10 Feb 2015
Babcock appointed sole strategic asset management partner for Richmond Council’s property portfolio
Babcock International Group (Babcock) has been awarded a seven-year contract by the London Borough of Richmond upon Thames (Richmond Council) to deliver an integrated property and estate management solution that combines strategic asset management, facilities management, estate rationalisation and project management services.
This ‘Total Facilities Management’ contract will see Babcock work in partnership with Richmond Council to optimise the council’s use of its physical assets and guide its long-term strategy for asset management. Babcock will be incentivised to help Richmond Council to drive down costs, increase efficiency, improve utilisation and in due course increase revenue.
Contract mobilisation started in early 2015, with delivery commencing from 1 April 2015. The contract is valued at up to £56 million over the seven-year period, with the potential for a further three-year extension. Over this time Babcock is committed to improving the condition of Richmond Council’s estate comprising in excess of 100 properties – ranging from offices and libraries to museums and open spaces – and to helping the council improve service levels for the 200,000 people in its community.
Services combined through this contract are strategic property asset management, estates management, estate rationalisation, capital works management, health and safety management, environment management, asset maintenance, hard and soft facilities management, utilities management and sustainability. Richmond Council currently delivers these services in-house or through external service providers.
Philip Palmer, Integrated Services Director at Babcock said:“This is a ground-breaking approach that will combine an array of property related work-streams for the first time, bringing in estate management as well as more traditional facilities management services. By doing this Babcock and Richmond Council can work in partnership to derive truly significant savings whilst simultaneously improving services and facilities for local people. This is critical at a time of austerity when reduced funding and the drive for improved outcomes have placed unprecedented pressure on local government.
“Babcock has a successful track record in working with local authority customers, particularly in delivering school improvement services. This combined with our asset management approach that has been proven in sectors from the Emergency Services to Airports enables us to offer a truly integrated solution to Richmond Council that can flex to respond to the shifting needs of the council and the community it serves.”
Richmond Council’s Cabinet Member for Environment, Councilor Pamela Fleming, said: “The Council is always looking at ways in which it can deliver better services for less money for its residents. This ‘Total Facilities Management’ contract will certainly do this and deliver considerable savings. This outsourcing will deliver improved services and save our community money in the longer term.”