Valuing Design Quality

34  Design quality is an important element of all public sector building projects and should be assessed during appraisal. Limiting property valuation to traditional methods without consideration of the costs and benefits of design investment can distort the decision making process. Good design will not always result in the lowest initial capital cost. However, over the period of the contract a higher initial investment can, when expressed as a discount value, result in the lower whole life costs.

35  The benefits of good design include:

  Simplification and savings in cost, by ensuring that capital costs are competitive and that savings can be achieved on running costs;

  Increased output and quality of service through enhancement of the environment in which a service is provided; and

  Staff recruitment and retention.

36  Where good design has a direct economic impact, such as staff retention or patient recovery times, it may be possible to calculate the costs and benefits directly. However, it is often difficult, if not impossible, to calculate the monetary value of many of the benefits of good design, such as civic pride, educational achievement or user experience. In such instances, it may be necessary to use contingent valuation or a similar technique. For smaller projects, where contingent valuation may prove too complicated, research studies can help with comparisons and benchmarking to ensure good design is accounted for.

DETAILED GUIDANCE ON EVALUATING AND DELIVERING DESIGN QUALITY CAN BE FOUND IN:

  The Value of Good Design, CABE

  Achieving Well Designed Schools Through PFI, CABE

  Better Civic Buildings and Space, CABE

  Treasury Guidance Note 7: How to Achieve Design Quality in PFI projects

  Improving Standards of Design in the Procurement of Public Buildings, CABE/OGC

  The CABE website (http://www.cabe.org.uk)