Our Hospital project costs

WQ.461/2021

WRITTEN QUESTION TO THE ASSISTANT CHIEF MINISTER BY DEPUTY I. GARDINER OF ST. HELIER

QUESTION SUBMITTED ON MONDAY 15TH NOVEMBER 2021 ANSWER TO BE TABLED ON MONDAY 22ND NOVEMBER 2021

Question  

Will the Assistant Chief Minister provide the Assembly with details of –

1. the total expenditure on the Our Hospital' project from 17th November 2020, when Overdale was confirmed as the preferred hospital site, through to 1st November 2021;
2. any outstanding liabilities anticipated as remaining by 31st December 2021;
3. the precise breakdown of spending by each head of expenditure within the project;
4. the distinction in expenditure between Government of Jersey costs (including specific costs such as staffing) and external stakeholders; and
5. any contracts and payments above £100,000 in total during this period, including a description of the purpose of the engagement, the final total cost of the engagement (showing any difference between the Outline Business Case and the actual expenditure) and the final expected date of the engagement (including any over-runs or additions to the original contract)?

Answer

1. the total expenditure on the Our Hospital' project from 17th November 2020 through to 1st November 2021

The total cost during this period was £44.04m.

Please note that the figure requested spans two reporting years, 2020 and 2021, as per the defined period of 17th November 2020 through to 1st November 2021.

Suppliers are paid monthly for their services and therefore the costs in November 2020 have been adjusted by only including 13 of 30 days of services provided in this month.

2. any outstanding liabilities anticipated as remaining by 31st December 2021

Outstanding liabilities are defined as committed spend on 31st December 2021. The analysis includes suppliers and consultants work carried out during December 2021 that will be paid in subsequent months. Additionally, the Design and Delivery Partner Pre-Construction Services Agreement (PCSA) and Les Quennevais Enabling Works values includes a provision for work that was planned to be carried out during 2021 but has yet to been agreed as part of the monthly progress valuations.

The estimated year end liabilities for the project are as follows:

GOJ Team cost  £0.48m Design and Delivery Partner PCSA  £5.64m Les Quennevais Enabling Works  £0.56m £6.68m

3. the precise breakdown of spending by each head of expenditure within the project

Spending by Head of Expenditure during the period 17th November 2020 to 1st November 2021 was:

These figures span two reporting years, 2020 and 2021, and the defined period of 17th November 2020 through to 1st November 2021.

4. the distinction in expenditure between Government of Jersey costs (including specific costs such as staffing) and external stakeholders

5. any  contracts  and  payments  above  £100,000  in  total  during  this  period,  including  a description of the purpose of the engagement, the final total cost of the engagement (showing any difference between the Outline Business Case and the actual expenditure) and the final expected date of the engagement (including any over-runs or additions to the original contract)?

The Outline Business Case provides high-level cost categories for annual capital expenditure, for example "GOJ team cost" or Client Contingency. These categories do not always align with the spend on specific contracts, which the question asks for.

The table below outlines contracts over £100,000 that also will include payments above the same amount. The stated actual expenditure is captured during the period of 17th November 2020 to 1st November 2021. The contracts have been summarised into high-level categories to protect the commercial sensitivity.

The professional fees in the table is less than stated in the answer to part (d). The reason is that question (e) asks for contracts and payments above £100,000. It therefore excludes payments made below this threshold.

High-level cost analysis

The cost categories consist of:

• Project Management – covers a total of two contracts for suppliers providing strategic and operational project management.

• Professional Fees - covers four supplier contracts providing services from business case development, site acquisition, clinical design to Design Quality Assurance

• Hospital design fees and Les Quennevais Decant works are provided by one supplier and the contract value of £29.74m covers both categories.

As can be seen from the table, there are no over-runs as defined by costs exceeding the contracted value.

Detailed cost analysis