University saves over 拢4m on two halls of residence after forming own construction company

Liverpool university Greenbank

Liverpool University is planning to build a major part of its 拢100m-a-year capital spending programme in-house after forming its own construction company.

The university is considering giving more work to its in-house special projects team, which was formed in 2013 when the university took on staff from failing contractor Ocon. Ocon鈥檚 parent company was facing administration at the time and the university鈥檚 拢63m Crowne Place student halls scheme was being built by Ocon.

The university-owned company that was formed - University of Liverpool Construction Company Special Projects Ltd (ULCCO-SP) 鈥 has since completed the Crowne Place scheme and a separate 拢9.1m refurbishment of 103-bed student halls Melville Grove.

The university is now lining up the company to build its planned 拢90m Greenbank Halls project, which gained planning consent earlier this month, and a separate 拢25m teaching facility.

Patrick Hackett, Liverpool University vice-chancellor, told 好色先生TV the university had estimated that by using an in-house builder it had saved 拢2.5m on the cost of the Crowne Plaza scheme and 拢2m on the cost of the Melville Grove scheme through 鈥渧alue engineering鈥. Hackett said he hoped to make similar savings on upcoming schemes by using ULCCO-SP, including Greenbank Halls.

Demolition has already started on site to make way for Greenbank Halls and the university is inviting subcontractors to express interest in the scheme, which will deliver 1,370 new or refurbished student rooms and a two-storey sports hall on the 20.8 acre site.

Hackett said Liverpool University decided to take on Ocon鈥檚 staff and bring the work in-house after becoming aware of up to 拢1m of extra costs and up to a year of delays if it was to retender the work externally.

Hackett said: 鈥淭he university was approached by subcontractors after it formed ULCCO-SP as it was seen as a sound employer. Other universities have asked anecdotally about forming internal companies.鈥

Asked if ULCCO could expand beyond Liverpool University, Hackett said: 鈥淲e assured the University Council we would not to sell construction services outside the university, there鈥檚 no reason why we couldn鈥檛 but it鈥檚 a choice we鈥檝e made not to.鈥