Archial, one of the country’s largest architectural practices and a member of the global Ingenium Group of companies, has given a cautious welcome to the Scottish Government’s commitment to take forward a major new pipeline of transport, education and health infrastructure projects, worth up to £2.5 billion through the Non-Profit Distributing (NPD) model as announced in its 2011-12 Draft Budget.
However, Bob Hall, Joint Managing Director at Archial, warned that, given that the Scottish Government’s capital budget will fall by some £800 million in cash terms next year, compared to 2010-11 – representing a real terms cut of 26 per cent – cuts on capital spending will mean that the economic environment for architects in Scotland will remain challenging throughout this period.
The Scottish Government’s 2011-12 Draft Budget proposes major investments to support national infrastructure priorities, including initial work on the new Forth Crossing, investment in the South Glasgow Hospitals – both to be delivered through traditional capital funding – and Scotland's Schools for the Future building programme.
In addition, Ministers propose a new pipeline of revenue-funded NPD investment to be delivered by the Scottish Futures Trust in partnership with the Scottish Government, local government, NHS boards and other public bodies.
Mr Hall said: “Whilst Finance Secretary John Swinney’s response to a deep cut in Scotland’s capital budget by transferring £100m from this year’s current expenditure to next year to supplement capital spending is to be welcomed, it is evident that architects will be required to respond to the new economic reality within which we operate by thinking creatively to identify innovative ways of achieving clients’ goals and seeking solutions to their various challenges.”
Archial is an international architectural specialist with public and private-sector clients. Its diverse portfolio includes work in corporate, education, government, healthcare, industrial, mixed-use, residential, retail and transport sectors and it employs approximately 300 employees in offices throughout England and Scotland. The award winning Archial organisation is recognised for delivering intelligent solutions that combine creative excellence with commercial success.
For further information please contact Bob Hall T: 0141 204 6500
Issued on behalf of Archial by Liquorice Media tel 0141 561 4018 www.liquorice-media.com
Date 19 November 2010
Notes to Editors
- The NPD model aims to retain the benefits of revenue finance such as optimal risk allocation between the public and private sector partners and performance based payments while removing the potential for excessive profits that were seen under some of the original PFI deals.
- It is defined by the broad principles of: enhanced stakeholder involvement in the management of projects; no dividend bearing equity and capped private sector returns
- The NPD model eliminates uncapped equity returns which were a feature of PFI projects. Any operational surplus generated is reinvested in the public sector in accordance with priorities agreed with the contracting authority. Stakeholder involvement in the NPD model is ensured through a Public Interest Director, helping to create a more stable partnership between the public and private sector.
- Delivering global building solutions, the 900 employees of the privately held Ingenium Group of companies offer an extensive range of architectural, engineering, land use and development planning, interior design, project management, construction, design-build and partnership services through offices in Canada, the United Kingdom, the United States, the Middle East, and Asia. It has a broad and diverse portfolio of completed work within the commercial, government, transportation and lifestyle sectors, comprising some of the largest building projects in the world. The Ingenium Group member company brands include Archial, Alsop Sparch, NORR, Giffels, CION and Westpro. For more information: www.theingeniumgroup.com.