Ive, G; Murray, A and Marsh, R (2015) Cost and value ratios of operating renewed English secondary schools. Building Research & Information, 43(4), pp. 465-485. ISSN 0961-3218
Abstract
The relative cost ratios of facility construction and operations, and the value generated from building use have been much debated in recent years. Relative values of these ratios are likely different between alternative facility types. Empirical analyses of ratio estimates are presented for English secondary schools over recent years. Findings challenge established views of the relative cost ratios of 1 (construction), 5 (facility management) to 200 (operations or staff), suggesting the ratios are actually 1/1/5 respectively. The study also estimates the value of investing in schools in terms of improved outcomes, applying educational attainment data for rebuilt schools. These are converted into monetary values using wage uplift indicators. This produces estimates of expected economic benefits (increased productivity and output) and benefits to government via future tax receipts (financial return). Findings suggest the present value of future tax revenues alone do justify investing in school rebuilding. Average economic returns are positive but highly variable, with high dispersion in expected benefits. These benefits are positive only in half the rebuilt schools. The results will help inform allocation of public resources in schools, while also assisting management of the growing independent and semi-autonomous school estate.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | building evaluation; cost-benefit analysis; evidence base; human capital; public policy; schools; whole-life cost |
| Index terms: | estimate, public policy, evidence, building evaluation, uplift, secondary school, rebuilding, revenue, productivity, human capital |
| Subjects: | educational institutions, asset management, building construction, structural engineering, management, economics, public policy, economic analysis, financial and cost management, evaluation and assessment methods |
| Topics: | Governance, Engineering Principles, Research Practice, Business Strategy, Cost Management, Education, Organizational Design |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here