Resource Management Guide No Property Management Planning Guidance

Transcription

1 Resource Management Guide No. 501 Property Management Planning Guidance JULY 2014

2 Commonwealth of Australia 2014 ISBN: (Online) With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia ( licence. The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3 AU licence. Use of the Coat of Arms The terms under which the Coat of Arms can be used are detailed on the following website: Contact us Questions or comments about this guide should be directed to: Policy and Advice Branch Department of Finance John Gorton Building King Edward Terrace Parkes ACT propertyframework@finance.gov.au Internet: This guide contains material that has been prepared to assist Commonwealth entities and companies to apply the principles and requirements of the Public Governance, Performance and Accountability Act 2013 and associated rules, and any applicable policies. In this guide the: mandatory principles or requirements are set out as things entities and officials must do; and actions, or practices, that entities and officials are expected to take into account to give effect to those principles and/or requirements are set out as things entities and officials should consider doing.

3 Contents AUDIENCE... 2 RESOURCES... 2 SUMMARY... 2 OVERVIEW OF PROPERTY MANAGEMENT PLANS... 3 Purpose of this planning guidance... 3 Purpose of property management plans... 3 Level of complexity... 4 Accountability and responsibility... 4 Frequency of reviews... 4 BETTER PRACTICE PROPERTY MANAGEMENT PLANNING... 5 Better practice property management plans... 5 Setting of property objectives... 5 Use of performance indicators... 5 Risk management... 6 Internal procedures... 7 Property management plan coordinator... 7 Sources of information... 7 Record keeping... 8 Accommodation manual... 8 STRUCTURE OF A PROPERTY MANAGEMENT PLAN... 9 Template content... 9 Content detail Appendix A: Glossary Appendix B: Property profile better practice templates Appendix C: Gap analysis better practice template Resource Management Guide 501 Property Management Planning Guidance 1

4 Audience The Commonwealth Property Management Framework (Property Framework) requires Public Governance, Performance and Accountability Act 2013 (PGPA Act) Non-corporate Commonwealth Entities (entities) to establish a property management plan. The Property Management Planning Guidance (the Planning Guidance) has been developed to assist entities under the Property Framework to produce property management plans. Resources This guide is available on the Department of Finance website at This document forms part of the guidance to entities under the Property Framework. The published suite of documents form part of the Resource Management Guidance series issued by Finance including: RMG No. 500 Overview of the Commonwealth Property Management Framework RMG No. 502 Guidance for the Two Stage Capital Works Approval Process for Australian Government Construction Projects RMG No. 503 Whole-of-Life Costing for Australian Government Property Management RMG No. 504 Commonwealth Property Management Framework Lease Endorsement Process RMG No. 505 Funding arrangements for Commonwealth Property Additional guidance is available from the Commonwealth Property Management Framework webpage at or by contacting propertyframework@finance.gov.au. Summary 1. An entity s property management plan is to be approved by the entity s Accountable Authority (or an official authorised by the Accountable Authority) and in place by 1 October The property management plan is to apply to properties leased or owned by the entity within Australia (including external territories). 2. A property management plan is an internal planning document designed to assist the Accountable Authority (or an official authorised by the Accountable Authority) to promote the efficient, effective, economical and ethical use of Commonwealth resources in the delivery of the entity s property requirements. 3. Property management planning is one of the five Commonwealth Property Management Principles. The other key principles are: value for money; efficient and effective design; appropriate accountability measures; and cooperative Commonwealth property management measures. 4. Property management relates to the effective operation of an entity s workplace and infrastructure and coordination with its business activities, officials and stakeholders. The range of property management responsibilities will vary across entities depending on size, diversity of operations and changing functions. However, property management will generally encompass the following: acquisition (including leasing); Resource Management Guide 501 Property Management Planning Guidance 2

5 repairs and maintenance; refurbishments (fit-out and capital improvements); lease management; health and safety; energy and sustainability management; and facilities management (including security and cleaning). Overview of property management plans Purpose of this planning guidance 5. This planning guidance is intended as a better practice tool to support a structured approach to property planning. The planning guidance should help entities to: set property objectives and define performance indicators; assess performance within the property portfolio using relevant performance indicators; ensure that the quantity, functionality, quality, cost and availability of property are appropriate; identify opportunities for property to better support the strategic direction and business needs of the entity; assess options for the acquisition, sharing, renovation and disposal of property, and associated change management; and manage the frequency of reviews and updates. Purpose of property management plans 6. Property management plans are an important strategic planning tool for entities. A property management plan should enable the Accountable Authority (or an official authorised by the Accountable Authority) to establish that the entity s property is appropriate for the size and nature of the entity s existing and future business needs. 7. Property management plans should be treated as dynamic and flexible documents that can be adapted to support Government initiatives and entity objectives. 8. Property management plans should be prepared in conjunction with and directly linked to an entity s broader strategic plans, including business and corporate plans. The linking to strategic plans will ensure that property management is closely aligned with other entity objectives and that property management issues are well understood and given appropriate consideration by the accountable authority within the entity. 9. Where entities have capital asset management plans or other relevant plans for the management of property, reference to these plans or inclusion of key details in the property management plan can prevent duplication of planning activities. 10. Property management plans should consider the short and long-term challenges faced by property managers, as well as the longer-term property requirements of the entity. Some of these challenges include: monitoring and managing the performance of the property portfolio; managing property risks (including business continuity risks); aligning property arrangements with the entity s business needs; identifying opportunities and selecting and implementing strategies for improvement; assessing market forces and economic cycles that affect leased properties, and planning the timing of critical property decisions accordingly; managing employee participation and input; reducing energy use and environmental impacts; Resource Management Guide 501 Property Management Planning Guidance 3

6 complying with relevant legislation and Government policies; and managing any requirements to have properties in certain geographic locations (e.g. through legislation, community service obligations or other mandate) while maintaining an efficient property portfolio. Level of complexity 11. The complexity of a property management plan should reflect the size, nature and risk profile of an entity s property requirements. For example, an entity that manages diverse operations in various locations would normally require a more detailed property management plan than an entity with a small number of leases and few changes in its property requirements. Accountability and responsibility 12. Property management plans should outline clear lines of accountability and responsibility for: the development, approval, implementation and review of the property management plan; delivery of specific projects listed in the property management plan; and the ongoing maintenance of the entity s property. Frequency of reviews 13. Property management plans should be reviewed and updated on an annual basis, or more regularly if circumstances require, to allow the plan to remain aligned with the objectives of the entity. Where entities have less dynamic or complicated property portfolios, it may be appropriate to review and submit the plan to the Accountable Authority (or an official authorised by the Accountable Authority) for approval every two or three years. 14. Property management plans should also be reviewed and updated whenever an unforeseen event occurs that is significant enough to have a major impact on the property requirements of the entity. Examples of events that may trigger a review include: Machinery of Government changes; updating of interrelated strategic plans; movement of head office or a major function to a new location; a major refurbishment or fit-out; significant organisational restructures or changes in entity function; or new policy proposals. 15. The property management plan can alert the Accountable Authority (or an official authorised by the Accountable Authority) to changes that would trigger an immediate review. 16. Whenever material updates are made to the property management plan, the revised plan should be submitted to the entity s Accountable Authority (or an official authorised by the Accountable Authority) for approval. Resource Management Guide 501 Property Management Planning Guidance 4

7 Better practice property management planning Better practice property management plans 17. The content and format of property management plans are to be determined by each entity and should reflect the property requirements of the entity concerned. However, as a better practice guide, property management plans should: set out the time period covered by the plan and the timing of future reviews; analyse business needs; provide an account of the existing property portfolio; identify any future requirements (including any gaps to be filled); be aligned with the needs and future direction of the entity (including corporate or business plans); identify significant risks related to the entity s property and set out mitigation strategies, including any associated actions; identify opportunities and strategies to meet property requirements; outline how strategies will be implemented; provide for monitoring of the property portfolio against relevant performance indicators; identify performance goals and how achievement will be measured; and provide clear lines of responsibility and accountability. 18. See the section below on the structure of a property plan. Setting of property objectives 19. Property objectives should be determined by the entity after taking into account the functions and business needs of the entity, the purpose and use of each property, all relevant Government policies and other planning and management issues facing the entity. Use of performance indicators 20. Performance indicators should be used by entities to measure and compare the performance of their properties. They are aligned to goals and objectives. Well set performance indicators should help the entity to improve the performance of its properties and assist property managers to demonstrate progress towards, or achievement of, the entity s property objectives. 21. Entities may wish to consider using the performance indicators listed below in property management plans. Use of these indicators can assist with trend analysis, comparison between similar properties or property portfolios and allow for assessment against market conditions and forecasts. Indicator type Property utilisation 3 Costs Work practices Indicator Fit-out density (m2 / workpoint) Occupational density (m 2 / occupied workpoint) Workpoint vacancy (%) Rent per square metre ($ / m 2 / p.a.) Other property operating costs per square metre ($ / m 2 / p.a.) Total property costs per square metre ($ / m 2 / p.a.) Total property costs as a percentage of total operating expenses (%) Percentage of employees participating in formal desk- Resource Management Guide 501 Property Management Planning Guidance 5

8 Indicator type Indicator sharing or formal work from home arrangements (%) Environmental sustainability Energy usage per square metre (MJ / m 2 / p.a.) - Base Building Energy usage per person (MJ / occupied workpoint / p.a.) Tenancy National Australian Built Environment Rating System (NABERS) Energy rating (stars) - Tenancy and Base Building 22. When using any performance indicator to assess the performance of properties, consideration should be given to the level of influence or control that the entity has over that indicator. For example, where an entity is leasing/occupying part of a property, then this should be noted in the property management plan and taken into account when assessing performance against the indicators. 23. The performance indicators suggested for property utilisation are based on the whole-of- Government indicators developed as part of the Australian Government s Property Data Collection (PRODAC). These indicators are applicable to office accommodation and are defined in the PRODAC specifications. 24. When using indicators relating to property costs it is good practice to note all of the specific costs included in any aggregate figures. This will enable more accurate cost comparisons over time or with other entities. These costs may include whole-of-life maintenance costs. 25. Performance indicators relevant to other Government policies may be useful to incorporate into the property management plan where considered appropriate (e.g. performance indicators relating to the environmental performance of a property or other performance indicators that must be disclosed or reported). Where an entity has an environmental management plan that includes targets for reducing water and waste, it may be appropriate to include such indicators in the property management plan. The inclusion of such indicators may enable performance or compliance against Government policies to be tracked over time. Risk management 26. Risk management involves the systematic identification, analysis, treatment and allocation of risks. 27. Entities should ensure that they have appropriate risk management procedures in place so that all significant risks are identified and assessed. Relevant risks and strategies to manage and mitigate these risks should be outlined in property management plans. 28. Risks relating to property management may include: changes to the entity s role or property requirements due to machinery of Government, policy or budget changes; failure to accurately identify space requirements (in terms of location, quality or quantity); insufficient or inappropriate resources to carry out the entity s property-related activities e.g. lack of employees with the necessary skills; management systems not being able to identify inefficient use of space; poor maintenance of records e.g. inadequate lease documentation, key documents not filed; Resource Management Guide 501 Property Management Planning Guidance 6

9 unduly onerous lease clauses; failure to understand and enforce contract provisions e.g. failure to exercise a lease option within the trigger period; inflexible property portfolio that cannot adapt to meet changing business requirements; damage to buildings and other property assets from adverse natural events e.g. storms, flooding and fire; exposure to hazards or environmental contamination; loss of property due to damage; failure of key infrastructure e.g. fire detection equipment; and failure to support unique entity requirements, such as an uninterrupted power supply. 29. The extent of risk management required will vary depending on the likelihood of these risks occurring and their potential impact. Entities should have regard to the principles outlined in Comcover s Risk Management Better Practice Guide and the options available under the Comcover Insurance Policy. Internal procedures 30. Entities should establish internal procedures to facilitate effective property planning and management. Internal procedures can be included in an entity s Accountable Authority Instructions or Operational Guidelines and be referenced in the property management plans. The property management planning procedures should reflect the nature of the entity and its property needs, and may include processes for: seeking input, drafting, approving and implementing the property management plan; reviewing and updating the property management plan; formal communication mechanisms to coordinate property management activities within the entity, including scheduled meetings with senior executives in key functional areas such as human resources, information technology, procurement, legal and corporate; formal communication mechanisms to coordinate property solutions across the portfolio or with other entities; and maintaining accurate and up-to-date property records. Property management plan coordinator 31. Entities may wish to appoint a property management plan coordinator to promote a coordinated approach to property planning across the entity. The coordinator s responsibilities may include collating information, drafting the property management plan, submitting the property management plan for approval, advising relevant officials of their assigned responsibilities and managing reviews and updates. Sources of information 32. Information for inclusion in the property management plan will need to be gathered from a number of sources. These could include: property managers; corporate services managers (including facilities management, human resources, legal and information technology); relevant senior managers; the Chief Financial Officer and associated group; landlords and outsourced service providers; lease agreements; relevant Government policy documents; Resource Management Guide 501 Property Management Planning Guidance 7

10 planning and reporting documents such as staff surveys, corporate or business plans, portfolio budget statements, portfolio additional estimates statements and annual reports; and market information from property and real estate associations reports or publications. Record keeping 33. It is good practice to maintain records of the research and consultations undertaken when developing the property management plan. These records will: provide an account of how the property management plan was developed; document any decisions made relating to the property management plan and evidence the reasoning; if it is not possible to meet the Government s occupational density target in a particular tenancy (e.g. if the building design precludes a fit-out which enables the target to be met), record the reason why the density cannot be met and the approach taken to ensure the occupational density for that tenancy is as efficient as possible; and assist with developing and updating the property management plan in future years. Accommodation manual 34. In addition to the property management plan, entities may develop a complementary internal policy and procedural document to assist officials involved in the delivery of day-today property management activities (hereafter referred to as the accommodation manual ). The need for an accommodation manual will depend on the size and complexity of an entity s property management function. 35. An accommodation manual should complement the entity s property management plan but would normally be more prescriptive in nature. An accommodation manual would normally outline the property management and occupancy requirements of the entity. For example, it may include advice on: office and workstation configurations, including design illustrations, colour schemes, furniture requirements; fit-out specifications for particular work functions; security considerations, including for off-site document storage, data centres and co-location or sharing of facilities with other entities; provision and location of special function rooms, such as meeting, conference, interview, training and sick rooms; description of the fit-out process, who is responsible and who to consult; processes for reviewing property-related service contracts, including service delivery standards, to assess their effectiveness and to identify areas for improvement; processes for managing and monitoring the performance of property-related service providers; maintaining accurate and up-to-date records of leases and other information associated with the properties; occupational health and safety considerations; workplace practices, such as procedures for booking/using meeting rooms or other shared facilities; building user/tenant guides; Green Lease Schedule requirements for energy management plans, building management committee, etc; building and accommodation environmental management systems and plans where applicable; and heritage management plans. Resource Management Guide 501 Property Management Planning Guidance 8

11 Structure of a property management plan 36. An entity should assess the usefulness and appropriateness of the proposed structure and associated content for its internal audience, including the templates provided at Appendix B and C, before including it in its property management plan. A possible structure for a property management plan is provided below and it can be used as a template. Template content Executive summary Introduction Existing property portfolio and performance: identification of the existing property portfolio resources (including any approved projects); and account of the performance of each property (using relevant indicators). Existing and future property needs: identification of the entity s existing property needs taking into consideration the objectives and function of the entity; and outline of the entity s anticipated future property needs taking into consideration the objectives and function of the entity. Risk assessment: identification of the significant risks relating to the property portfolio and an outline of the associated mitigation strategies; assessment of the capacity of the existing property portfolio to respond to business continuity incidents; and assessment of the appropriate level of cover/suitable level of cover under the Comcover insurance policy. Gap analysis and performance assessments: assessment of the existing property portfolio against the existing and future property needs; identification of the level of desired property management performance targets set by the entity in terms of its own performance aspirations, and relevant targets set by the Government such as the occupational density target; assessment of the existing property portfolio against any performance targets, including the occupational density target; and identification of opportunities and strategies to improve property outcomes. Actions / Outcomes: overview of the strategies to be implemented (including any risks and mitigating strategies); and outline of how the strategies will be implemented (including resource needs and constraints). Responsibility and accountability: outline of the area of the entity that is responsible and accountable for the implementation of the opportunities and strategies; and outline of the frequency and/or triggers for reviews, updates and the approval process. Resource Management Guide 501 Property Management Planning Guidance 9

12 Content detail 37. The details to include under the content heading using the possible structure may be considered below. Executive Summary (guide: maximum one page) The executive summary should provide a high level overview of the information contained within the property management plan and may be designed to be read without the accompanying sections. In this section, it may be useful to include: a statement about the purpose of the property management plan; the time period that the property management plan covers and the timing of the next review; a high level summary of the entity s property portfolio e.g. aggregate details, including locations and tenancy areas by State, in tabular form where useful; the overarching property management strategies and goals; a summary of the assessments undertaken; an outline of the consultation and approval processes; and a statement of the risks and opportunities considered as part of the entity s property management strategy. Introduction (guide: maximum one page) The introduction should outline the role of property in meeting the objectives of the entity. The introduction should help to establish the context in which the property management plan has been developed. In this section, it may be useful to include: an outline of the entity s objectives and principle activities; a statement of the importance of property management to the operation and performance of the entity; a statement about the entity s property management priorities, projects and budget constraints; brief commentary on the compliance of the property portfolio with Government policy or legislative requirements and relevant industry standards; and a statement that demonstrates the entity s commitment to implementing the property management plan. Information included in the property management plan should be consistent with other relevant publicly available documents and the entity s strategic plans. Most of the information required to outline the activities and objectives of the entity can be found in corporate or business plans, budget statements and annual reports. When outlining the objectives and principal activities of the entity, it would be useful to address the requirements of being in a specific location for the delivery of services (e.g. whether the entity needs to be in a central business district or other major activity node within a city s metropolitan area, a major retail area, rural/remote areas or a combination Resource Management Guide 501 Property Management Planning Guidance 10

13 thereof). It may also be useful to address any expected changes in future activities (e.g. as a result of new policy proposals or significant restructures) and any associated impacts on the property requirements of the entity and key stakeholders (e.g. entity employees and the public). A statement about the entity s general property management priorities, strategies or goals and any budget constraints should help to inform the Accountable Authority (or an official authorised by the Accountable Authority) of the context in which the decisions or commitments contained within the property management plan were made. For example, priorities and strategies for entities with more frequently changing property needs may include shorter term leases with more flexible provisions, and allowance for and management of comparatively higher vacancy rates and office churn. In contrast, entities with more stable property needs may opt for longer term leases and life cycle management programs. Brief commentary in relation to compliance of the entity s property arrangements with Government policy requirements and the ability to meet targets or industry standards may also be included. For example, maintaining a certain NABERS Energy rating and planning specifically to meet the occupational density target would be useful. Existing property portfolio and performance (guide: maximum two pages plus tables) The aim of this section is to provide a complete account of the existing property portfolio and the performance of each property. Account of the existing property portfolio In this section it may be useful to: provide a description and inventory of the existing property portfolio, including any ongoing projects that affect it; and record the details of the existing property portfolio, including: specific lease information; area occupied; employees accommodated; location; and costs. Refer to the Property details table in the Property profile - better practice templates at Appendix B for a suggested format. Where useful, the profile of existing properties could be used to generate a graph listing properties by lease expiry (grouped by property type, location etc) in order to help inform the timing of future property decisions. Account of the performance of each property In this section, it may be useful to: provide a description of the existing property portfolio s performance (against relevant indicators); and record details of the performance of each property within the portfolio, including: property utilisation; density levels; costs; work practices; and environmental performance. Refer to the Property performance table in the Property profile - better practice templates at Appendix B for a suggested format. Resource Management Guide 501 Property Management Planning Guidance 11

14 Existing and future property needs (guide: maximum two pages) The aim of this section is to provide an account of the existing and future property needs of the entity (including short and longer-term needs). Account of the existing property needs In this section it may be useful to: outline the existing property needs of the entity taking into account the objectives and function of the entity; provide a description of the existing property needs with respect to the following factors: location of properties; amount of space; employee numbers and capacity; building functionality; building or fit-out requirements; any related capital expenditure; operating costs (e.g. lease, utilities); and funding issues; and specify who was consulted in compiling the information and any caveats that apply to the information or estimates. Account of the future property needs In this section it may be useful to: outline the anticipated future property needs of the entity, taking into account the objectives, function and future direction of the entity; describe the future property needs with respect to the following factors: location; amount of space; employee numbers and capacity; building functionality; building or fit out requirements; capital expenditure; operating costs; and funding issues; and specify who was consulted in compiling the information and any caveats that apply to the information or estimates. Risk assessment (guide: maximum two pages) The aim of this section is to identify the risks associated with the property portfolio not meeting the current and future needs of the entity and any mitigating strategies. In this section it may be useful to: develop a risk management plan that allocates responsibility to a senior manager for managing and reporting on the risks identified in an entity s property management plan; undertake a risk assessment that considers an entity s appetite for managing risk in relation to its property assets. Careful consideration needs to be given to the use of these assets at both the minimum and maximum levels; and check the entity s Comcover insurance policy to ensure it provides an appropriate level of cover to insure not only the entity s property assets, but also the impact of business interruption. Resource Management Guide 501 Property Management Planning Guidance 12

15 Gap analysis and performance assessments (guide: maximum three pages plus tables) The aim of this section is to compare the existing property portfolio against the short to longer-term property needs of the entity and to provide an assessment of the existing property against relevant performance goals and targets. This section will essentially be a gap analysis that identifies areas for improved property outcomes. Assessment of the existing property portfolio against the existing and future property needs In this section it may be useful to: provide an assessment of the entity s existing property portfolio against existing and future needs (see sections 4(c) and 4(d) of the Planning Guidance); and record and reference the details for those factors that are quantifiable (e.g. amount of space) in an appendix such as the Gap analysis - better practice templates at Appendix C. Assessment of the existing property portfolio against any relevant performance goals and targets In this section it may be useful to: provide an assessment of the property portfolio against any targets, including occupational density target and environmental indicators; and compare the performance details recorded at Appendix B against the relevant targets. Identification of opportunities and strategies to improve property outcomes In this section it may be useful to identify potential areas to improve property efficiency, effectiveness and alignment with the entity s current and future needs. These may relate to: the location of properties; the amount of space; the utilisation of space, including the use of data centres and the storage of records at an external location; building functionality; fit-out density and quality; costs; relevant market conditions e.g. availability of desired office space; and the potential to collaborate with other entities. Actions / Outcomes (guide: maximum three) The aim of this section is to specify which of the opportunities or strategies identified in the gap analysis will be pursued and to outline how they will be implemented. Outline of the strategies to be implemented In this section, it may be useful to: outline which opportunities, changes or strategies the entity will pursue, including any strategies and projects that have previously been approved by the Accountable Authority (or an official authorised by the Accountable Authority) and are being implemented within the period covered by the property management plan; Resource Management Guide 501 Property Management Planning Guidance 13

16 outline any constraints, including funding issues and internal and external dependencies in relation to maximising opportunities; and identify any risks or challenges associated with the strategies and any mitigating actions. If developed, an accommodation manual may include information relevant to the implementation of identified opportunities or strategies. Where this is the case, it may be useful to link relevant internal accommodation manual requirements to the strategy. The strategies or opportunities identified in this section may also result in a need to change or update the accommodation manual to reflect any new internal requirements. Outline of how the strategies will be implemented In this section, it may be useful to: detail how the opportunities or strategies to be pursued will be implemented and the progress of any actions currently underway e.g. how to consolidate properties, capitalise on subletting opportunities for excess space and deliver on acquisition/disposal programs; identify what the implementation of strategies will involve e.g. funding, capital expenditure, internal resources, consultation, approvals and timeframes; and explain how any changes will be managed within the entity, including communication and employee consultation strategies. Responsibility and accountability (guide: maximum one page) The aim of this section is to outline internal responsibility and accountability for the strategies and change programs identified in the property management plan that are to be pursued by the entity. This section may also outline who is responsible for the development, approval, execution and review of the property management plan. Outline of the areas of the entity responsible for the implementation of the strategies In this section, it may be useful to: identify which areas of the entity are responsible for the implementation of the proposed strategies and the specific projects listed in the plan; outline the ongoing maintenance requirements of the entity s property; and specify, where relevant, any responsibilities of outsourced service providers or external stakeholders. Outline of the frequency and/or triggers for reviews, updates and approval of the Property Management Plan In this section, it may be useful to: state the frequency of reviews and an explanation of the timing; specify any triggers for reviews and updates; outline the approval process; and note the internal consultation undertaken in the development or review of the property management plan. Resource Management Guide 501 Property Management Planning Guidance 14

17 Appendix A: Glossary The following definitions apply for the purposes of the Planning Guidance Term Accommodation manual Australian Government Property Data Collection (PRODAC) Office Central Services (Base Building) Office Tenant Light and Power (Tenancy) Office churn Operational guidelines Property management plan coordinator Workpoint Explanation An internal policy or procedural document to assist officials involved in the delivery of day-today property management. An accommodation manual would normally outline the operational property management requirements of the entity. PRODAC assists entities to identify better practice and inform whole-of-government property management policy. It provides a central database on the office space leased and owned by the Government. The energy used to power the heating, ventilation and air-conditioning (HVAC) systems, lifts, hot water for showers, toilets, security and common area lighting. It is commonly the responsibility of the building owner or manager, although in some leases, expenses for this energy use are on-charged to tenants based on the amount of area they occupy. The energy source for Central Services/Base Building energy use is usually mostly electricity, but can also be gas (e.g. in water heating). The energy used to power lighting and office equipment, including ICT equipment and appliances, water boiling units and any supplementary (local) air conditioning units. It is referred to as tenant energy use because in most commercial office lease arrangements each tenant in a building is billed separately by the utility provider for their energy use. Many buildings have a separate billing meter for this energy use so it does not get confused with other energy use in the building. The energy source for Tenancy/Tenant Light and Power is normally only electricity. The relocation of people within a building. Outlines an entity s processes and procedures that officials are to follow when carrying out certain duties. An official(s) responsible for coordinating the entity s property management plan. A desk, an enclosed office or a section of a counter or reception at which it would be reasonable to expect one person to carry out office work on an ongoing basis. Resource Management Guide 501 Property Management Planning Guidance 15

18 Appendix B: Property profile better practice templates B1 Property details Current property details Lease Costs Location Lease No. Owned / Leased Type* Area (m 2 ) Total workpoints (WP) Occupied workpoints (OWP) Fit-out: Remainder of useful life (years) Start date End date Option Details Other Lease Details ** Rent (p.a) Rent type: Gross or Net Other property costs (p.a) Total property costs (p.a) * Examples: ratchet clauses, free rent periods ** Examples: office, data centre, laboratory Resource Management Guide 501 Property Management Planning Guidance 16

19 B2 Property performance * Property utilisation Costs Work practices Environmental Property m 2 / WP m 2 / OWP WP Vacancy (%) Rent/m 2 (p.a) Other property operating costs / m 2 (p.a) Total property costs / m 2 (p.a) Total property costs / OWP (p.a) Total property costs / Total operating costs (%) Desk sharing or formal work from home (%) Energy: MJ / m 2 (p.a) Base Building Energy: MJ / OWP (p.a) Tenancy NABERS Energy Rating (stars) Tenancy and Base Building * A description of these indicators is provided in the table at paragraph 3.5 of this Planning Guidance. Resource Management Guide 501 Property Management Planning Guidance 17

20 Appendix C: Gap analysis better practice template Property details Workpoints Space (m 2 ) Budget Costs * Property Current Shortterm: 1 2 years Mediumterm: 3 5 years Longterm: >5yrs Current Short -term: 1 2 years Mediumterm: 3 5 years Longterm: >5yrs Current Shortterm: 1 2 years Mediumterm: 3 5 years Longterm: >5yrs Current Shortterm: 1 2 years Mediumterm: 3 5 years Longterm: >5yrs * Possible cost inclusions: rent; energy; repair and maintenance; cleaning; car parking; and other costs. Resource Management Guide 501 Property Management Planning Guidance 18