SALISBURY NHS FOUNDATION TRUST

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SALISBURY NHS FOUNDATION TRUST

PAPER

SFT 3139

TITLE

CAPITAL DEVELOPMENT REPORT

TO THE TRUST BOARD FOR THE PERIOD

FEBRUARY – MAY 2011

PURPOSE OF PAPER

The purpose of this paper is to up-date the Board on developments with some

of the more significant capital schemes on the Salisbury District Hospital site

since the date of the last report (January 2011).

EXECUTIVE SUMMARY

The main highlight of this report includes the handover of the final phase of

the Emergency Department project. At the time of writing, handover of the

new Paediactric Unit was expected to be completed by Friday 27

th

May 2011.

Updates are included for the other significant schemes in the approved capital

programme.

ACTION REQUIRED BY THE BOARD

To note the progress of the Trust’s significant capital building schemes.

Laurence Arnold

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SALISBURY NHS FOUNDATION TRUST

TRUST BOARD

6 June 2011

PAPER: SFT 3139

CAPITAL DEVELOPMENT REPORT

The purpose of this report is to update the Board on developments with some of the

more significant capital schemes since the last report (January 2011).

Emergency Department (internal) reconfiguration

A phased programme of difficult internal reconfiguration work is now completed. The

work on site contracted to complete in December 2010 have overrun until late April

2011, due to a combination of client variations, poor contractor resourcing and

inclement weather affecting site worker attendance in late November and December

2010.

See Appendix A for further details.

SDH redevelopment project (Phase 3 Paediatrics)

The project on Levels 3 and 4 of the SDH North building is now completed. The work

on site contracted to complete in December 2010 has overrun until the end of May

2011. Non-completion certificates have been issued by the architect as most of the

current delays have been seen as the fault of Pearce and the Trust will be seeking

damages accordingly. The service plans to be fully operational in SDH North by end

of June 2011.

See Appendix B for further details.

Private Patients Unit

The building contract to convert Ebble Ward on the lower ground floor of the Spinal

Unit into a 4 bedded private patient facility was completed in December 2010. A

further package of minor works is now complete. Final commissioning and equipping

saw the new Unit operational by the end of January 2011.

See Appendix C for

further details.

THIS IS THE FINAL REPORT ON THIS SCHEME

NICU relocation and Parent’s Accommodation

At the April meeting the Trust Board approved a business case to relocate NICU and

create transitional care beds, reconfiguring the postnatal ward to improve the

environment and privacy, along with the creation of more single rooms. This scheme

will also see parent’s accommodation provided in the vacated NICU building funded

through the Stars Appeal.

See Appendix D for further details.

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Maternity services

A scheme is being developed which will see the transfer of antenatal and postnatal

services into the current Pembroke Ward and Suite. A subsequent phase will bring

forward the creation of a low risk birthing facility. This scheme will better equip the

department to manage an increasing birth rate, centralise maternity services on one

side of the SDH Central corridor and create opportunities to provide one central

entrance point for Maternity. A business case for the whole scheme will be brought to

the July Trust Board meeting.

Spinal Unit outpatients reconfiguration

This scheme will see outpatient based services in a dedicated facility with new

patient hoists and an expanded clinical treatment space. The project is a waiting

resourcing and initiation.

Other SDH Site Redevelopment schemes

Once the new Paediatric department is relocated in SDH North, the vacated

accommodation in SDH Central will be available for review and optimum usage.

Some space in the old Sarum Ward will continue to house administration offices for

those Paediatric staff who have not been accommodated in the “new Paeds” along

with some of the staff displaced from Level 3 and 4 (currently residing at SDH South).

Limited funds are available this year as reflected in the Trust Board approved capital

programme for 2011/2012.

Work is continuing to investigate development opportunities for the vacated areas of

SDH South. A meeting will be held on 31st May with the strategic planning arm of the

Wilstshire Council to look at opportunities. Further steps to seek potential interest in

the market will see a Memorandum of Information being issued in June.

Other significant schemes in the Approved Capital Programme for 2011/2012

An update is attached in the

Annex

.

Laurence Arnold

Director of Corporate Development

24 May 2011

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Other significant schemes in the Approved

Capital Programme for 2011/12

The purpose of this Annex is to up-date the Trust Board on other schemes that make

up a significant part of the current Capital Programme.

Scheme and description

Completion

date

Budget cost

incl VAT

Electricity at work regulations compliance (7828C0)

Inspection and testing of fixed electrical installations across the

SDH site following legislation and DH guidance. Excludes PFI

buildings. Having slipped from 2010/11, this is now the first full

year of a 3 years funding requirement

March 2012

£100k

Combined Heat and Power (CHP) (7670C0)

A replacement CHP Unit was installated early in 2011 with

interest free SALIX loan for £911k. The system is due to become

operational on 4

th

July 2011.

July 2011

£629k

Building Management System (BMS) upgrade (7814C0)

A phased “invest to save” project to replace all of the outdated

BMS outstations, operating system and head end hardware.

(2nd year of 3 years funding requirement). Contractor (BAS) is

carrying out the work. *Includes £188k slippage from 2010/11.

March 2012

£438k*

Efficiency schemes (7703C0)

Funding available to support efficiency projects with rapid

payback revenue savings identified during the period.

March 2012

£200k

Central Blocks hot water (7023C0)

Moving the domestic hot water load from the Central to Spinal

Unit boiler house will save energy, reduce legionella risks and

improve efficiencies recycling accumulated heat.

October 2011

£120k

DSU theatres mechanical plant (7027C0)

This scheme will see the 25 year old ventilation and chiller plant

to Theatres A & B replaced.

March 2012

£156k

Sewer repairs generally (7024C0)

This scheme will see various foul drainage blockages in the

vicinity of SDH North investigated and repaired. A collapsed

sewer close to the Nunton entrance has already been repaired

(value £20k expended).

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APPENDIX A

C

APITAL

D

EVELOPMENTS

–

4

M

ONTHLY

R

EPORTING TO

T

RUST

B

OARD

PROJECT EMERGENCY DEPARTMENT (INTERNAL)RECONFIGURATION

CURRENT STATUS COMPLETION OF CONTRACT

CAPITAL JOB NO. 7408C0

COSTS (£) APPROVED BUDGET

2011/12

SPEND TO DATE

2011/12

FORECAST OUT-TURN

2011/12 VARIANCE +/ -TO BUDGET EDSCHEME (11/12 ALLOCATION) £217,223 £1,360 £40,000 -£177,223 COMMENTS:

Spend to date is up to 30 April 2011. The Approved Budget excludes any remaining Stars Appeals contribution.

The overall project budget is expected to show a saving, partly due to the lower than forecast tenders.

TIMESCALES

NEXT SIGNIFICANT MILESTONES:

ORIGINAL PROGRAMME DATES

ACTUAL DATES VARIANCE +/- TO ORIGINAL PROG.

START ON SITE September 2009 February 2010 + 5months

OPERATIONAL DATE August 2010 21st April 2011 + 9 months

COMMENTS:

The original programme dates shown above are those given in the “Options for the Emergency Department” paper presented to the Board in May 2008 at Appendix D.

The works on site were planned to take 44 weeks in 6 phases with contract completion 6 December 2010. Various delays and time for extra works (e.g entonox) have been mitigated by re programming to give a revised completion date of 17 December 2010. Final handover was 21st April 2011. Non completion certificates have been issued against the main contractor for current delays. It is expected that the main contractor will be presenting a claim for loss and expense.

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APPENDIX B

C

APITAL

D

EVELOPMENTS

–

4

M

ONTHLY

R

EPORTING TO

T

RUST

B

OARD

PROJECT PHASE 3PAEDIATRICS

CURRENT STATUS IN CONTRACT

COSTS (£) APPROVED BUDGET

2011/12

SPEND TO DATE

2011/12

2011/12 VARIANCE +/ -TO BUDGET PAEDIATRICS SCHEME (11/12 ALLOCATION) £53,275 £52,548 £213,275 +£160,000 COMMENTS:

Spend to date in 2011/12 is up to 30 April 2011. The Approved Budget for 2011/12 excludes any remaining Stars Appeals contribution.

After taking into account VAT recovery at 28%, the final project cost is currently expected to exceed approval by £160,000. This may be mitigated (in part) by liquidated damages charged against the main contractor for delays.

.

TIMESCALES

START ON SITE

February 2010 February 2010 NIL

OPERATIONAL DATE

December 2010 30 June 2011 + 6 months

COMMENTS:

The contract completion date of Phase 3 Paediatrics was 6th December 2010. Final handover is expected on 27th May 2011. Non completion certificates have been issued against the main contractor for current delays. As expected, the main contractor has issued a financial claim for loss and expense.

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APPENDIX C

C

APITAL

D

EVELOPMENTS

–

4

M

ONTHLY

R

EPORTING TO

T

RUST

B

OARD

PROJECT PRIVATE PATIENT UNIT

CURRENT STATUS COMPLETED –(THISISTHEFINALREPORTFORTHISSCHEME)

CAPITAL JOB NO. 7285C0

COSTS (£) APPROVED BUDGET SPEND TO DATE FORECAST OUT-TURN VARIANCE +/ -TO BUDGET

FUNDING (EXCLUDING

EQUIPMENT) £393,296* £385,106 £393,296 NIL

COMMENTS:

Spend to date is up to 30 April 2011.

Funding comprises: Main contract works (Castleway) £246,000 Post contract works (ETS in house) £17,000

IT works £10,000

Fees and other enabling costs £25,000

VAT (non recoverable) £52,000

Equipment and commissioning costs are also included.

TIMESCALES

START ON SITE

September 2010 September 2010 NIL

OPERATIONAL DATE

January 2011 January 2011 NIL

COMMENTS:

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APPENDIX D

C

APITAL

D

EVELOPMENTS

–

4

M

ONTHLY

R

EPORTING TO

T

RUST

B

OARD

PROJECT NICURELOCATION AND PARENT’S ACCOMMODATION

CURRENT STATUS IN DESIGN

COSTS (£) APPROVED BUDGET

2011/12

SPEND TO DATE

2011/12

2011/12 VARIANCE +/ -TO BUDGET EXCHEQUER FUNDING PHASE 1(EXCLUDING EQUIPMENT) £380,000 £920 £380,000 NIL STARS APPEAL PHASE 2FUNDING (EXCLUDING EQUIPMENT) £300,000 £0 £300,000 NIL COMMENTS:

Spend to date is up to 30 April 2011. On completion of the design, the PMB is to make a decision on reuse or replacement of the existing heating system in Wilton Ward (considerations are cost, energy efficiency, maintenance and repair, future disruption/decanting) before tendering.

TIMESCALES

IN CONTRACT (PHASE 1 NICU RELOCATION) START ON SITE COMPLETION

October 2011 January 2012

October 2011

January 2012 NIL

IN CONTRACT (PHASE 2 PARENT’S

ACCOMMODATION) START ON SITE COMPLETION February 2012 May 2012 February 2012 May 2012 NIL COMMENTS:

This scheme will be tendered in the August 2011 and completed in two phases.

Phase 1 will see the new NICU located in the former Wilton Ward in SDH Central. Following transfer of the service, Phase 2 will see the former NICU building (along with small extension) will be transformed into four ensuite parents’ bedrooms with supporting facilities (all funded by the Stars Appeal).