No.

Risk Heading

Definition

Allocation

public sector

private sector

shared

4.1

Incorrect estimated cost of providing specific services under the contract: within market testing periods

The cost of providing these services may be different to the expected, because of unexpected changes in the cost of equipment, labour, utilities and other supplies.

4.2

Incorrect estimated cost of providing specific services under the contract: at point of market testing

The cost of providing these services may be different to the expected, because of unexpected changes in the cost of equipment, labour, utilities and other supplies. This risk would be shared if the PPP contract envisages that changes in cost at the point of market testing are shared between the NHS body and the operator.

4.3

Legislative/ regulatory change having capital cost consequences: NHS specific.

NHS specific changes to legislation/regulations may lead to additional construction costs, and higher building, maintenance, equipment or labour costs.

4.4

Legislative/ regulatory change: non-NHS specific

Non-NHS specific changes to legislation/regulations may lead to additional construction costs, and higher maintenance, equipment or labour costs.

4.5

Changes in taxation

The scope and level of taxation will effect the cost of providing services.

4.6

Changes in VAT

This may increase the cost of the provision of services to the NHS body. However changes in VAT are generally refundable to the NHS body.

4.7

Incorrect estimated cost of providing clinical services

The cost of providing clinical services may be different to the expected. These costs include: staff, recruitment, training, equipment and supplies.

4.8

Incorrect estimated cost of maintenance

The cost of building and engineering maintenance may be different to the expected costs.

4.9

Incorrect estimated cost of energy used

Failure to meet energy efficiency targets or to control energy costs.

4.10

Patient infection caused by poor facilities management

There is a risk that a patient infection could be traced directly to the actions of staff employed and managed by the facilities manager. This may include, for example, food poisoning and wound infection from incorrectly sterilised dressings. This risk may lead to increased treatment costs and, possibly, legal costs if the patient takes legal action.

4.11

Patient infection -other

Patient infection caused by staff employed by and controlled by the procuring body. This risk may lead to increased treatment costs and, possibly, legal costs.

4.12

Estimated cost of transferring the employment of staff to new employer is incorrect

The estimated cost of the transfer of the employment of staff, under TUPE, may be incorrect. This includes the cost of any legal appeals. The NHS body may be asked to warrant information

4.13

Estimated cost of restructuring the workforce providing services under the contract is incorrect

The estimated cost of restructuring the workforce at any time during the operating phase, such as recruitment costs and redundancy payments, may be incorrect.