Financial QA for public school portfolio


  • 2016 – 2017
  • Commissioned by City of Rotterdam
  • Investment budget of €200 million
  • Business cases quality assessment
  • Property analysis & assessment
  • Policy advisory for real estate and schooling departments

Summary

The city of Rotterdam has a duty of care for school buildings. The municipality together with the schools in the city expressed the desire to improve the predictability of housing needs. In order to make a proper assessment of the building portfolio the IHP (Integraal HuisvestingsPlan) policy has been established; an investment strategy for the period 2015 – 2019, which indicates which school buildings are addressed at what time. The aim is to provide up to date housing and to make quality and efficiency improvements for future use. The indicative investment agenda provides clarity for both school and municipality. It creates better understanding of future developments regarding the school buildings, and provides a controlling mechanism for the efficient use of property.

A significant part of the Rotterdam school portfolio is out of date. The city council has therefore commissioned a investment budget of €200 million to improve the housing conditions of the 50 schools that need it most. These schools were requested to submit proposals for renovation or new building plans, in the form of current condition assessments, preliminary plans and a business case. The city Department of Education is responsible for controlling the budget and assessment of the plans, and therefore requests specialist advice from the Department of Real Estate.

The city Department of Real Estate has asked DLP to assist in assessing the business cases and construction plans, regarding quality, completeness, consistency, etc. DLP analyzes the current state of the buildings, the plans for renovation or construction, and the financial parameters of the business case. The budget is limited, so choices have to be made in what to invest. DLP advises the Departments of Education and Real Estate on the feasibility and necessity of the proposed investments and works with the schools and the departments to execute the IHP policy.