Starting your own vet practice: dreaming the possible

Well-designed premises are to a practice what clothes are to a person; they determine how it looks and functions. But just as a person changes throughout their life, so do the demands and needs of a practice. Sometimes the adaptations required are minor, but in many cases a move to different premises is necessary.

Alex Darvill, managing director of ACD Projects, noted a buoyant profession where “activity is certainly upward and there is a noticeable incline in the veterinary market”. He said that “even now, some two to three years after the pandemic, we are seeing a distinct increase in practices engaging in building projects”.

In fact, he has vets looking to expand, “particularly if they have the space available to them at their current practice and they acquired the practice knowing there were expansion options available to them”.

Paul Wood, managing director of Vantage Building Consultancy, said that with construction prices up around 15% compared to 2021, and the risks being high when managing works, “many practice operators and owners are staying put and looking to improvements over rebuilds or extending”.

He said: “Everybody likes to dream big and would love to own or have a state-of-the-art facility, but the cost reality does make many think twice.”

Now, that’s not to say that vets aren’t relocating, but relocation is a difficult decision due to funding issues, and the potential for client loss. But Alex said: “There is financial support out there, and most vets will have loyal clients follow them.”

The decision to move, though, tends to reflect the state of the existing building, space for staff and the economic sense in retaining or adding to it.

But when it comes to refurbishment, Paul said: “There’s a need for larger-scale refurbishment and development, and those who do will reap the benefits.” He does, though, find that energy use and the impact of the Minimum Energy Efficiency Standards are market moving factors “with significant changes to EPCs [energy performance certificates] including a phased implementation to raise the minimum standard – currently an E – to a B EPC rating by 1 April 2030”.

That said, Paul said the reality is less stark: “Buildings can be improved and adapted, sometimes with ease. But a real opportunity exists to those willing to invest and refurbish or develop a new facility to best serve their clients/staff with reducing energy costs and carbon savings.”

Nailing down the essentials

Practices looking to move often have a wish list of important features. For Alex, car parking is essential because “when staff numbers and clientele increase, car parking is simply not something that is easy to generate if you haven’t got the space”. He said: “That’s why moving to new premises with ample parking is sometimes a more appealing proposal.” He added that local authorities are also hot on parking when it comes to planning, so “there is little to no benefit from sourcing a building with insufficient parking options”.

This point is tied to location – a point that Paul homes in on and expands by talking about electric vehicles (EVs).

He said: “Whatever your personal viewpoint, plug-in cars are here to stay and for the next 20 years will be mainstream. Practices need EV provision for staff and clients. Early adoption in this area will reap rewards and could earn a practice £10,000 if they independently install EVs.”

Another key vital component is space for growth. While acquiring a property larger than is needed can be unnerving, leasing out additional space is a better alternative than having nowhere to go and starting again if the practice does incredibly well. Indeed, Alex can’t stress enough to practices to “prepare for future rooms in initial layouts and make sure these can easily be incorporated”.

Paul suggested the process is all about risk management where good design addresses key factors and looks to manage them – be it budget generally, energy use or parking. He said: “You can never remove risk in construction or property, but you can control and minimise it through early advice and planning.”

Grand designs evolving

Design is in a perpetual state of flux with changing needs, different outlooks and, of course, new technologies to accommodate. Indeed, Alex is seeing more CT scanners going into buildings along with MRIs, too. And due to advancements in animal behaviour research, changes in design have been introduced to reduce their stress.

He has practices now with no mixed species wards, wards where animals are facing one another, or mixed waiting areas. He added: “There have also been enhancements in biosecurity – for example, isolation for cats and dogs, and each pen now having individual drainage to mitigate cross-contamination.”

Paul and Alex both put clients and staff at the heart of decision-making, and are seeing biophilic design and wellness as key trends. Paul explained: “This means designers focusing on environments that promote a positive experience including health, well-being and connection to nature.” In essence, biophilic design principles incorporate natural elements and patterns into buildings to enhance mental and physical well-being for clients and staff.

Allied to this is the matter of energy usage and net zero along with the need to comply with building regulations and planning requirements. These, said Paul, lead the selection of energy efficient and sustainable materials. In fact, he reckons that well-designed and energy-efficient buildings are also worth more in capital values and rent: “Studies by CABE [the Chartered Association of Building Engineers] have shown people work 77% more productively in well-designed offices and the RICS [Royal Institution of Chartered Surveyors] has adopted a valuation approach to include criteria for sustainable buildings.”

Energy efficiency and sustainability are key concepts for Alex, too, with more natural lighting systems being introduced into schemes. But where artificial light is used, he said that they are “more LED-based with minimal impact on energy consumption and cost, and are often paired with motion sensors to limit unnecessary usage”.

It may surprise some that a building doesn’t have to be owned to be improved. Here, Paul said that landlords need to work with practices and thinks “rentralised improvements” may be a solution. He gives the example of solar panels where the landlord sells energy back to a practice at an advantageous rate.

New or old?

Now to the conundrum – build from scratch or move to a refurbished unit? On this Alex reckons that new does not always mean a higher cost than a refurbishment. There are “the disruption and financial implications that renovation/refurbishment can have on a business” to consider. He also thinks that “a blank canvas that causes a minimum of disruption to the vet could be worth a lot to any busy practice”.

That said, Paul feels that reuse and extension are the more sustainable options. However, he emphasises that “the correlation between cost and asset value should be reviewed to make sure there is a payback”.

But a new build can be expensive; it’s the hidden elements that can cost the most such as water, power and gas, which can be very expensive to introduce or upgrade. However, Alex said that he has worked with an empty shell provided by a landlord or developer on a long lease, and “this has worked well financially for some of our clients”.

Nonetheless, as Paul said, to convert or develop is quite a personal thing and practice owners need to do what they feel is right for them, too – “some are very attached to their property while others may use redevelopment as an opportunity to rebrand or relaunch”.

Getting planning authorities onside

Planning rules have been with us since 1909 and in earnest since 1947. To have plans agreed means that applicants need good communication with both their planning authority and planning consultant. Alex explained: “At the end of the day, the planning decision can make or break a project. Due to extensive waiting times across the country – both for pre-application and planning – we tend to recommend going straight for planning.”

Paul doesn’t disagree; he’s also seen a negative outcome stop a project in its tracks: “Objections are commonplace. You rarely get a design right on the first go and local authority input should not be viewed negatively – more as a tool for best practice. We like to embrace it and, if required, get good help from external planners who know the system.”

Alex warned that practices should be prepared for additional planning costs for additional surveys – particularly if building new. He said to “never ignore the need to obtain a change of use application or a Certificate of Lawfulness and assume that you can convert a building without permission”.

Controlling costs

Good cost control is critical and whether a new or established practice provision should be made for the unexpected, as well as for a general increase of costs. Paul sees volatile construction prices at present with more competition in the marketplace and tender variances of between 15% and 20%. In his estimation, this makes it “an opportunity, but risks need to be managed such as contractor or sub-contractor insolvency”.

Nevertheless, Alex encourages practices to spend a little more if they can, on the right materials and the right surfaces and finishes: “We often say that it’s better to spend a little more now and use hard wearing PVC wall cladding, than having to repaint the walls annually, or opt for stainless steel over plastic for kennel cages for example. Flooring too should be of a good quality, durable material rather than a cheaper brand, which will let you down much sooner than a reputable finish.” You will not want to be ripping up the floor and replacing it once the business is back up and running.

Similarly, Paul reminds that one fundamental area that should be considered more is heating and cooling. He explained: “This is often overlooked and retrospective works to improve it both for users and energy efficiency can be costly.”

Alex added that “the mechanical and electrical elements of a project are now contributing to almost half of the total cost” and therefore he is seeing more clients taking things such as air con out. He said: “Although this is seen as an initial upfront saving, this can add more expense in the long run, as practices then install individual systems that are ultimately more costly to run.”

Lastly, practices need to be forward looking. Here, Alex makes a key point: “Try think of the future; build with at least a 10% capacity for increase in size within the first five years. And remember, a practice does not have to be completed all in one go, you can phase your works to allow for an increase in staff, or an increase in clientele, or new disciplines added to the practice.”

Summary

Practices should not underestimate the amount of time and effort required to create a good working facility alongside their day-to-day role. In other words, a good project manager is essential.