Refurbishment Or New Build?

There are a number of issues to consider when making the decision whether to rebuild or refurbish at your particular institution. The decision is not one that can be taken lightly and in either case will involve major capital outlay. Issues that you may need to think about include:

• Is it cost effective to maintain your current estate? You may find that in the long run it is more expensive to stay in your rundown buildings than it is to move into new ones - Edinburgh's Telford College found that it would cost them £3 million more to refurbish its old buildings than to move.
• Many buildings are no longer fit for purpose and maintenance costs are high. The buildings may not be suitable for refurbishment to a standard appropriate to the requirements set.
• Some estates are larger than they need to be, and therefore not as efficient as they could be, and would benefit from downsizing. The disposal of surplus space can be financially attractive if purchased for development.
• The location that you are currently in may no longer be suitable, and it may be advantageous to relocate. Again this may prove financially attractive and enable you to raise funds towards the cost of a new building.

The Learning and Skills Council offers some useful information on the Development Stages in a Property Strategy, including decision-making on maintenance and refurbishment versus rebuilding in its LSC Guidance on College Property Strategies. Whilst aimed at FE much of the information is transferable across the FE and HE sectors.