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Optimising Cost Reduction, Delivering the Best Future Estate

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Optimising Cost Reduction, Delivering the Best Future Estate Provision of Property Services to the Government Property Unit Mini-Competition Response 12 August 2011 Optimising cost reduction, delivering the best future estate London & Bristol Property Vehicle Pilot 10 January 2011 Mr P Mayes Government Property Unit Department for Business, Innovation & Skills 1 Victoria Street London SW1H 0ET. by e-mail: [email protected] London, 12th August 2011 Dear Paul, Provision of Property Services to the Government Property Unit Thank you for your brief. I am pleased to say that we can offer in response a service which plays to some of our particular strengths. We have assembled dedicated regional account teams to give you the advice and market presence you need to help transform the government estate. We are using senior skilled professionals to identify, create, and seize early and sustainable savings and value opportunities, and to give you the strategic insight required to deliver the right future estate for efficient government operations. You need best in class advice in each region. We provide this via full service offices including those in each of your priority cities. Because these are run along national service lines, not by geography, best practice, skilled resource, and market information are shared between them, to your advantage in both sharper advice and implementation. We capture in our team the insights form our current instructions with you, and offer fifteen specific efficiencies which will help us quickly mobilise and give you rapid, effective and consistent advice. Our culture is built on teamwork and collaboration which we are convinced delivers you the best results, and will be essential on a multidisciplinary task such as this. This proposal shows that we have the market strength to be appointed in each of your five regions, and the strategic capacity to serve you efficiently and effectively throughout. I hope this document provides all the information you require; please do not hesitate to contact me in the first instance for any additional details. Yours sincerely, Paul Spencer Jones Lang LaSalle [email protected] Office agency team of the year 2011 Investment agency team of the year 2011 COPYRIGHT © JONES LANG LASALLE IP, INC. 2011. All Rights Reserved 1 London & Bristol Property Vehicle Pilot 10 January 2011 Contents Executive Summary.......................................................................................................................................................... 4 Section A: Qualities and resources 1 Question 1: our understanding of the brief....................................................................................................... 6 1.1 (i) support the GPU in the categorisation of the Regional Estates as CORE or SURPLUS .................................. 6 1.2 (ii) space utilisation and planning assessments to show current and achievable capacity for all CORE holdings and how this could be delivered. .......................................................................................................................... 7 1.3 (iii) advice on options for accelerated lease exits for all SURPLUS holdings, and feasible scenarios for estate rationalisation moves and chains of moves.............................................................................................................. 7 1.4 (iv) agency advice on mitigating the cost of, or disposing of, surplus property including mitig ation of dilapidations liabilities;......................................................................................................................................................... 8 1.5 (v) town planning advice on major refurbishments, listing issues, disposal potential, and re‐development opportunities; ...................................................................................................................................................................... 8 1.6 (vi) valuation and appraisal advice as necessary including site specific development opportunities;.................... 9 1.7 (vii) support for the GPU in producing a robust plan and Business Case for consolidating the estate;................. 9 1.8 (viii) supporting implementation via agency roles for acquisition/disposal, refurbishment, or other inputs as necessary..................................................................................................................................................................... 10 1.9 (ix) other property advice as specified from time to time by GPU........................................................................ 10 2 Know-How and Credentials .............................................................................................................................. 11 2.1 Credentials and know how region by region........................................................................................................ 13 3 Project Timeline................................................................................................................................................. 34 Section B – Personnel 4 Personnel ........................................................................................................................................................... 37 4.1 Structure.............................................................................................................................................................. 37 4.2 Project Team ....................................................................................................................................................... 37 4.3 Regional Project Teams ...................................................................................................................................... 40 5 Main Points of Contact...................................................................................................................................... 58 6 Organogram....................................................................................................................................................... 59 6.1 Team Structure.................................................................................................................................................... 60 6.2 Team Levels of Seniority..................................................................................................................................... 61 7 Allocation of Tasks............................................................................................................................................ 62 Section C – Charging 8 Hourly Charging Rates...................................................................................................................................... 64 8.1 Expenses and VAT.............................................................................................................................................. 64 8.2 Fee Rate Schedule.............................................................................................................................................. 64 8.3 Capital Sales and Acquisitions – Agency Fees ................................................................................................... 64 8.4 Leasing – Agency Fees....................................................................................................................................... 65 8.5 Site Specific Studies............................................................................................................................................ 65 8.6 Pricing for projects............................................................................................................................................... 65 8.7 Accounting arrangements.................................................................................................................................... 65 9 Additional Volume Based Percentage Discounts........................................................................................... 66 10 Pricing by outputs / project requirements ...................................................................................................... 67 Appendix A: Conflicts of Interest COPYRIGHT © JONES LANG LASALLE IP, INC. 2011. All Rights Reserved 2 London & Bristol Property Vehicle Pilot 10 January 2011 “… a very fine service, everything I ever wanted has been provided” Deutsche Bank – John McGiver “... a massive thanks for the refurb. It has transformed the place - not just physically, but helped lift the atmosphere and strengthen all the engagement and cultural work Kevin has been leading. You can literally hear the difference. I never thought the word "funky" would be used in the same sentence as Hattersley - but it can be now. Operationally, the work was also done with minimal disruption, which at a time of huge operational change is also great credit to you and the contractors” British Gas – Ian Peters COPYRIGHT © JONES LANG LASALLE IP, INC. 2011. All Rights Reserved 3 London & Bristol Property Vehicle Pilot 10 January 2011 Executive Summary You require locally based, market sharp advice and action to help you transform the government estate in each region. The outputs you seek are accelerated and optimised cost reductions and receipts, and the right future estate for government business. Our response serves you via our full range of national service lines, delivered through our office network located in each of your priority cities. We use dedicated regional
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