2. INVESTMENT (continued)
2.2.2 Could the Department provide a
commentary on publicly funded capital projects where there are
significant discrepancies between original estimates of completion
dates and/or expenditures and current estimates? (Q11)
ANSWER
PENNINE ACUTE
HOSPITALS
The delay to the estimated completion date is
due to the Full Business Case approval being granted later than
originally anticipated, which led to a delayed start of the construction
works. The Main Contractor, however, is currently ahead of the
contract programme, and an overall project underspend is currently
forecast.
South Manchester UHT Breast Care and Cancer Prevention
Centre—Wythenshawe
This project is forecast to be delivered 16
weeks earlier than the original estimated date. This significant
time saving has been achieved by authorising design and enabling
work at an early stage, thus allowing work to start on site earlier
than originally planned.
South Manchester UHT Cardiac Improvements—Wythenshawe
A slip in the original estimated completion
date is due to a delayed start of construction works. This delay
was caused as a result of the Full Business Case approval being
granted three months later than originally anticipated. The project
is currently forecast to be delivered within its original budget.
South Tees Hospitals Trust—Friarage Hospital
main development
The original contract programme has been delayed
due to variations on the original construction works. An additional
26 weeks was required for additional demolition works of the vacated
accommodation, the provision of additional car parking and for
further design development required after the discovery of contaminated
land. Despite this delay, the project is currently within budget.
Bradford District Care Trust
The original estimated completion date has slipped
because of a delayed start on site which was due to complications
over the transfer of the site to the Bradford District Care Trust.
The original building programme of 13 months remains on track.
Mid Yorkshire Hospitals
This project consists of a large number of enabling
work packages. Unforeseen problems in modifying existing services
in some buildings, the removal of asbestos, the implications of
planning requirements, and VAT recovery issues have all contributed
to an overall increase in the estimated cost.
Kettering General Hospital: Treatment Centre
The time delay and cost overrun are due to poor
performance by the Main Contractor and the design team. Efforts
are under way to resolve existing problems and to mitigate any
delays.
Birmingham Children's Hospital NHS Trust
The contract delay and an estimated cost increase
have both been caused by the need to appoint a new Main Contractor
to complete the works. The completion contract, which has been
agreed with the new Main Contractor, is currently running to time
and cost, with an expected completion date in May 2007, 11 months
later than the original estimated date.
Burntwood, Lichfield and Tamworth PCT: Lichfield
Community Hospital
The original estimated completion date has slipped
because the construction works started later than expected. This
was due to a delay in the demolition of existing hospital buildings,
which needed to be cleared from the site.
Whipps Cross University Hospital
This project is currently considerably over
time and over budget. The major elements of the overspend relate
to costs associated with the delay to completion of the project,
costs associated with rectifying aspects of the project, and the
suitability and adequacy of the contract administration procedures.
The Trust has commissioned an audit report on
the failings of the project and is acting upon the recommendations
of this report.
Central and North West London Mental Health NHS Trust
This has been a complex project which was designed
to move services from accommodation no longer deemed appropriate
for this client group. The main delays, in the view of the Trust,
appear to be due to the completeness of design information and
how this was appropriately communicated consistently to the various
building contractors employed to undertake the work. This view
is not shared by the design professionals involved.
The Trust identified the potential for delay
and overspend in 2004 and engaged professional advisers to assist
in mitigating the impact.
North West London Hospitals
The Trust commissioned external auditors Deloitte
& Touche to undertake a review of the delivery of this project.
The review identified key areas for improvement and the implementation
of an action plan has been agreed by the Trust Board and is currently
being reviewed by the Trust with NHS London.
The main areas relate to poor governance, performance
and communications issues with contractors and design teams, and
unsuccessful contract management processes.
Crawley Hospital refurbishment at six locations
The original estimated completion date has slipped
due to a delay in work starting on site. This delay was necessary
for a review of contracts to be undertaken following recommendations
made by the Gateway review.
2.3 Private Finance Initiative (PFI)
2.3.1 Could the Department provide expenditure
profiles of capital expenditure on PFI schemes from 1997-98 onwards
by (a) region and (b) scheme by broad capital cost of scheme?
(Q12)
ANSWER
1. The information requested is given in
Table 12a to Table 12k.
2. The expenditure profiles in the tables
take into account the reduced capital values at the six PFI review
schemes announced on 18 August. These were at Salford, Tameside,
Leicester, Walsall, South Devon and North Staffordshire. The Department
are in the process of reviewing the remaining PFI Schemes with
values in excess of £75 million.
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