| Risk Heading |
Definition |
| Incorrect cost/time estimates | The cost/time taken to complete the construction phase may be different from the estimated cost/time.
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| Unforeseen ground/site conditions | Unforeseen ground/site conditions may lead to variations in the estimated cost
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| Unforeseen ground/site conditions under the foot print of the existing facilities
| Addition costs resulting from where the private sector is unable to carry out necessary surveys prior to commencing work because facilities are currently occupied
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| Delay in gaining access to the site | A delay in gaining access to the site may put back the entire project
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| Responsibility for maintaining on-site security
| Theft and/or damage to equipment and materials may lead to unforeseen costs in terms of replacing damaged items, and delay.
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| Responsibility for maintaining site safety |
The Construction, Design and Management (CDM) regulations must be complied with during the construction phase of the project.
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| Third party claims | This risk refers to the costs associated with third party claims such as subsidence on adjacent properties or in injuries to visitors to the hospital.
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| "Delay Events" (These are those which the trust is responsible for and not, for example, delay because the ground is frozen so they can't build)
| An event of this kind may delay or impede completion of the new building.
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| "Compensation Events" | This is a Delay event which also causes the building contractor additional expense as well as delay.
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| Force Majeure + | In the event of Force Majeure additional costs will be incurred. Facilities may also be unavailable.
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| Termination due to force majeure + |
There is a risk that an event of force majeure will mean the parties are no longer able to perform the contract.
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| Legislative/regulatory change: NHS Specific
| A change in NHS specific legislation/regulations (including NHS policy or guidance) leading to a change in the requirements and variations in costs.
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| Legislative/regulatory change: non NHS Specific
| A change in non-NHS specific legislation/regulations leading to a change on the requirements and variations in costs.
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| Changes in taxation | Changes in taxation may affect the costs met by the NHS.
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| Changes in the rate of VAT | Changes in the rate of VAT may increase the costs of the project. VAT should generally be refundable to the NHS Trust
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| Other changes in VAT | Changes in VAT legislation other than changes in the rate of VAT payable
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| Contractor default | In the case of contractor default, additional costs may be incurred in appointing a replacement, and this may cause a delay.
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| Poor Project Management | There is a risk that poor project management will lead to additional costs. For example, if sub-contractors are not well co-ordinated, one sub-contractor could be delayed because the work of another is incomplete.
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| Contractor/sub-contractor industrial action
| Industrial action may cause the construction to be delayed, as well as causing additional management costs.
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| Protestor action | Protestor action against the development may incur additional costs eg security costs
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| Incorrect time and cost estimates for decanting from existing buildings
| The estimated cost of decanting from existing buildings may be incorrect, there may also be delays leading to further costs.
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| Incorrect time and cost estimates for commissioning new buildings
| The estimated cost of commissioning new buildings may be incorrect, there may also be delays leading to further costs.
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