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The PRIME contract: The Department of Social Security and Trillium

The PRIME contract: The Department of Social Security and Trillium The PRIME contract is revolutionising the property industry. It has enabled the UK Government’s Department of Social Security to outsource not just its facilities management and property management but also its entire property portfolio and the risks associated with it. PRIME will provide the Department with 22 per cent cost savings over the life of the contract, give it the flexibility to downsize its portfolio to 60 per cent of its original size and replace hundreds of separate service provision contracts with one service provider, Trillium. Trillium is one of the new types of property service providers who are taking advantage of the historical failure of traditional property owners to give occupiers what they want in terms of service and flexibility. The implications for corporate real estate are enormous ‐ who better to deal with occupier problems like surplus space, flexibility, property market risk and service quality than the supply side of the industry. The potential benefits for those property providers on the supply side who are positioned to take advantage are substantial ‐ instead of just rental income from one property for one occupier, there is the opportunity to capture all occupancy cost revenue for an entire portfolio. The occupier can potentially save costs, increase flexibility, reduce risk and more closely align its corporate real estate with its business strategy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Corporate Real Estate Emerald Publishing

The PRIME contract: The Department of Social Security and Trillium

Michael Evans
Journal of Corporate Real Estate , Volume 2 (3): 13 – Jul 1, 2000
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Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
1463-001X
DOI
10.1108/14630010010811356
Publisher site
See Article on Publisher Site

Abstract

The PRIME contract is revolutionising the property industry. It has enabled the UK Government’s Department of Social Security to outsource not just its facilities management and property management but also its entire property portfolio and the risks associated with it. PRIME will provide the Department with 22 per cent cost savings over the life of the contract, give it the flexibility to downsize its portfolio to 60 per cent of its original size and replace hundreds of separate service provision contracts with one service provider, Trillium. Trillium is one of the new types of property service providers who are taking advantage of the historical failure of traditional property owners to give occupiers what they want in terms of service and flexibility. The implications for corporate real estate are enormous ‐ who better to deal with occupier problems like surplus space, flexibility, property market risk and service quality than the supply side of the industry. The potential benefits for those property providers on the supply side who are positioned to take advantage are substantial ‐ instead of just rental income from one property for one occupier, there is the opportunity to capture all occupancy cost revenue for an entire portfolio. The occupier can potentially save costs, increase flexibility, reduce risk and more closely align its corporate real estate with its business strategy.

Journal

Journal of Corporate Real Estate – Emerald Publishing

Published: Jul 1, 2000

Keywords: Private Finance Initiative; PRIME contract; Department of Social Security; Trillium; Outsourcing; Strategic alliance

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