scholarly journals Cost Estimating - Make or Buy?

10.28945/3657 ◽  
2017 ◽  
Vol 2 ◽  
pp. 1-24
Author(s):  
Troy Montgomery
Keyword(s):  
Real Estate ◽  
Medical Center ◽  
Clinical Excellence ◽  
Well Being ◽  
Coordinated Care ◽  
Cost Estimating ◽  
Bottom Line ◽  
Cost Estimates ◽  
Short Period ◽  
Corporate Real Estate

Determining how a corporate real estate organization estimates its project costs is a big decision that impacts budgets, customers, and the bottom line. Our next management meeting is only a few days away. What recommendations should we make for improvement of cost estimating? Troy Montgomery, a consultant at Humana in April of 2015, was tasked with providing leaders of Humana’s corporate real estate group, Workplace Solutions (WPS), with an answer to how to provide early cost estimates on large construction projects. Should they create a solution internally, outsource development of a solution, or look to an existing solution to provide a “cost calculator”? There was so much variation in the types of projects WPS worked on, not to mention an assortment of internal clients they served. Such complexity made it virtually impossible to come to a straight forward recommendation. Humana was a leading health and well-being company focused on making it easy for people to achieve their best health with clinical excellence through coordinated care. When Humana needed a new or renovated office building, call center, pharmacy, or medical center they engaged the WPS team to manage the start to finish solution. Similar to any other large project, the end user was concerned with three things: time, cost, and quality. The initial questions from WPS internal clients were typically “How long is this project going to take and how much will it cost?” WPS managers believed they provided sufficient cost estimates once all of the planning activities were completed, contracts selected, and construction drawings finalized. However, they were curious if could provide better estimates at the initial onset of a new project, before all of the planning is complete. In late 2014 and early 2015 Montgomery led a small, cross-functional team of WPS associates through process improvement initiatives. The team had only been commissioned for six months and due to their success, WPS leaders challenged the team to identify additional improvement opportunities. Determining a solution to an issue like cost estimating would not only build the credibility of Montgomery’s team, but it would also open up new opportunities for additional improvements in the future. First, the team identified the current methodology for cost estimating within WPS. In parallel they researched cost estimating tools on the market and investigated best practices within the industry. Based on the team’s analysis, WPS leaders recognized they needed a solution in a short period of time. Should they task internal resources, purchase an out-of-the-box IT tool, or commission an external vendor to create a solution?

scholarly journals COST ESTIMATING – MAKE OR BUY?

10.28945/3649 ◽  
2017 ◽  
Vol 6 ◽  
pp. 03
Author(s):  
Troy Montgomery
Keyword(s):  
Real Estate ◽  
Cost Estimating ◽  
Bottom Line ◽  
Corporate Real Estate ◽  
Project Costs

Determining how a corporate real estate organization estimated its project costs was a big decision that impacted budgets, customers, and the bottom line. What recommendations should be made for improvement of cost estimating at our upcoming management meeting?

Coworking space as a third-fourth place: changing models of a hybrid space in corporate real estate

2019 ◽  
Vol 21 (4) ◽  
pp. 324-345 ◽  
Author(s):  
Eunhwa Yang ◽  
Catherine Bisson ◽  
Bonnie Eaton Sanborn
Keyword(s):  
Real Estate ◽  
Academic Research ◽  
Well Being ◽  
Social Needs ◽  
Mobile Technologies ◽  
Future Research ◽  
Content Type ◽  
Operational Characteristics ◽  
Corporate Real Estate ◽  
Coworking Spaces

Purpose This paper aims to review the concept and characteristics of coworking space, especially physical and operational characteristics and its objectives. The authors propose three models of coworking spaces, such as revenue, synergistic and customer contact, which organizations can use as a part of their corporate real estate strategies to build workplace flexibility and resiliency. This paper also addresses research gaps and a research agenda for future research. Methodology This paper is a literature review of academic research focusing on coworking spaces. Because of the relatively limited existing academic literature on the topic, industry sources and white papers are also reviewed. Findings The authors categorized common threads of the existing literature on coworking spaces to emergence and growth trends, the types of users, the type of work to be completed in these spaces, characteristics of coworking spaces and the desired outcomes of coworking space models. Coworking spaces are expected to grow worldwide because of the increase in knowledge-based economy, the “digital nomad” lifestyle and mobile technologies, however, there is limited research on the relationship between spatial and operational characteristics of coworking spaces and users’ collaboration, social well-being and creativity. No research identified fully articulated the nuanced differences between the types of coworking spaces now found in the real estate ecosystem. Research limitations There is limited academic, empirical research focusing on coworking spaces. Thus, the search for literature itself is limited to a small number of papers. Although the authors extended the search to non-academic sources, the conclusion of this study is tentative because of the prematurity of the topic. Originality/value This paper urges the identification of research questions, considering the fast growth of coworking spaces and suggests future research directions based on newly proposed models. Industry practitioners, including building owners, managers, coworking space providers and corporate real estate practitioners, can consider using variations of coworking space concepts and characteristics, as they understand the importance of social needs and connectivity among users. By addressing the history of the coworking space as a concept and business model, and updating the types of models to include new coworking spaces, the authors provide further options to industry practitioners as to how to integrate coworking into their real estate.

scholarly journals Student residences: time for a partnership approach?

2020 ◽  
Vol 38 (2) ◽  
pp. 128-146
Author(s):  
Laura McCann ◽  
Norman Hutchison ◽  
Alastair Adair
Keyword(s):  
Higher Education ◽  
Real Estate ◽  
Private Sector ◽  
Critical Role ◽  
Well Being ◽  
Education Sector ◽  
Content Type ◽  
Corporate Real Estate ◽  
The Uk ◽  
Uk Higher Education

PurposeRecent years have witnessed significant increases in the number of undergraduate students entering UK higher education. This increase is a result of the removal of the sector-wide cap on student numbers in England and Wales, along with a growth in overseas students attracted by the reputation of UK universities and the weakening of the value of Sterling. Adopting a corporate real estate perspective, the aim of this paper is to understand how the UK student residence market is structured and financed, and to identify the motivations that are driving the strategies adopted by the universities, private sector providers and investors in this market. In doing so, this research seeks to test the appropriateness of the Gibler and Lindholm (2012) model of corporate real estate strategy in the UK higher education sector.Design/methodology/approachData was gathered from a survey of UK university secretaries, combined with interviews of private sector providers, bank lenders and the analysis of secondary data on investment flows into purpose built residential accommodation (PBSA).FindingsUK university real estate strategy is mainly one of outsourcing student accommodation to reduce costs as well as employing modern purpose-built student housing as a marketing tool and brand enhancer. This strategy is also used as a risk mitigatory tool enabling universities to adjust to changing student demands. Revisions to the Gibler and Lindholm (2012) model are proposed to reflect the reality of the real estate strategy adopted by the universities. Private sector providers view the sector favourably and are set to be the main providers of new supply over the next decade, entering into strong partnerships with the universities. While there is evidence of some oversupply of bed spaces in certain cities, well-located developments are viewed as an attractive lending opportunity. Since 2013 there has been significant growth in institutional investment into UK student accommodation, albeit sentiment is currently tempered by political uncertainty.Practical implicationsThe role of PBSA designed to meet modern student requirements is playing a critical role not only in attracting, recruiting and retaining students but also enhancing the overall higher education experience promoting student welfare and well-being.Originality/valueThe corporate real estate strategy adopted by the UK higher education sector is an under researched area. This paper focuses on the strategy surrounding student accommodation provision and reports on the findings of an extensive survey of the key players in this sector. The results are of value to all stakeholders including government and regulators, at a time when higher education is facing substantial challenges. The evidence of a growing partnership between universities and the private sector is viewed as a logical solution, both for the present and the foreseeable future.

scholarly journals Measurement and benchmarking of workplace performance

2018 ◽  
Vol 20 (3) ◽  
pp. 177-195 ◽  
Author(s):  
Theo J.M. van der Voordt ◽  
Per Anker Jensen
Keyword(s):  
Real Estate ◽  
Performance Measurement ◽  
User Satisfaction ◽  
Process Model ◽  
Well Being ◽  
Facilities Management ◽  
Workplace Performance ◽  
Trade Off ◽  
Content Type ◽  
Corporate Real Estate

Purpose The purpose of this paper is to present a process model of value-adding corporate real estate and facilities management and indicators that can be used to measure and benchmark workplace performance and the added value of workplace interventions for an organisation. Design/methodology/approach The paper compares the performance measurement and benchmarking theory with current practice and data from different work environments. The paper builds on two books on adding value through buildings, facilities and services, both edited and co-authored by the authors of this paper. The books were based on literature reviews, interviews with practitioners, cross-border studies of performance measurement and benchmarking and in-depth analyses of various value parameters by experts from different countries. In addition, theory and empirical examples of benchmarking have been included. Findings The paper presents 12 value parameters that are seen as relevant in measuring and benchmarking of workplace performance: four people-oriented, four business processes-related, two economic and two social parameters. Because not all values can be easily expressed in monetary units, various other ways of measuring are presented that can help to monitor and to benchmark workplace performance. The 12 values and ways to measure can be used to support a more integrated business case approach that goes beyond “dollar-metrics” and spreadsheet-based decision-making. Both quantitative and qualitative performance indicators, including hard and soft factors, are needed to define the trade-off between the costs and benefits of interventions in corporate real estate, facilities and services and to cope with the interests and needs of different stakeholders. Practical implications To add value to an organisation, workplaces have to provide value for money by a positive trade-off between the benefits, i.e. support of the organisational objectives and the primary processes and the costs, time and risks connected with achieving these benefits. Widely used indicators to measure the costs are the investment costs, running costs and total cost of occupancy. These metrics are primarily connected to efficiency, i.e. to optimal use of the resources of a firm, but much less to effectiveness and benefits such as user satisfaction, productivity, health and well-being. Originality/value The paper links performance measurement and benchmarking to value-adding corporate real estate and facilities management and presents new ways to measure and benchmark the performance of buildings, facilities and services in connection to organisational performance.

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