Understanding the Medium Term Plan

The Medium Term Plan (MTP) is a mandatory document within PAS2035 retrofit coordination that outlines the anticipated sequence, timing and financing of energy efficiency improvements across a building portfolio over a medium-term period, typically 3-5 years. It serves as a bridge between strategic ambition and practical delivery, ensuring retrofit work remains coordinated, financially viable and properly sequenced.

For retrofit coordinators and building owners, the MTP transforms aspirational net-zero targets into actionable, phased delivery schedules. This prevents the common pitfall of ad-hoc improvements that waste capital and fail to achieve cumulative energy benefits.

Purpose and Context

The MTP fulfils three critical functions within PAS2035 frameworks:

• Coordination Function: Ensures retrofit work across a portfolio avoids conflicts, duplicates effort and maximises efficiency gains through logical sequencing
• Financial Planning: Demonstrates sustainable funding mechanisms and budget allocation across multiple years, reassuring stakeholders and lenders
• Risk Management: Identifies dependencies between projects, potential supply chain constraints and staging requirements that could disrupt delivery

The plan also demonstrates to regulators, funders and insurers that retrofit activity is managed strategically rather than reactively.

Core Structure and Components

Portfolio Overview

Begin with a clear audit of all properties or building elements requiring intervention. This should include:

• Current energy performance ratings and thermal characteristics
• Condition surveys identifying structural or systems constraints
• Occupancy patterns and usage intensity
• Listed status, conservation area designations or heritage restrictions

Improvement Roadmap

Detail the proposed improvements clustered by priority and year. Typical groupings include:

1. Year 1-2 (Quick Wins): Low-disruption measures such as controls optimisation, heating system upgrades or accessible external insulation
2. Year 2-3 (Core Retrofit): Significant envelope improvements, boiler replacement or mechanical ventilation installation
3. Year 3-5 (Deep Retrofit/Specialist Work): Complex measures requiring planning consent, specialist contractors or phased occupation management

Sequencing Logic

Explain the reasoning behind proposed sequencing. Common legitimate sequences include:

• Addressing roof works before wall insulation to prevent moisture management issues
• Completing heating system replacement before controls installation
• Staging tenant disruption across different building wings or blocks
• Aligning with planned maintenance cycles to avoid double-handling costs

Financial Planning

Include realistic costings, funding sources and cash flow projections. Document:

• Indicative capital costs per year and per improvement type
• Identified funding mechanisms (grants, loans, in-house capital, carbon credits)
• Operating cost reductions projected from completed measures
• Contingency allowances (typically 15-20% for retrofit uncertainty)

Dependencies and Risk

Map constraints that could disrupt sequencing, such as:

• Supply chain lead times for specialist products
• Contractor availability and capacity bottlenecks
• Planning or listed building consent requirements
• Building condition surveys revealing unexpected issues
• Funding release conditions or grant scheme timelines

Common Errors to Avoid

Chronological Sequencing Without Logic

Simply listing improvements by year without explaining cause-and-effect dependencies creates coordination failures. For example, installing air-tight external insulation before replacing a condensing boiler and ventilation system invites condensation risks. Always justify sequencing.

Underestimating Disruption Timescales

Retrofit coordinators frequently underestimate on-site durations, particularly for occupied buildings. Account for weather delays, discovery of hidden defects, and tenant/occupant management. A wall insulation project should allow 6-8 weeks for a typical medium-sized building, not 4 weeks.

Ignoring Supply Chain Reality

Current lead times for heat pumps, insulation materials and specialist HVAC systems can exceed 16 weeks. Plans must reflect procurement windows, not assume immediate material availability. Build procurement lead times into sequencing.

Vague Funding Commitments

Stating "funding TBC" undermines credibility and prevents realistic delivery. If funding remains uncertain, clearly state the financial threshold needed to trigger each phase and expected decision timelines.

Overlooking Heritage and Planning Constraints

Many retrofit coordinators produce plans requiring planning consent or listed building approval without securing pre-application advice. This delays delivery by 6-12 months. Identify regulatory constraints early and build consent timescales into sequencing.

Neglecting Tenant or Occupant Engagement

For occupied buildings, the MTP must reflect reasonable notice periods, relocation planning and disruption mitigation. Failing to coordinate occupant movements with improvement sequencing creates resistance and project delays.

Documentation and Review

The MTP should be documented clearly, ideally in a visual format combining timeline diagrams with supporting narrative. Review and update annually or when circumstances materially change, such as funding delays or supply chain disruptions.

Ensure all stakeholders—building owners, finance teams, contractors and funders—sign off on the finalised MTP before committing capital or procurement activity.