Intelligent Utilisation of Estate Steven Boyd MBE CEng

Intelligent Utilisation of Estate Steven Boyd MBE CEng FICE FIMech. E Director Estates HMRC

Agenda • • • Locations Programme Workspace Design E 2 E Procurement Use of Data Smart Buildings Space Utilisation

Efficiency & Productivity Efficiency • Reduced Whole Life Costs • Reduced £ / FTE not necessarily reduced £ / m 2 Productivity • Better business outcomes from our workforce • Improved leadership & management (personal engagement) • Collaboration within and between teams • Better use of modern IT and digital tools • Attracting (and retaining) the talent we need

HMRC Locations Programme UK’s largest office property programme • Phase 1 of the Govt Hubs Programme • Acquire 3 million square feet • Renegotiate on 1 million square feet • Dispose of 9 million square feet Our aims: • Support HMRC service improvement • Improve productivity and reduce cost • Create Great Places to Work

Workspace Design Core Learn Collaborate Access Concentrate Amenity

HMRC Locations Programme - Progress Buildings • 13 of 13 Regional Centres secured • 1 complete and occupied • 8 out of the ground and 5 topped out • 63 old offices closed People • 10, 000 people in new environments • 12, 000 people have had F 2 F conversations about moves

HMRC Locations Programme - Benefits Efficiency • £ 300 m savings in 10 years to 2025 • £ 90 m savings pa from 2028 • A further £ 74 m pa avoided from 2021 Productivity • • • Need for remote management reduced Improved collaboration Reduced rework & improved innovation Great feedback on the quality of the space Great tool in attracting new staff Building relationships with universities

E 2 E Procurement Commercial Strategy • Build a family of collaborative partners • Seek attitude and quality rather than ‘cheapest bidder’ • Encourage ‘over-laps’ between suppliers Procurement Strategy • • Strategic Delivery Partner (SDP) – programme management Single Design partner Single Project Management / Cost Management partner Acquire buildings for development or refurbishment (to our design) National pool of Fit-Out Contractors + Client Direct Supply National pool of Furniture (FF&E) Suppliers 3 Operational Areas each with separate Hard FM and Soft FM suppliers

E 2 E Procurement – Bridging the Gap Programme Management (SDP) Design RIBA stages for all Maintain relationship with developer during Cat A Acquisition Project Management / Cost Management Construction (Cat A) 2 Stage Design & Build Handover Fit Out and FF&E (Cat B / C) + IT Start at end Cat A Includes Catering facilities Hard FM Soft FM

Intelligent Use of Data • Use condition and utilisation data to inform decision-making • Optimise the use of assets • Enhance the efficiency of our building infrastructure • Reduce costs • Enhance the customer experience

Digital Design Principles • • A high standard of security Protect personal details and privacy ‘Plug and play’ Use ‘commercial off the shelf’ (COTS) products wherever possible 3 D plus Work collaboratively with our supply chain Develop incrementally Innovate and pilot ideas – accepting or rejecting them early

Strategic Asset Management • • Asset Management tool (MERLIN) Asset condition Lifecycle investment Benchmarking Analytics Data-led decisions Leading to Customer Experience

Building Information Modelling • • • Working closely with all our partners Underpins much of our digital work Functional Model – to join all parts of the industry Building systems (Level 2 Assets) E 2 E approach

Smart Buildings • • • CAFM systems Building Management Systems (BMS) Critical plant predictive maintenance Other sensors – eg CO 2 Access Control systems CCTV Smart meters – electricity and water Performance analytics – e. g. energy usage Customer Apps – eg room booking

Space Utilisation • Utilisation of buildings • Utilisation of floors and types of workplaces • Target utilisation – FTE / m 2 • The right utilisation • Not the highest we can get • Access Control systems • Wi-fi tool • Balance of Cost & Productivity

Our Goal - Customer Experience • • • Great locations Excellent buildings Flexible and inclusive workplace design Great services Supported by data throughout With the right space utilisation Leading to: Productivity and Efficiency

Summary • • HMRC’s Locations Programme is the UK’s largest property programme Well underway – designed for our people It will reduce costs and improve productivity Our commercial strategy is seeking quality, collaborative partners We are making good use of data To create smart buildings And deliver Great Places to Work Opening next: Bristol – Summer 2019