Network error?

Most commercial clients think long and hard before selecting a builder, then give great consideration to the general fit-out of new or refurbished office space – in fact, the hours devoted to decisions about carpet colour and desk size occasionally surprises even the most seasoned QS. But when it comes to the IT fit-out, who takes the decision about procurement?

Given the hefty costs associated with IT – a recent fit-out at Canary Wharf, for example, cost £25m, more than 40% of the total £60m fit-out price – it should surely be integral to the scheme as a whole. Commercial clients need someone who will not only provide the best IT solution at the right price, but will also ensure that it integrates successfully with the rest of the project.

But back in the real world, what actually happens is that the job will go to the M&E contractor. Or to the fit-out contractor. Or to an external IT consultancy. Or to good old Wiggins, who's spent the past five years sitting in the client's server room and occasionally fiddling about under the desks.

As Peter Sell of Davis Langdon puts it: “Quality contractors and fit-out specialist have their work down to a fine art and can offer genuine price and programme guarantees. But when it comes to IT, many clients can lose control of what is potentially a very costly element of their move. It seldom gets the priority it deserves.”

Working together

The success (or not) of the IT fit-out, says Sell, often depends on the interface of responsibilities on site. “For example, IT consultants may be able to design a great IT system, but lack the project management and construction knowledge to ensure the IT elements fit smoothly into the project as a whole,” he explains.

“Their interest is in function, not implementation, so while they may specify the right kit, will it be delivered on time? Do they appreciate that if it isn't, fit-out or construction costs may rise?”

There can be problems, too, with clients who prefer to leave IT to their in-house experts, Sell adds. “This works well for large clients such as banks, who have substantial in-house expertise, but the IT people in a medium-sized business may lack the capacity to manage an IT move.”

Leaving it to the in-house ‘IT guy’ can certainly be a false economy, agrees Richard Sadd, financial director of fit-out specialists Skansen. “It is one thing to maintain a system; quite another to relocate it,” he points out. “We often find ourselves filling in gaps for clients.”

Skansen recommends that clients use consultants with specialist move management skills. “These people are much more than packers and deliverers,” says Sadd. “We often work with Henley-based MWA, for example. It has proper project management expertise and is skilled in both M&E and IT implementation.”

Such outfits are best introduced into the move at an early stage, he adds, though he reports that clients are often unwilling to price for this at tender stage. “I can see why they don't like the sound of another fee, but it is far preferable to switching on in your new office to find nothing happens,” he says.

Sadd agrees that the efficiency of the IT fit-out will inevitably depend to an extent upon who is ultimately in charge of the process and who is paying whom – a point underlined by Clive Patience, contracts services manager with leading London fit-out contractor Overbury. “Larger clients often employ their own preferred IT installer direct, believing they will get better value by using them regularly,” he says.

“In some cases this might be true, but in others we have seen that familiarity with the client can lead to a lazy approach from the IT firm. Are they really providing what the client needs or simply what they had last time? And are their prices as sharp as they might be, given that they know they will get the next job anyway?”

If we employ IT firms directly, it means we’re in a position to insist their work fits efficiently into the overall fit-out

Clive Patience, Overbury

Who takes control?

Patience says while Overbury is happy to work with directly employed IT firms, “they can fall back on their relationship with the client if things go wrong, whereas if we employ them, we’re in a position to insist that IT work fits efficiently into the overall fit-out – and that is to the client's benefit in the end”.

This observation is reinforced by the director of a medium-sized practice who claims his firm is increasingly asked by clients to look at IT spend. He cites the example of when his own firm bought monitors for new premises, at a significantly cheaper price than one of his major corporate clients, who buys them by the thousand every year. “I get a bit fed up," he says. "We have to take close control of the construction costs, but it doesn't seem to be the same case for IT. Contingency costs for IT are probably double that of construction.” And he reckons that IT costs could be slashed by about 40% if the same disciplines used for construction were transferred to IT.

Of course, there is more to IT than cost. If new IT is to be fitted to an existing building, the client's priority should be to make sure the building is suitable, says Brian Hudson, principal engineer with Atkins Telecoms. “Ideally, clients should seek advice before signing a lease," he warns. "IT has evolved a lot and you can’t be sure new premises can accommodate your IT needs.”

Atkins Telecoms carries out due diligence investigations on prospective premises, a process that, Hudson says, has saved his clients considerable sums. “We look at a range of issues, starting in the street outside,” he says. “Is there broadband? Is it BT or cable? If the client requires it, is there dual underground duct entry for resilient connections?”

Moving into the building, Hudson continues: “Is there sufficient clean power? An uninterruptible power supply? Is there sufficient riser capacity for inter-floor connectivity? Is there an existing server room with proper cooling? Are there decent false floors? Is the air conditioning up to the job?”

He adds that, since most IT systems are business critical, it's wise to give careful consideration to the exact location of vital IT elements. “Are the servers safe from flooding, and what about fire protection?” he asks. “In, areas such as the City, you need to think about blast protection and proximity to windows.”

Expensive mistakes

Fail to carry out such checks, says Hudson, and the client can pay dearly. He cites one of Atkins' own moves to Euston Tower as an example. “We discovered the risers were full and we needed to construct a new 'chimney'," he says. "Because we found out in time, we were able to freeze the lease signing until the issue was resolved and the owner had agreed to contribute to the bill for a new riser.” He concludes, “The wrong building for your IT can cost millions over the course of a lease.”

In the future, IT fit-outs may not be so complicated. Increasing bandwidths for broadband-based systems, faster wireless connections and remote server facilities may mean fewer cables and less hardware situated on the client's own premises.

Until then, however, IT fit-out will remain a complex, expensive process that is critical to clients' business success. And Davis Langdon, for one, is convinced that clients could often be better served by a team that combines QS, IT, and project management skills. It is setting up a dedicated IT project and cost management team to fill what it perceives as a gap in the market. Will others follow suit?