Capital projects are said to develop organisational capability but unexpected events at FACT developed the organisation’s capability in a very unusual way. Susanne Burns explains.
The launch of the FACT Centre in February 2002 was a highly charged occasion. The FACT Centre had been a dream for over eight years and its eventual realisation was the culmination of a great deal of hard work on the part of many people.
FACT is unique. No other UK arts centre offers the same range in its programme, resources and activities. Two gallery spaces, three cinema screens, a Media Lounge, a multi-purpose sofa screen, a café and a bar form the front of house and this facility is backed with a media lab, digital mastering suite, resource suite, workspaces and office space. Liverpool’s first purpose-built cultural project for over 60 years, FACT played a significant role in the success of Liverpool’s bid to become Capital of Culture 2008 and provides a vibrant focal point in the £110m redevelopment of the Ropewalks district. A public-private sector operating partnership with City Screen, £10.5m of public funding and support from English Partnerships, Granada Foundation and the PH Holt Trust brought the dream to reality.
However, all was not to remain so happy! At 2am, on April 10 2003, less than eight weeks after the official opening of the building, part of the ceiling in Screen 3 collapsed. The management was forced to close the three screens pending a full investigation of the problems. The disappointment of our audiences was matched only by that of staff, board members and funders as we struggled to identify the cause and secure a programme of work which would allow us to reopen.
We took the only responsible course of action open to us, commissioning a series of extensive investigations and independent reports which meant that the entire building will not be fully operational until mid-November 2003. Six months’ closure, significant loss of revenue and the subsequent public relations issues have taken their toll. So what went wrong? And, perhaps more importantly, what lessons have we learnt which might assist others?
Lessons to learn
Stephen Frame, the Capital Development Manager for FACT, offers some interesting observations on the entire capital process. “It goes without saying that you learn a huge amount by steering an organisation through a capital project and perhaps inevitably at the end you ask yourself what you might have done differently.” His reflections on the lessons learnt are illuminating. “Perhaps the major lesson we learnt is that damage caused by latent faults in either the design or construction of a new building are excluded from most building insurance policies. In other words, unless you take out specific cover – and you can only do so before entering into contract with a builder – if your ceilings collapse, you have no cover whatsoever from your insurers. The costs of such ‘latent defect cover’ might seem high at the start of a project, but from the position where FACT is at present, they are negligible”.
The challenge for clients in delivering a new building lies in developing a strategy that allows a high level of certainty at the outset. Traditionally, a client approaches an architect, who completes the design of the building, only then is a builder appointed to work in accordance with the design. For a complex building this traditional approach creates problems and cost variations. One of the most effective ways of accurately pricing the risk in a project is to get a builder involved as a design consultant to work alongside the architect before appointing a contractor. This offers the opportunity to identify and design out unnecessarily complex construction in a job before starting on site. Normally the same builder will then bid to act as contractor on the completed design. Having a contractor who has contributed to the development of the design before pricing to deliver it is of enormous benefit.
A different approach
Lessons were also learnt on the PR front. From the beginning we remained committed to clear and honest communication with all stakeholders. Engaging people in the process and ensuring they were as well informed as possible was something we held paramount. Key stakeholders were able to achieve a great deal for us if they knew what was happening, though keeping our 2,300 members informed and ensuring staff were briefed took a great deal of time. Matters of liability and potential legal action meant we were not always able to communicate as openly as we wished however, and a delicate balancing act ensued as we tried to be honest and transparent whilst taking care not to jeopardise our position. Internal lines of communication had to be established to ensure a rapid response. Public communications were channelled through a few people to ensure consistency was achieved. However, advice from many others in drafting our written communications and briefings proved invaluable. Every word had to be carefully chosen, so we rehearsed different scenarios and pre-prepared statements for the organisation’s representatives. This created a safety net and engendered confidence internally. None of this prevented a ‘FACT in cash crisis’ headline on the front page of a local newspaper, but a rapid response enabled this to be managed.
We are still in the throes of establishing liability for the collapse but are optimistic that, once liability is proven, any costs associated with the rebuild and the associated losses to which we have a right will be recovered. The needs of our customers have been paramount throughout and with the support of our funders we have secured loans to enable us to carry out the necessary work as quickly as possible to minimise disruption.
Steve Frame is Capital Development Manager at FACT
t: 0151 707 4401;
e: centre@fact.co.uk
Susanne Burns is Development and Communications Director
t: 0151 707 4402;
e: burns@fact.co.uk