Gateways in the Asset Management Process Stock Condition Survey

Purpose and Scope

The Stock Condition Survey (SCS) is the basis asset management strategy, and is used to ascertain the condition of the stock and predict its future investment and maintenance requirements. It is the most comprehensive source of information about the asset.

The survey brief provides the basis for the SCS and dictates the type of survey undertaken.

Timing/Timescales

Often three years before the ‘Options Appraisal’ for a housing stock solution, see below.

Typical duration two years.

Survey Brief

The following are to be included in the brief for a potential consultant:

Condition of stock over a defined period:

  • 30 years, general standard for business planning purposes
  • 40 years, for PFI
  • Other periods, shorter timescales to suit business model

Banding of stock condition information, collect in maximum of 5 year bands, consider other timescales or milestones, for example:

  • Decent Homes Standard, completion at 2010
  • Welsh HQS
  • Scottish HQS
  • Local issues and requirements
  • May require annual bands for urgent works in early years

Archetypes to be used:

  • Standard
  • Non-traditional
  • Also other client driven and bespoke to stock models

Sample size and structure (consider likely implementation path, such as PFI v ALMO, and likely contract routes, such as collaborative/partnered or traditional)

  • Customary: 10%
  • Detailed investment planning: 20-30%
  • PFI target: 50% internal, 100% external
  • Sample survey is then built up to 100% by extrapolation or cloning process, hence need to provide updating service to maintain validity of database. See Audit Commission guidance on maintenance and audit - KLOE 3

Purpose of the SCS, which may include but not be limited to ascertaining the condition of the stock and predicting future investment/maintenance requirements, with respect to the following standards:

Use to be made of the information for example:

  • Inform development of business plans/thirty year cost profiles
  • Inform investment and asset management plans
  • For future funders
  • Prioritising investment
  • Developing standards
  • For informing other stakeholders

IT systems either, to be used for the survey (if appropriate) or with which the output information must be compatible (usually, the client’s asset management system):

  • Purpose. e.g. SCS, valuations, cashflows, property attributes, housing management, rents, repair and maintenance;
  • Structure
  • Systems in use
  • Interface requirements
  • Degree of integration possible/probable (consider bespoke system)
  • User friendliness
  • Ease of maintenance

Outputs of the SCS:

  • Soft/hard deliverables
  • An executive summary as to the overall survey findings and general condition of the stock
  • Details of the survey methodology
  • 30 year costs reports for business planning/asset management purposes
  • Detailed 5 year cost reports to inform the development of the immediate 5 year programme
  • An assessment of the properties against the decent home standard
  • Details of the unit cost and life cycle assumptions
  • Capital requirements
    • Decent Homes
    • Other
    • Profile
  • Revenue requirements
    • Decent Homes
    • Other
    • Profile

Warranty on SCS

  • For funders and other third parties, eg RSLs, and acquiring landlords

Other Gateway Items

Coordinate the consultant brief with HRA finance expertise.

Assessment criteria for potential consultant:

  • Experience of the preferred implementation routes, eg PFI
  • Referees
  • Indemnity
  • Understanding of wider issues
  • Fees

Legal involvement

Long term requirements for control, update and maintenance of the asset data.

Arrangements for presentation of outputs to stakeholders (consider including in consultant brief)

The costs of survey vary greatly with the type of stock and the implementation route likely to be chosen. Based on a 25% sample the following are indicative costs (as of July 2006):

Stock of 3,000 properties = £50,000
Stock of 7,000 properties = £110,000
Stock of 15,000 properties = £225,000
Stock of 30,000 properties = £400,000

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