Key Findings
In general terms the overall condition of QUT’s built assets has remained relatively unchanged since 2001, with a small reduction in total backlog liabilities from $37.4M to $35.6M (in 2006 dollars). Whilst the backlog has remained constant, however, the risk profile has improved significantly. During the period 2001-2006 compliance-related liabilities decreased from a total of $19.3M to $9.1M and the proportion of extreme/high risk works dropped from 25% of total compliance liabilities to 6%. A similar improvement was achieved under the backlog maintenance category where extreme/high risk works dropped from 15% of total backlog to 6%. All high risk works identified during the survey are scheduled for completion by early 2008 and other lower risk liabilities will be regularly monitored.
The 2006 facilities condition survey identified $62.3M of capital renewal needs over the next fifteen years, a level consistent with the findings of the 2001 survey. QUT currently provides $3.65M/annum to address backlog maintenance and capital renewal needs and together with the beneficial flow-on effects from capital refurbishment projects total backlog liabilities are likely to remain around the $36M mark, or 4.5% of the university’s asset replacement value (ARV). Given the risk profile of the backlog this is both reasonable and manageable.
A fourth area covered by the survey was the functionality of space, as rated by key stakeholders. Overall there was little perceived change in the functionality of university space between surveys though some organisational areas did report deterioration in the functionality of their spaces.
The final component of the 2006 survey was a revaluation of assets, which saw the value of QUT buildings and infrastructure escalate markedly from $427M in 2001 to $784M (excluding IHBI and SLSC) in 2006. The extraordinary jump in values was due mainly to Queensland’s booming building industry and associated resource and skill shortages, which fuelled a 67% increase in the Building Price Index (BPI) in the five year period to 2006.
A summary of all key performance indicators (KPIs) compiled during the survey can be found in Appendix A of the Master Report
Summary
The 2006 facilities condition survey has identified $36M of backlog maintenance and compliance liabilities. The vast majority of these building defects or deficiencies (96.5%) have been risk assessed as moderate or low and pose no immediate threat to the university. The $2M of high risk works identified has been further assessed and plans are in place to address these by early 2008.
At current funding levels the balance of backlog maintenance and compliance liabilities is likely to remain around $36M, though continuing escalation of the BPI will put further pressure on maintenance budgets and may well challenge this assumption.