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Educated Savings
16 June 2016 Jane Harrison-White, Executive Director
A study into the proportion of universities in England with an in-house Buildings Repair and Maintenance workforce, and early research findings on the savings being achieved through estates spending efficiency drives.
Management Summary
Pressure continues to mount in the university sector to reduce expenditure while improving facilities and the student experience
The trebling of tuition fees has repositioned students as savvy consumers, expecting to get value from their university experience. The condition and quality of accommodation and estates in a university play a key role in a student’s decision about where to study
Current total annual revenue expenditure on UK university estates management stands at £2.0bn. However, the cost of estates management vary between £1m and £40m per institution
Examples from other sectors show that within Facilities Management, Buildings Repair and Maintenance holds high potential for improvement
A study of 28 universities that have implemented an estates repair and maintenance efficiency programme (23% of the top 120 UK universities), shows that annual savings averaging 10% have been achieved.
Most universities are choosing to retain an in-house workforce to carry out this work, contributing to local employment and community engagement
Research commissioned for this paper has found that 88% of universities employ an in-house Buildings Repair and Maintenance unit, with only 12% having chosen to outsource this function
Universities have not yet fully realised their potential for cost and efficiency savings that could be achieved by strategic procurement, particularly in the repairs and maintenance supply chain
Facilities Management and procurement are non-contentious areas in which to seek efficiency savings; by professionalising Buildings Repair and Maintenance Supplies (implementing just-in-time stock management, improved pricing negotiations, and transparent job scheduling), costs could be reduced and workforce productivity improved, leading to quicker repair times, improved facilities and satisfied students
It is expected that the overall financial benefit from such initiatives will match the experience of other public services, which have seen in excess of 10% savings
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16 June 2016 
Jane Harrison-White, Executive Director
