Dr David Crosthwaite, chief economist at the Building Cost Information Service, comments on British Culture Secretary, Michael Gove's rejection of plans by retailer Marks and Spencer to redevelop its flagship Oxford Street store.
With a growing number of buildings requiring retrofitting or replacing to meet current standards and client expectations, the decision about M&S in Oxford Street highlights the need for the industry to develop the skills and commitment to assess each building or project individually to make better, informed decisions regarding cost and carbon calculations.
Taking a traditional life cycle cost approach probably favours rebuilding, while life cycle carbon calculations are more likely to come down in favour of refurbishing existing buildings.
However, it may not be possible to refurbish some buildings to meet the required standards.
The industry will also need to invest in skilled labour to deliver the high level of upgrades needed across domestic and non-domestic buildings.
The average cost of refurbishment projects is generally about 60 per cent of new build projects of the same type of building.
There are many reasons for this but it also probably reflects the point at which new buildings become more attractive in cost terms.
Accounting for the carbon may well change this.
