired by a client; Budgetary constraints (for example on a property in a non-prime market that is already quite highly geared). It is critical to clearly set out the expectation of collaboration within tender documents, the requirements of initial and extended aftercare, and to include in the evaluation process the contractor s experience and response to understanding the requirements. 11

12 Aftercare Process Map Stage 1: Preparation Brief Stage 2: Concept Design Stage 3: Development Design Key Tasks Identify Project Objectives, the client s Business Case, Sustainability Aspirations and other parameters or constraints and develop Initial Project Brief. Key Information Exchanges Actions and outputs will depend on the scope (e.g. speculative, prelet etc), scale and complexity of a project. Examine Site Information and make recommendations for further information including surveys, required. Preparation of Feasibility Studies and assessment of options to enable the client to decide how to proceed. Determine client s Risk Profile and agree the Project Programme and preliminary Procurement Strategy. Assemble Project Team, agree Scope of Service, Contract Relationship and Design Responsibility for each participant, Develop BIM and Aftercare Strategies with clear responsibilities for each party in the supply chain, Information Exchanges and conclude Appointment Documents. Undertake review of Lessons Learned. Confirm the aftercare budget and prepare the Aftercare Strategy that identifies the aftercare objectives, targets, roles and responsibilities and track key actions and outputs at each workstage. Initial Project Brief Aftercare Strategy BIM Strategy Project Programme Preparation of Concept Design including outline proposals for structural design, service systems, site landscape, outline specifications and preliminary cost plan along with environmental, energy, ecology, access or other Project Strategies. Agree developments to Initial Project Brief and issue Final Project Brief. Review Procurement Strategy, finalise Design Responsibility including extent of Performance Specified Design and take actions where required. Prepare Project Manual including agreement of Software Strategy, BIM Execution Plan and extent of Performance Specified Work. Prepare Construction Strategy including review of off-site fabrications, site logistics and H&S aspects. Building manager/fm/managing Agent team input useful at this stage including review of concept proposals. Keep a log of feedback e.g. in the aftercare strategy. Concept Design (including outline structural and services design, associated design strategies, preliminary cost information Draft Metering Strategy Final Project Brief Schedule of relevant environmental legislative requirements Finalise Aftercare Strategy Preparation of Developed Design including coordinated and updated proposals for structural design, services system, site landscape, outline specifications, cost plan and Project Strategies. Metering strategy to encompass appropriate sub-metering (including special uses). Implement Change Control Procedures undertake Sustainability Assessment and take actions determined by Procurement Strategy. Review Construction Strategy including H&S aspects. Generic design stage asset registers developed restricted to type and anticipated capacity. Undertake a reality check with the input of the Building manager/fm/managing Agent team focus on usability, ease of commissioning and manageability of key elements such as user controls and interfaces, energy metring strategy, innovative technologies. More than one reality checking session may be required to focus on one or two key elements at a time. Developed Design (including the Coordinated Architectural, Structural and Services Design and Developed Cost Information) The Stage 1, 2, 3 and 4 outputs may be used for tendering and contract purposes depending on the Procurement Strategy as influenced by the client s Risk Profile, time, cost and quality aspirations and how early contractor involvement and Specialist Subcontractor input is to be undertaken. 12

13 Stage 4: Technical Design Stage 5: Construction Preparation of Technical Design information to include all architectural, structural and services specifications including the Lead Designer s review and sign-off of all information. Performance Specified Work to be developed in sufficient detail to allow development and integration by Specialist Subcontractors during Completed Design stage. Take actions determined by Procurement Strategy including issuing in packages where appropriate. Prepare and submit Building Regulations Submission. Review Construction Strategy including sequencing programme and critical path, and H&S aspects. Metering strategy to be embedded into technical design and specifications. Technical design reviewed by FM. Progression of Specialist Design by Specialist Subcontractors including the integration, review and sign-off of Performance Specified Work by the Lead Designer and other designers as set out in Design Responsibility document. Undertake action from Procurement Strategy or administration of Building Contract as required. FM Procurement starts if not already appointed (specialist FM consultancy should have been sought at the early stages in this situation). Appointment of managing agents (if not already appointed), and at this stage seeking their critique of the building from a design for management perspective. Undertake at least one reality check review session with the input of the building manager/fm/asset Management team, and main contractor and any specialist sub-contractors where available. Undertake Lessons Learned review with main contractor. Technical Design of consultant aspects in sufficient detail to enable construction or Performance Specified Work to commence The Specialist Design including the integration of Performance Specified Work Undertake Lessons Learned review with main contractor and key supply chain sub-contractors. Undertake at least one reality checking review with main contractor and key supply chain contractors. Offsite manufacturing and onsite construction in accordance with the Construction Programme. Regular review of progress against programme and any Quality Objectives including site inspections. Administration of Building Contract. Resolution of Queries as they arise. Building manger/fm team attend site regularly to ensure deep understanding of building construction and operation. On lead up to PC, based permanently on site. Reconcile information required for commissioning, training, handover, asset management, future monitoring and maintenance and ongoing compilation of as constructed information. Provide draft & final O&Ms to agreed deadlines, and other base build technical documents such as Building Log Book, and Building User Guide. Produce draft and final versions of tenant pack including Fit-Out Guide, Tenant/Occupant Guide. Procure maintenance contracts. Managing agents commence mobilisation. Training begins. Complete sustainability assessment. As Constructed Information BIM Model to Client Tenant pack drafted: Tenant/ Occupiers Guide and Fit-Out Guides O&Ms & technical guides produced Resourcing Strategy Supply Chain Strategy FM Environmental Management Communication Health and Safety Strategy Metering Strategy Stages 4, 5, 6 may occur concurrently depending on the Procurement Strategy. Work may also be undertaken in packages to facilitate its development by Specialist Subcontractors. Early package procurement may also occur during stage 3 depending on the procurement route. The Project Programme should set out the timescales for these overlapping designs and, where appropriate construction stages.

14 Stage 6: Handover Stage 7: In Use Heads of Terms and Agreement to Lease -> leasing/licensing (ref to BBP Green Lease Toolkit). Consideration required of landlord position as regards recovering of a) monitoring/operating costs and b) any capital costs. Confirm any restrictions on tenant alterations detrimental to building performance. Agreement of maintenance and access to data (e.g. locking out of BMS?). Tenant User Guide supplied. Complete training provision. Explain benefits of building to Lettings Agents. Managing Agents continue mobilisation process. Building, systems and supporting documents, O&Ms, commissioning data, etc to be ready for prospective tenants when undertaking their due diligence. Design Review of Occupier s Proposal. Design Sign Off (landlord consent). Contractor Handover to Occupier. Fit-out works sign-off subject to tenant review. Embed KPIs with Managing Agents. Information to be provided to a new owner/occupier: Meter map (may be obtained from ESOS Assessment, investment grade energy efficiency audits and Heat Networks Regulations compliance); Maintenance schedules (where available); Commissioning records; Results of in-use investigations; Overview of BMS; Occupier/ building user guide; Tenant pack including Fit-Out Guide, Tenant/Occupant Guide. Advantages of Aftercare leaflet (refer to provided Explaining the Benefits Guide). Feedback undertake post construction Lessons Learned review including formal review the Aftercare Strategy against original objectives and targets. Seasonal commissioning commences. POE undertaken e.g. occupant surveys, building performance review etc. Fine tuning of building services take place. Tenant Fit-Out Specification Agreement for Lease Lease Memoranda of Understanding Updates to Asset Management and Facilities Management Information Tenant pack: Occupant/ Tenant Guide and Fit-Out Guides Completed BIM Model Meter Map Maintenance Schedules Commissioning Records Results of IN-Use Investigations Overview of BMS Feedback/insights e.g. POE, CIBSE TM54, Lessons Learned Formal Review of Aftercare Strategy against realities Stages 6-7 will include a mobilisation process typically performed by the managing agent whereby newly built units are taken from construction at the point of building acceptance, through marketing and the defects liability period into fitting out and occupation. It takes on board the client s asset management strategy, the requirements of the leasing team, how the building operates during fitting out (logistics plan, engineering regime) and ultimately service delivery to tenants. Involvement of managing agents will be critical in preparation of the Occupier s Guide and Fit-Out Guides, service charge budgets, personnel considerations, FM Strategy, Environmental Management, Communication and Health and Safety Strategy. A full responsibility matrix for each stage can be found p

15 Stage 1: Preparation and Brief Aftercare will be most effective when the associated requirements are incorporated into the project brief from the outset, incorporating lessons learned from previous projects, as highlighted in St James s Market case study. This enables the Client to consider their expectations of the aftercare process, and allows the project team members, and the contractor, to understand, scope and account for their respective roles and responsibilities at the relevant project stages. Aftercare services and strategy should be included within key design team appointments and the associated wider brief. At this stage, the Client may also be able to confirm the likely building manager/fm team who will responsible for the day to day operation of the building. If this is possible, the scope and fee for their early involvement should be confirmed and their involvement embedded into the aftercare strategy for the project. Where the building manager/fm team is not able to be confirmed the design team may consider seeking specialist commercial property management advice during key points in the design and construction phases. Clients seeking to apply aftercare in a variety of other circumstances, such as post-refurbishment or mid-stream in a lease, will also need to incorporate the requirement into the project brief and within key project team appointments. In the case study provided by The Crown Estate, the requirement for aftercare is embedded within the service level agreement for their managing agents to deliver this provision across the portfolio of assets being handed over following development/refurbishment. Project Managers (PMs) are considered best placed to promote the consideration of aftercare, developing the project specific aftercare framework with support/input from the building services consultant and other relevant team members. The PM will include provisions for delivery of aftercare ensuring requirements are incorporated into the project brief and/or the project execution plan, appointment documents, milestones within the project programme, coordinate lessons learnt, any additional inputs (e.g. the FM/building management team) and studies (e.g. CIBSE TM54), and keep a record of ongoing aftercare actions using an aftercare schedule or tracker or similar. Aftercare services and strategy should be included within key design team appointments and the associated wider brief. Projects may decide to form an aftercare team comprising core members of the design team that have a significant influence on aftercare such as the client (e.g. development or asset manager, or project monitor), PM, architect, mechanical and electrical designer, contractor, building manager/fm team, and the sustainability advisor. This aftercare team will have the remit of driving the aftercare provision throughout the building lifecycle and focussing on aftercare issues from the outset. The frequency of dedicated meetings will increase as the project develops from design into construction, and handover into aftercare. Alternatively, aftercare may be an ongoing agenda item or it may be a combination of both approaches. 15

16 Lessons Learned Project teams should also draw out lessons learned from previous projects. The review of feedback from previous projects is a standard component of the RIBA Plan of Work 10 for the Strategic Definition of a project but often the full complement of design team members are not appointed at this stage, so a further review of lessons learned should be led by the PM during Stage 2, and again once the Principle Contractor is appointed. Where a review is being undertaken in support of aftercare the PM should seek to elicit: Experience of projects (regardless of type) where superior aftercare was provided; Processes, strategies or working practices that were beneficial; Procedures or resources that could be improved; Opportunities to improve the delivery of initial and extended aftercare; How the aftercare provision was monitored for success; The key lessons to be applied to the current project. The PM should reflect on lessons learned from previous projects, and apply those findings to the Aftercare Strategy in the form of an assessment of any risks, and recommendations for corrective measures. Findings may also necessitate updating the Project Brief. The lessons learned review by the project team may not just focus on aftercare, and it is encouraged that such a review of people s experience encompasses a variety of aspects relevant to the project type, including sustainability and the broad range of issues that fall within this. The case study by The Crown Estate emphasises the importance of both design team and asset management team s involvement in recording lessons learned, so that insights can be shared in a formal process to inform future project briefs. 16

17 Media lounge, The Crown Estate AFTERCARE GUIDE NOVEMBER 2017 The Aftercare Strategy To ensure that all stakeholders clearly understand the aftercare objectives, it is advisable to develop a project specific Aftercare Strategy ensuring everyone understands what is being asked for, and for use as a tracking document to capture aftercare actions throughout the project s lifetime to monitor progress. The Aftercare Strategy will be produced to suit the size, scale and complexity of the project but should include: Client Aftercare Brief and Objective(s) The Aftercare Strategy will set the brief for aftercare provision, stating the Client aspirations and desired outcomes that will drive the requirement for high quality and extended aftercare. This will be specific to the project. The brief for aftercare will include concise objective(s) setting out what the aftercare provisions need to deliver. The aftercare brief and objectives will be repeated or summarised within the Project Brief. Roles and Responsibilities This section of the Aftercare Strategy should clarify what is expected at each work stage from key design team disciplines that have a significant influence on aftercare. This will emphasise the expectation to adopt collaborative working, and consider aftercare requirements as a key element of the Project Brief. To inform this element of the Aftercare Strategy a responsibility matrix is provided (p.43-49), that can be modified according a project scope, scale and complexity. This section should also confirm who is driving the provision of aftercare (e.g. PM, or alternatively the architect or other), and what activities each stakeholder is expected to support such as contributing to lessons learned reviews and/or being part of an aftercare team, attending additional meetings (and how frequently throughout each work stage), or participating in reality checks and design for management reviews. There may be additional studies required or specialist input to support the aftercare process such as a review of operational energy performance using the CIBSE TM54 method, that may fall under the remit of the mechanical and electrical engineers or energy assessor. For speculative buildings where the building manager/fm team is not yet in place, specialist advice may be necessary and lead to an additional consultant appointment. Identifying roles and responsibilities will enable the 17

18 appropriate provisions within scopes of works and ensure aftercare is given the support required. The Aftercare Process Map, the Roles and Responsibility Matrix and the case studies provide a good basis to identify activities at each workstage that can be expanded with additional details and assigned to team members as part of their roles and responsibilities. Objectives and targets should be set to monitor building performance throughout various phases of the project. Targets will be important to evaluate the overall success of the aftercare provision. These are discussed in more detail below. Performance Targets The Client and project teams should set clear performance based targets and objectives that will inform design development and aftercare procedures. This Guide does not set targets, but recommends these are established by the developer in consultation with the project team. Objectives and targets should be set to monitor building performance throughout various phases of the project. Clients should consider the regulatory standards and planning obligations that will apply at practical completion, and where relevant these will be included in the performance targets against which the project can be evaluated post-handover, such as the EPC target rating. Many developers have their own corporate sustainability objectives and targets that apply to projects, and the industry is now seeing several organisations adopting science-based targets that in turn inform developments carbon reduction targets. Data arising from the aftercare process, including actual operational performance of energy and water, will be monitored against the targets to confirm the asset is performing as intended. Developers who do not have standard sustainability or environmental objectives and who are seeking to understand what sustainability and environmental performance standards would be appropriate to their developments should consider industry sources of guidance such as the Better Buildings Partnership s Sustainability Benchmarking Toolkit 12. CIBSE has produced the technical memorandum TM54 13 that provides guidance on estimating operational energy use more comprehensively at the design stage. A TM54 analysis will highlight areas where actual energy use may be higher than a typical building, allowing this to be considered at the design stage and opportunities to reduce operational energy to be embedded during developed design. Operational energy consumption estimates inform target setting and, in turn, once operational the actual energy consumption of the asset can be reviewed against the comparative target. This type of review during the extended aftercare period will flag up issues such as poor commissioning, poor management and extended hours of use, and facilitate fine tuning and corrective action. As discussed in the case study, CIBSE 54 analysis was undertaken for 4 Kingdom Street at design stage, updated during construction and the performance targets will be revisited during the extended aftercare period. CIBSE TM22 14 is a technical memorandum providing 18 4 Kingdom Street, British Land

19 guidance on assessing the energy performance of an occupied building based on metered energy use and may be beneficial for reviewing the operational performance of an asset in use. Building managers/fm teams and managing agents need to be briefed on their responsibilities for ongoing performance monitoring and management of building performance. Adequate provision may need to be made for accounting for building performance during void periods and to undertake seasonal commissioning. Targets for Post Occupancy Evaluation (POE) can be set part of the Aftercare Strategy that may incentivise design development by placing an emphasis on in-use performance. St James s Market case study provides an example of POE minimum performance targets for new developments. Targets can also include dates for draft and final copies of the operation and maintenance manuals produced during the construction stage, and targets around snagging and defects. Outputs and Actions The Aftercare Process Map identifies actions and outputs that will be key components of the Aftercare Strategy and can be modified to suit the project scope, scale and complexity. Critical outputs will be the commissioning strategy, commissioning programme, and training schedule. Aftercare Tracker The Aftercare Strategy may include a tracker to monitor actions, outcomes and progress. Aftercare Programme A handover and aftercare programme must be drafted to identify roles and responsibilities of the client team, the main contractor and sub-contractors, the level of aftercare provision during the initial weeks after practical completion, handover, and during the defects liability period, the requirements for seasonal commissioning, and extended aftercare provision and activities for the two to first three years of occupation. The Aftercare Strategy should require the provision of a policy statement or plan to clearly identify what is to be achieved by way of training and development of the building management/fm team. This will cover the BMS (BEMS) and any BIM strategy. Tendering and Budgeting Considerations Extended aftercare will ideally involve a two to threeyear period following building handover in which the performance of the building is tuned up. Seasonal demand, changing business plans and practices can have a material effect on building performance meaning taking a long-term view is helpful. Many of the problems that affect building performance are social as well as technical, and behaviour change can take some time to have an impact. A figure of 0.1 % of contract value represents a good starting point for consideration of budgeting when deploying aftercare. Some typical aftercare activities are set out in the table below (p.21). While many of these are post-occupancy activities and services, the reality is that consideration of their costs should be established as early as possible to inform realistic aftercare budgets. The costs may be relatively modest on larger projects, but on smaller projects and where margins are tighter, good budgeting will ensure ongoing commitment and consistency in the delivery of aftercare. Aftercare should be scoped and priced by consultants and contractors early in the process. Failure to do so may lead to consultants and designers pricing aftercare services on an ad-hoc basis during the construction process and not realising economies of scale. BSRIA recommends that a figure of 0.1 per cent of contract value 15 represents a good starting point for consideration of budgeting when deploying aftercare (this would typically involve the retention of a team following building handover). Building Manager/FM Team Training Policy Who does what in the aftercare process will depend 19

20 much on the developer s procurement strategy. A Client may wish to extend the appointment of key project team members to provide periodic input and review of performance through the extended aftercare period, ideally for the first two to three years of occupation. The challenge may arise with speculative buildings where these are not occupied for some time post-handover, and therefore not fully operational thus, impeding an effective review of operational performance. The Industry Service Charge Code 16 identifies that owners hoping to recoup the cost of aftercare processes may be constrained dependent upon the process in question. For example, installation of new kit with a similar performance profile as the existing kit it replaces would typically be deemed a tenant cost only in the event of non-performance of defect. However, in the case of aftercare, it may be that the installation of more efficient plant and/or equipment would be deemed an improvement and therefore, not ordinarily recoverable through the service charge. Similar treatment would likely be experienced with regard to consultancy (e.g. building use studies) that have tended to accompany aftercare and such costs are unlikely to be recoverable. investment value when considering aftercare processes. The concept of a building s value will have different meanings for the various stakeholders in the property sector. Buildings that are subject to aftercare realise lower operating costs for tenants, but management efficiencies should also reduce overheads for building managers and owners. High quality aftercare will lead to better day to day operation of the asset, its shared building services and common areas, and this in turn is anticipated to maintain better standards of internal health and comfort (e.g. through regular maintenance and servicing of ventilation plant and associated filters, reduced build-up of dust and mould, better thermal comfort etc), and occupant satisfaction. With energy efficiency standards becoming more important, an optimally-performing building will minimise the risk of sustainable obsolescence and the associated risk to value. Media lounge, The Crown Estate The Stage 1, 2, 3 and 4 outputs from the Aftercare Process Map may be used for tendering and contract purposes depending on the Procurement Strategy as influenced by the client s Risk Profile, time, cost and quality aspirations and how early contractor involvement and Specialist Subcontractor input is to be undertaken. Professional fees incurred in the normal course of managing and operating a building should be recoverable via the service charge. However, recovery of capital investment in the building will be conditional upon such concerns as whether or not the measures constitute an improvement or a replacement under the Service Charge Code, and what individual lease clauses say. Good practice would be to consider what the lease says at the outset, and use channels of communication set up by the aftercare process to invite dialogue on capital investment. If the premise of the economic case as set out in the earlier chapters is sustained, one might expect that such economic outlay is seen as contributing to preservation of the yield through increased lettability or marketability of the asset and therefore be seen in the context of a long-term asset strategy. Owners may wish to look beyond simply the 20

21 Outline of Costs for Aftercare Activities ACTIVITY COST RANGE SUPPORTING GUIDANCE Feedback with project team and client to inform client requirements, the design brief and sustainability targets Input from FM/building management team during design phase, or a specialist FM consultant where FM team not confirmed. Involvement of design team during extended aftercare period (1-3 years post PC) Variable Variable fees are dependent on the size of the project and client objectives. 5,000 Understanding of similar building performance. Dependent on clients existing corporate objectives. Dependent on scale of project - major developments may require specialist resource for sustainability support. Input into the aftercare brief, identify operational requirements to be considered during design to ensure efficient day to day operation of the asset, review designs for usability, inform commissioning and training provision; present on site during the lead up to handover to oversee commissioning and testing of building systems and help manage the interfaces between occupiers fit-out and clearance of any outstanding base-build works, and training of incoming tenants. Reality-checking process Contractor + Key Subcontractor(s) + Building Management team + Architect + Services Consultant = approximately 2K - 5K per session Undertake at least once at the end of developed design and again during technical design, and during construction (between 2 5 sessions). Opportunity for the project team to review the usability and manageability of equipment, product or material. More in depth than a traditional design review. CIBSE TM54 analysis 3,500 The asset class, and anticipated occupier density, hours of occupation will need to be understood for each end user scenario. Often up to three scenarios are modelled (low, medium and high energy usage). Building Use Studies 2,000 5,000 Building Use Studies (BUS) Partner who can undertake the BUS survey, plus graphical and statistical data for interrogation via web browser. Clerical time required for data entry into Excel prior to submission to the BUS Partner. Research and creation of energy model using CIBSE TM22 for energy reporting at 12, 24 and 36 months posthandover Aftercare meetings Variable 5K per meeting including Contractor Dependent on building complexity, but the cost of building the energy model may vary. Use of BIM at design stage, or creation of a detailed energy model will dramatically decrease this cost provided kept up to date as it can serve as the basis of the model.also part dependent on level of EMS & BMS Employers Requirement bought at contract. Costs are variable but likely to be higher when such meetings are stand alone. Design professionals may be negotiated down as insights may be beneficial for professional development. Contractor involvement may be best pursued separately. Post occupancy review report Could be included in FM Consultant fee. Standalone fee would be approximately 2,000 Understand how new facilities perform in relation to the original project objectives Operational audit report Could be included in FM Consultant fee. Standalone fee would be approximately 5,000 Identifies areas of contractual noncompliance and opportunities for improvement Service charge analysis Could be included in FM Consultant fee. Standalone fee would be approximately 5,000 Robust services charge calculations based on as built design Courtesy of GARDINER & THEOBALD LLP Table adapted from BSRIA Soft Landings with permission from BSRIA 21

22 Stage 2: Concept Design As the Concept Design contains outline proposals for structural design, services systems, site landscape, access, operational waste management, outline specifications and preliminary cost plans along with environmental and ecological strategies, it will be important to consider how these aspects of the building will be designed to facilitate efficient and cost-effective management and aftercare. In developments that plan to include an element of aftercare, this should be incorporated at design stage as failing to do so will likely lead to problems and further costs at a later stage, particularly if the cost plan and the outline specifications do not contain consideration of aftercare and ongoing maintenance. If an outline planning application is made at this stage, or a detailed planning application once the Concept Design is complete, this may cement certain design decisions that will be difficult to unpick. Therefore, before the end of Stage 2, the proposals should be reviewed by the property management/fm team and feedback with regards manageability, maintenance and servicing requirements incorporated or noted (e.g. in an Aftercare Tracker or similar), to be addressed during developed design. Consideration of the Better Buildings Partnership guidance Fit-Out For The Future is appropriate at this stage to ensure the base built design complements the potential for a sustainable fit out, and to inform the Aftercare Strategy. 22

23 Bluewater ventilation, Landsec 23

24 Stage 3: Developed Design Aftercare requirements will be dictated by design selections at this stage and it is important to present the aftercare strategy objectives and targets as early possible so the design team can respond with the appropriately designed solution. For commercial office buildings, this will be the stage when the first iteration of a CIBSE TM54 study is carried out and the results should inform the developed design. The sustainability certification assessment is also progressed at this stage and should align with the energy and metering strategy, commissioning and aftercare provision. It is important to determine how property management (and any advisors) will monitor the building s performance and, exercise corrective action as this will inform provision of infrastructure for the purpose. The following are available for such processes: Building Energy Management Systems: building energy management systems (BEMS) are computerbased systems that are often an integral part of a wider building management system (BMS). A key method for monitoring the mechanical and electrical equipment such as heating, ventilation and air conditioning (HVAC), lighting, power systems and emergency systems. These systems collect energy data and assist with legislative compliance such as Energy Savings Opportunity Scheme (ESOS) 17. It is important that end users such as the building manager/fm team are trained to operate these systems effectively and maintain the BEMS correctly, to optimise potential energy savings, occupant comfort and wellbeing. The BRE, CIBSE and BSRIA provide best practice guidance on energy management, auditing and controls. Metering Strategies: methodologies for minimum placement of meters and sub-meters are covered under Part L of the Building Regulations 18 and CIBSE Guide TM39 19 on Building Energy Metering. CIBSE TM39 does not provide detailed guidance on smart metering. Further incentives for better metering are provided under the CRC Energy Efficiency Scheme (CRCEES), Heat Networks (Metering and Billing) Regulations 2014 and Energy Savings Opportunity Scheme (ESOS), since automated energy monitoring can help to facilitate compliance through suitable levels of data hygiene. At this point, it should be possible to start preparing design stage asset registers, restricted to type and anticipated capacity. These asset registers should be maintained throughout the construction process and updated by the building management/fm team concurrently with the project team as matters develop. If the Client has opted to appoint the contractor to complete an operational risk register to highlight risks to achievement of targets, it may be possible to include known unknowns within the register to provide a means for review. 4 Kingdom Street, British Land 24

25 New Ludgate, Landsec Developers will need to consider from the outset how aftercare will fit within their procurement strategy and work with their consultant team to embed the requirements appropriately into the tender documents to ensure that the appointments and activities of consultants and contractors are managed appropriately for the given procurement route. It is vital to clearly set out the expectation of collaboration within tender documents, as well as the requirements of initial and extended aftercare, and to include in the evaluation process the contractor s experience and response to understanding the requirements. During the developed design stage, access for maintenance of the proposed building services installations must be considered in the preparation of coordinated and updated design proposals. Reality-checking (also referred to as pit stopping under Soft Landing 15 ) at this stage is recommended as it provides the opportunity for the project team, including the building manager/fm team, to review the usability and manageability of equipment, product or material. Reality-checking may take place at the end of developed design, and is intended to go beyond the traditional design review, and continue periodically throughout technical design and construction. It aims to ensure the performance objectives and end users operational requirements will be met by the design as simply as possible. A contributing factor to the performance gap can arise from overly- complicated systems and controls that are then not operated correctly, and reality-checking provides the opportunity to avoid this. 25

26 Stage 4: Technical Design It will be during the end of the developed design and during technical design when the realitychecking process will kick in, focussing on specific elements of the proposed building services equipment, systems and controls. Performance-specified products can be reviewed for their appropriateness to achieve the performance objectives and operational outcomes. Take metering as an example, a reality-checking meeting may focus on the proposed energy metering solution to review the metering extent, complexity, associated equipment, and end user interface. This will provide an opportunity to confirm whether the developed design meets the metering and data requirements set for the asset, and the equipment aligns with the FM strategy for the asset. The procurement strategy and aftercare will also form a key part of the reality-checking discussions at this stage. Any refinement of the proposals can then be undertaken and specifications confirmed before going out to tender. A strategic handover and aftercare programme identifying the level of provision is beneficial. At this stage, the requirements for aftercare provision including training and handover, provision of high quality building documents such as the operations and maintenance manual, and seasonal commissioning must be detailed within tender documentation for the main contractor in addition to pre-completion testing and commissioning requirements. A strategic handover and aftercare programme identifying the level of provision is beneficial. St James s Market, The Crown Estate If a pre-letting agreement is in place, consultation with the future tenant/occupier and their advisors will be necessary in order to understand their future requirements. Initial access for maintenance considerations must be developed into a detailed access for maintenance review during the technical design stage to ensure that the building services plant and equipment can be maintained, serviced, repaired or replaced when the building is in use. This must include a review of any specialist access equipment required. To define aftercare needs, consideration at this stage should be given to the management strategy, the requirements of the leasing team, and how the building operates during fitting out and ultimately service delivery to tenants. This will involve the FM team and/or the managing agent. 26

27 Stage 5: Construction The Construction phase will typically witness the deployment of the Aftercare Strategy including agreement of information required for commissioning, training, handover, asset management, future monitoring and maintenance and ongoing compilation of as constructed information. The Construction phase will also see final implementation of a metering strategy for the building to encompass appropriate sub-metering and special uses. Key aspects to ensure high quality aftercare include: A pre-agreed and carefully defined scope and performance criteria (as outlined on p.18). This performance criteria may need to be revisited to reflect agreed changes to construction; Operation and maintenance manuals; A commissioning strategy; A detailed handover and aftercare programme; Training. The building manager/fm team should be on site regularly during this phase to get an in-depth understanding of the buildings construction. The building manager/fm team should be provided with a base onsite to enable effective working. If there is a change in personnel in the role of building or facilities manager, then a detailed handover should take place to ensure the in-depth knowledge of the design and construction is transferred in support of the aftercare provision. Fully detailed operation and maintenance documentation must be provided to cover all elements of the new installations. The format of the operation and maintenance manuals and quality of information provided must be agreed with the building manager/fm team during the construction stage with draft copies produced well in advance of practical completion. Operation and maintenance documentation must include as built drawings based on the final architectural and space layout drawings and the final installation arrangements. The documentation should clearly identify the equipment and materials installed and provide full details of methods of operation, faultfinding procedures, routine maintenance procedures and repair procedures. It should also detail the spares and consumables necessary to maintain and operate the building and its associated services systems, together with details of suppliers and manufacturers. If there is a change in personnel in the role of building or facilities manager, then a detailed handover should take place to ensure the in-depth knowledge of the design and construction is transferred in support of the aftercare provision. Copies of design specifications should be included within the operation and maintenance documentation to confirm design criteria, exact scope of works, particular requirements etc. The final issue operation and maintenance manuals must include all test and commissioning records. The building services commissioning results must be witnessed by the mechanical and electrical consultant and signed off to confirm that they are within an acceptable tolerance of the system design. Commissioning must ensure the performance data can be being picked up correctly and monitored at a head end interface, such as the Building Energy Management System. To enable effective aftercare, it is vital that the building s operation/performance is checked and properly documented, against which aftercare objectives can be implemented. 27

28 The handover and aftercare programme must be formalised and implemented. This should confirm the roles and responsibilities of the main contractor and sub-contractors, the client team, the level of aftercare provision during the initial weeks after practical completion, handover, and during the defects liability period, the requirements for seasonal commissioning, and extended aftercare provision for the two to first three years of occupation. The timing and format of training needs to be agreed and a training and handover programme provided well in advance of practical completion. Timing of training to end users is critical, as administering this too early means it may need to be repeated. Training must be provided to building managers and their respective FM teams, tenants representatives and maintenance and other relevant contractors in support of performance monitoring, and to facilitate corrective action and fine tuning as part of ongoing management. Training is particularly important for demonstration of the BMS/BEMS interface and complex installations such as low carbon and renewable energy systems. The benefits and use of the BIM information to the managing agent, building manager/fm team should be part of the training provision and aftercare strategy. The procurement of maintenance contracts will be agreed, confirming which contracts will be procured by the main contractor and the asset management team. Timing of training to end users is critical, as administering this too early means it may need to be repeated. As the construction phase concludes, the managing agent will generally complete a mobilisation process from the time when the building can be put to its intended use. This will continue through the marketing and building defect rectification period into fitting out and occupation. Liaison with energy suppliers will be required to ensure appropriate meters and metering agreements are in place. 4 Kingdom Street, British Land 28

29 Stage 6: Initial Aftercare Handover and Close Out Once the building or refurbishment is practically complete and can be put to its intended use, the aftercare aspects that must be considered are detailed below. Appointment of Lettings Agents and Marketing The decision on which letting agent to appoint will require careful consideration. The letting agent should demonstrate an understanding of sustainability and, most importantly, how to explain a building s sustainable features (if installed) and services systems and how they affect and benefit a potential occupier. Marketing materials produced for advertising purposes should make clear the values and sustainability credentials, design intent and building services strategy of the property and the vacant areas. They should, where possible, relate to recognised standards and benchmarks and the associated benefits that are expected to be delivered. A good example is the Smooth Moves at 4 Kingdom Street by British Land, where the application of initial and extended aftercare was used as a unique selling point in marketing material promoting the building 20. Potential Tenants and Occupiers If a pre-letting agreement is not in place and a building has been speculatively constructed or refurbished, the tenant(s) may not be known until after handover. In such instances, meetings between the landlord s representatives and the potential incoming tenant(s) and their advisors will be important to understand the tenant s expectations of the space and if these can be met before fit out and occupation works commence. The incoming tenant must undertake the required technical due diligence in order to determine that the building and associated services meet with their bespoke requirements. A site visit and building walk around is essential. This technical due diligence process will require the operation and maintenance documentation identified within Stage 5 to be available for review. The landlord should take the opportunity to showcase aspects of the property that may not be within the tenant s primary brief but that, once explained, may be of interest and help to further the occupier s objectives in their use of the space. The initial conversation should lead to informed discussions around heads of terms. Heads of Terms Once leasing negotiations have commenced and Heads of Terms are in the process of being agreed, the landlord s key concerns should focus on measures that: Protect the building s performance with regard to regulatory exposure e.g. Minimum Energy Efficiency Standards (MEES), which may affect the ability of both the owner and the occupier to trade their interest in the asset; Include any commitments by the Client to the tenant in terms of building management (e.g. supporting the tenant in their fit-out, planned preventative maintenance requirements etc); Include any obligations by the tenant to the property owner (e.g. maintaining the design performance and capacity, or meeting a minimum performance rating in their fit-out in order to preserve a building rating). 29

30 It should be underscored that such provisions are unlikely to be successfully adopted without dialogue and agreement before leasing negotiations begin. Planned Preventative Maintenance and Servicing Planned preventative maintenance is an important consideration from the moment that construction works are completed. The tendering and implementation of fabric and building services maintenance and cleaning contracts are essential for a number of reasons. These include: Ensuring that the property and associated fabric and services systems have been subject to maintenance in line with manufacturers recommendations, British Standards, relevant guidance documentation and industry recommendations; Achieving statutory, health and safety, legislative etc compliance; Ensuring that the longest period of manufacturers warranties is provided; Ensuring that the plant is operated in line with design parameters (set points etc); Maximising plant and fabric installation longevity; Ensuring occupant wellbeing, e.g. indoor air quality and thermal comfort can influence this. Careful consideration must be given to the services installations and fabric elements which the landlord is responsible for and those which the tenant(s) are responsible for. Separate contracts must be awarded accordingly. Maintenance contractor(s) should be subject to ongoing monitoring and auditing to ensure the contract requirements are being achieved. A technical advisor should also be appointed (if skills are not present in house) to ensure that no works affect/alter the building design strategy. The maintenance regime must include also consider requirements that are not addressed on a cyclical basis (for example TM 44 Air Conditioning Inspection reports). Tenant s Fit Out Works A fit-out guide, which is often produced by the asset management team, should be issued to a tenant and their fit-out team, on behalf of the landlord. This will provide confirmation on items such as base build provisions and documentation available, design criteria, landlords and tenants responsibilities, sustainable fit out requirements, conditions of approval, nominated contractors etc. 30

31 The tenant s fit out proposals must be reviewed and approved by the Client s technical advisors as part of the License to Alter process to ensure that the base build fabric and services are not compromised and that the works are in keeping with the original design strategy. Any alterations to the base-build/landlord s installations which are undertaken during tenant fit out works must be captured in an updated set of operation and maintenance manuals to clearly identify what changes have been made. The above are required to ensure that the aftercare processes implemented during construction are not compromised and also that building records are updated to enable effective ongoing aftercare. Accurate building documentation allows the scope of any future reinstatement works as part of a dilapidations claim to be clearly identified. Training FM Staff and Non-FM Staff A commitment to providing and undertaking ongoing training (following handover) is essential for the implementation and ongoing application of aftercare. This will ensure that those making decisions with regards to the building and its systems are suitably qualified and competent. The Aftercare Strategy should incorporate a training policy statement or training plan to clearly identify what is to be achieved by way of training and development. This must identify the technical, health and safety, quality and performance standards relevant to sustaining building aftercare and manage, operate and maintain the building economically and effectively. Those responsible for providing aftercare must obtain and develop the appropriate managerial and technical competencies. For successful management to occur, the factors that contributed to the original strategy must be understood. These include (but are not limited to) design concept, construction method, services installations, environmental and social issues, tenant s business processes etc. Occupant training on environmental controls should be provided, which include an overview of the building/fit out project and the design intent, the methods of control during each season and the importance of occupant control strategies. Clients should consider carefully the extent to which they will be willing to entrust the control of the BMS to the tenant or whether they would wish to retain control and manage the system. 7 Air Street, The Crown Estate Training provision must be constantly evaluated in order to understand its effectiveness and tailor future requirements. 31

32 Key Issues for Landlords The landlord should identify individuals to act as the contact point and coordinating influence for aftercare. Ideally this will be the onsite building manager/fm team that have been integral to the design and construction process. The individual should be in place immediately following practical completion in order to ensure that the building operates in accordance with its intended performance. If tenants are not responsible for their own energy supplies, the landlord will need to address the following questions: Is it clear what lies within landlord services and common parts and what lies outside them in terms of energy use? Who is in control of each form of energy supplied to the building? What energy usage is currently included in the service charge and how are charges for energy use allocated? Do the leases allow the landlord to recover the cost of improvements from the tenant? If not, the landlord needs to determine how such costs should be approached Is there reliable data on occupation and floor areas for demised areas? Such information will be very important for assessing whether performance is within acceptable ranges What metering is in place or what energy data collection and exchange routines are in place? Are there good metering commissioning and meter reading routines in place? Are tenants aware of the principle of aftercare and the benefits that may be afforded to them in participating? Has their participation been brokered? Is there service charge transparency between the landlord and the tenant that alerts tenants to the potential increase or decrease of charges relating to energy use? Landlords should also seek to understand aspects of their tenants businesses that might affect the tenants energy consumption. These can include: How many occupants are there in the demised areas of the building (occupant density)? What are the main weekday occupancy hours? Is the space used on weekends/saturday only/ Sunday only? In offices, for example, what percentage of floor area is used for dealing rooms, call centres, data centres/server rooms/storage? Is there catering provided on site and if so what is the ratio of hot meals to staff members? Are there any additional uses that might affect energy use? Are any spaces likely to become void/become occupied? Although it may be a challenge to collect and interpret such information, these factors, as well as changes in the landlord s own operations and within common service provisions (such as air conditioning hours), will influence emissions associated with a building. Clients should collate fuel bills for which they are responsible to establish total energy supplies and associated carbon dioxide emissions. 32

33 Landlords may wish to make use of the following information and tools when assessing aftercare energy considerations: Energy bills and meter readings; Energy audits (whether investment grade or under the Energy Savings Opportunity Scheme ); Service agreements from energy services companies; Display Energy Certificates, (including any background data used to create this); Collated landlord energy statements and tenant energy reviews; Building performance reviews; Carbon Trust audits; Energy performance certificates alone will not provide an accurate measure of a building s energy use, since they focus only on certain fixed services and make certain assumptions about hours of operation, intensity of use and so forth. 7 Air Street, The Crown Estate Once the building is substantially occupied and a minimum of 12 months of energy data has been gathered, the landlord should engage in seasonal commissioning, according to the principles set out in BREEAM. This involved testing both complex and simple buildings systems under part and full load conditions, undertaking interviews with occupiers, and recommissioning or fine-tune systems to ensure these are optimised. The client team should carefully consider and manage how defects are addressed as part of the de-snagging process during the rectification period, and this should be monitored against any set performance targets. The implementation of a planned replacement programme should be incorporated within the building aftercare strategy to ensure economic and reliable operation of building components and plant items. Key Issues for Tenants If a tenant currently pays a service charge and the landlord proposes to charge a part of the cost of aftercare to it, the tenant may wish to take legal advice to understand the full implications before signing the lease. The landlord s interpretation of reasonable grounds for withholding consent to sub-letting, assignments and alterations may in future take account of any adverse impact on carbon emissions. Tenants will need to assess the implications of any additional hurdles and consider whether agreement can be reached on this at the same time as any variations to the lease are discussed to accommodate costs and duties of aftercare. Unlike tenants, who have to satisfy conditions to be able to sub-let or assign their leases, landlords do not need any consent from their tenants in order to sell a property. This means that for the purposes of aftercare, the landlord should schedule a close out meeting with tenants on transaction. New landlords taking over the building should schedule an inception meeting to take stock and set out any potential changes to approach to be taken. 33

34 Stage 7: Extended Aftercare in Use Transaction One of the key issues to be negotiated in providing aftercare in speculative developments is what should happen when a property is transacted. The Client should consider whether it is under any legal obligation to provide support for aftercare until the point that the transaction is concluded. Softer obligations may apply, such as a memorandum of understanding between the owner and the occupier on sustainability matters. After the transaction is concluded, there may also be reputational benefits when a vendor collaborates with the purchaser or occupier by providing continuity during the transition period from one party to another. When disposing of an asset, developers will want to ensure that aftercare appointments and obligations are transferrable (either by assignment or third party rights). Continued poor aftercare process can lead the building and associated services installations falling into disrepair with premature failure of plant and components. Insufficient maintenance and servicing practises may result in system issues that are costly to repair/rectify. This may affect the value of an asset upon disposal. In all cases where aftercare is provided (whether a property is transacted, or the Client maintains ownership and is therefore a landlord), the occupiers should be provided with the following information: Metering maps; Energy use/audits data; Overview of BMS; Maintenance schedules; Commissioning records; Occupier/building user guide; Records of building management committee meetings and any informal agreements with the tenant; Copies of service agreements. When assessing future acquisition and disposal strategies, landlords should consider aftercare processes and whether these have been, or will require to be, implemented as this can be factored into the due diligence process. 34

35 Reviewing the Outcomes of a completed Project and in-use Feedback Using feedback to review the outcomes of a completed project helps clients, PMs and design and building teams to learn from what they have done, and plan to do better next time. The results and lessons learned can then be disseminated to their organisations, their peers and to the industry and its clients as a whole. Common hindsight activities used to identify aftercare interventions include: Post Occupancy Evaluation (POE): examination of the product and its performance. POE may concern a wide range of issues, either individually or in combination. Historically, however, their roots are in studies of architectural design, technical performance, indoor climate, occupant satisfaction and environmental impact. While they can be undertaken at any time, POEs most commonly occur within two years of handover. CIBSE TM54: updated with actual occupant density and working patterns, a review of the in-use energy data will be undertaken against the design estimates to improve understanding of operational energy performance, and inform potential fine tuning. Post-Project Reviews: review the conduct of a project: how it was set up, how well it went, how people and organisations interacted, how problems were dealt with, and how well it kept to programme and budget. Post project reviews need to occur relatively quickly after handover (typically within a first year) when team members may still be available and memories fresh. Post-Implementation Reviews (PIRs): These look back after the facility has been in use for some years and review the extent to which it has met its aspirations and delivered the anticipated business benefits to the organisation. To assist in this assessment, a PIR will often bring in findings from POE and other sources. Landsec 35

36 Conclusion This Guide has provided a summary of who should be involved in the provision of aftercare, early stage considerations, and key outputs that will enable optimal building performance in use. It aims to support a more consistent approach to aftercare provision across the industry, and highlights best practice guidance and complementary processes. We hope this Guide will deliver better buildings, and happy, healthy occupants. Westquay Watermark, Hammerson 36

37 Appendix A: St James s Market Case Study Title of Project Address/Location Client Building Type End Users Portfolio-wide approach to Aftercare and Post Occupancy Evaluation Central London portfolio The Crown Estate Commercial Offices, Retail and Residential Speculative Project Description Adopting a portfolio-wide approach for the handover, aftercare and post occupancy evaluation across all of our developments. This approach is outlined within The Crown Estate s Soft Landings manual and the Development Sustainability Principles. Summary of the Aftercare Brief Aftercare requirements comprise the following: Leasing: Preparing a tenant fit-out guide and ensuring that tenant leases incorporate all necessary requirements of the Soft Landings Process; Tenant fit-out: management of tenant fit-out design review and License to Alter; Updating O&M manual and BIM Model: Alignment of asset information requirements documentation for developments to meet Managing Agent s needs for ongoing operation and maintenance; Training: Undertaking operational team training (building managers and facilities managers); Aftercare: Contractor enhanced presence for initial aftercare; Post fit-out commissioning and witnessing, and a move towards continuous commissioning using systems analytics for initial validation of system performance and ongoing fine-tuning; Lessons Learned workshop and summary workshop; Post Occupancy Evaluation: comprising a user survey and building performance review. Aftercare Duration Up to three years following occupation. St James s Market, The Crown Estate Operational Building Performance undertaken or planned As outlined in The Crown Estate s Development Sustainability Principles at design stage, the design team are required to provide operational design estimates for water and energy. Water and energy building performance analysis is then undertaken across all newly completed schemes, with targets set for how buildings should perform in relation to these design estimates at one, two and three years post-occupation (i.e. once buildings are at least 80% occupied). 37

38 Post Occupant Evaluation undertaken or planned Within The Crown Estate s Development Sustainability Principles, there is a requirements for Post Occupancy Evaluation to be undertaken as standard across all newly completed schemes and achieve, as a minimum, above the 50% percentile. The evaluation must comprise building performance reviews and audits (focused on energy and particularly BMS, where installed), in addition to occupant satisfaction surveys (using the BUS survey). Post Occupancy Evaluations are undertaken once a building has been 80% occupied for a period of at least one year. The Aftercare Team: a Summary of their Roles and Responsibilities The Crown Estate Development Team and Asset Management Team: Understand aftercare requirements and ensure the external design team, and managing agents, undertake these aftercare requirements. Project Manager: Manage and co-ordinate the design team as they advise the client on any technical requirements and the information for Soft Landings to be included in any Agreements for Lease; Manage and co-ordinate the design team on the review, comment and inspection of the incoming tenant s detailed design for tenant works against the provision of the base building works. Principal Contractor: Issue packages of information to Managing Agents, as outlined in the FM Mobilisation Plan for the procurement of the required maintenance contracts; Provide a detailed systems demonstration and operator training (including video training) for the building management personnel prior to Practical Completion; To be available to carry out end user training, familiarisation and technical support after Practical Completion. Design Team (Architect, M&E Engineer, Cost consultant): Develop and deliver strategic and functional training to building management in accordance with the Training and Handover Plan; To review, comment and inspect the tenants detailed design and completed work against the License to Alter; Assist the Managing Agent to update the operating and maintenance manuals for Base Build Works and deliver any briefing of tenants. Managing Agents: Procure maintenance contractors for all relevant systems; Set out the FM Mobilisation Plan and recruit the building manager and technical manager; Manage the timing and logistics of tenant access to the building to enable fit-out contractors to complete works without impact upon the operation of the building; Incorporate the operation and maintenance information provided by the tenant into the building s operation and maintenance manuals; Lead the face-to-face briefing of the tenant on the key features of the building and its operation; Update the O&M manuals and BIM model for the base building works to reflect any changes arising from approved alterations by the tenant. Post-Occupancy Evaluation Consultant: Undertake the post occupancy evaluation (including occupant satisfaction surveys) at one, two and three years following one year occupation. Key Beneficial Outcomes Putting the customer (i.e. the tenant) at the heart of how buildings are designed, handed over and managed; Adopting a consistent approach to aftercare will ensure a consistent quality of building hand over and management; Adopting a consistent methodology for design estimates (for energy and water), as well as postoccupancy evaluation, particularly using the BUS methodology, allows buildings to be compared across the portfolio, as well as against established industry benchmarks; Sharing lessons learnt will enhance customer satisfaction and lead to greater building efficiency with respect to water and energy. Key Lessons Learnt The importance of establishing a strategic portfoliowide approach to the adoption of Soft Landings principles, including aftercare requirements; 38

39 The importance of setting out roles and responsibilities in advance, and ensuring that these are embedded and outlined within the design team scope of works, the main contractors employer s requirements and managing agents service level agreements; Ensuring that both design team and asset management (asset managers and managing agents) are involved in recording lessons learned and that there is a process for the outcomes to be fed into the briefing process for future projects; To secure buy-in from both Development and Asset Management teams of the Soft Landings process; The need to clearly establish the requirements for tenants, and contractors managing tenant fit-out, to ensure that this does not impact upon the base build. St James s Market, The Crown Estate 39

40 Appendix B: 4 Kingdom Street Case Study Title of Project Address/Location Client Building Type End Users Cap Ex % of cap ex for delivery of the aftercare 4 Kingdom Street 4 Kingdom Street, Paddington Central, London British Land 147,000 sq ft of commercial office space across 9 floors with two retail units on the ground floor Speculative with over 89% let or under offer (as of June 2017) (almost 80% under offer on the office space within a week of completion in April 2017) ~ 80m ~0.4% 4 Kingdom Street, British Land Project Description Sustainable placemaking, wellbeing and efficiency is at the heart of 4 Kingdom Street and the Paddington Central Campus. 4 Kingdom Street is designed to accommodate the latest working trends, with private corner terraces and a roof terrace for access to plenty of outside space to enhance the wellbeing of its occupants. The design and construction has also achieved BREEAM Excellent. Practical completion was achieved in April 2017 and the building is currently undergoing tenant fit out. Summary of the Aftercare Brief The brief for 4 Kingdom Street was to identify opportunities to make the handover for occupiers moving into new buildings even smoother. The early results are promising and British Land will be taking lessons onto other projects, creating Places People Prefer. Key to the delivery was appointing an aftercare champion whose focus was on making the building work well for occupiers, whether checking that cost efficiency changes will not affect the end-user experience or flagging changes in potential occupiers needs as the project progresses. This input can be particularly beneficial on speculative schemes, where occupiers are not there to provide their views until later. Aftercare Duration This was a pilot for British Land and Soft Landings was not originally part of the Brief and in this case, the formalised and detailed approach to high quality aftercare provision commenced late Stage 3. Aftercare provision will extend for at least two years from handover. 40

41 Operational Building Performance undertaken or planned The aftercare team will carry out post occupancy evaluations including a final CIBSE TM54 analysis using actual building performance data, which will be shared with the design team, main contractor and project team. Insights from occupier surveys and building operation will help finetune for optimal performance and occupant comfort, and it is likely that this information, anticipated during 2018, will inform what happens on future projects, helping deliver better buildings. The Aftercare Team: a Summary of their Roles and Responsibilities The Project Management team, M3 Consulting, provided aftercare and led the coordination process with the support of the Sustainability Coordinators, TFT LLP. M3 and TFT produced the initial plan that identified additional support and timescales and resourcing for aftercare provision. M3 chaired the regular aftercare meetings and updated the aftercare tracker that identifies actions and outputs, which is still being maintained during the extended aftercare period. At the time of writing M3 are overseeing the remaining tenant design approval up to Licence for Alteration with Paddington Central managing the building and supporting the tenant fit out process. Wates Construction are the main contractor for the design and build contract and a key member of the team. Wates are responsible for the delivery and coordination of commissioning and seasonal commissioning, training, production of the O&M manuals and other base build documents, closing out defects, providing onsite support during the initial aftercare phase, and continual aftercare off site support thereafter. Broadgate Estates provides estate and building management services to the campus including 4 Kingdom Street. A building manager was appointed during the design phase and is a core member of the aftercare team. The role of the building manager is critical to the aftercare provision, providing continuity between the design and operation of the building. The building manager is responsible for working alongside the design and construction team, providing feedback on the operation and maintenance of the designs proposals and design for management reviews; feedback on the content of the aftercare training, and on the content of the O&M, Fit Out Guides and other technical documents; being present on site during the construction phase, and setting up on site permanently on the lead up to handover to ensure an in depth understanding of the buildings construction, layout and operation; review of the commissioning records; and coordinate colleagues who should attend aftercare training. The building manager with support from CML (see below) continues to manage the testing of building systems and helps manage the interfaces between occupiers fit-out and clearance of any outstanding base-build works, and training of incoming tenants. Paddington Central have also authored the Building User Guide for incoming occupier s staff to explain details of the building and the Estate. WSP are the design stage M&E and LZC consultants and their appointment has been extended to provide oversight of the construction and aftercare process. In this aftercare role their principle responsibility is to update the CIBSE TM54 analysis during construction and one year post occupation (the initial analysis was undertaken at design stage and revised) to confirm the building is operating according to the energy efficient design intent, taking into account actual occupant density and operating hours. Commissioning Management Limited (CML) are appointed to validate tenant services prior to connecting to the Landlord s base building systems. Their initial role consisted of the Base build Verification Engineer. In this instance, this service is provided by the Landlord, but ordinarily this would be shared between Occupier and Landlord. TFT are the sustainability coordinators for the project who supported the initial set up of the aftercare provision in collaboration with M3. Their role has been to identify opportunities where aftercare provision complements approach to sustainability such as occupant wellbeing and satisfaction, sustainable travel, tenant fit out and certification under BREEAM. The sustainability coordinator has fed into the production of Fit Out Guides and supports on the coordination of post occupant aftercare activities such as post occupant evaluation, and the provision of sustainable travel support for incoming tenants at Paddington Central. Current Beneficial Outcomes Timely production of letting documents; Continuity of cross party communication on a regular basis; The ongoing operational energy performance review of the building. 41

42 Current Lessons Learnt Early confirmation and adoption of Client aftercare brief to inform roles and responsibilities form the outset; A change of personnel in the building manager role necessitates comprehensive handover of building knowledge and understanding to ensure continuity and quality of aftercare. 4 Kingdom Street, British Land