Deliverables

Tasks

Date Completed

Brief/Design Freeze

It is important for the key stakeholders / user panel to recognise that one tenders are accepted the brief / design is now frozen and, henceforth, any proposed changes must be subject to formal change control procedures. Change following the signing of the contract will necessarily have time and cost consequences.

Quality Standards

Design developed by the integrated project team post contract will comply with quality procedures. The quality activities during design development are:

• Confirming the project brief

• Ensuring that designers are familiar with the standards issued by the Scottish Government Health Directorates

• Ensuring compliance with:

• Legislative requirements

• Standards and statutory guidance impacting such topics as health and safety, security, privacy and dignity

• Disability discrimination Act, and

• Infection Control

Design Management

Design developed by the integrated project team post contract will be managed and conform to the project brief. Any required change will comply with the change and cost control procedures described in the Project Execution Plan.

The purpose of design management is to ensure that:

Designs comply with the brief, with the brief itself not being altered except through formal change control procedures

Changes are strictly controlled and costed

Options are considered where practicable and appraised

Designs are well co-ordinated

Design is completed to programme

Cost and progress reports are issued at regular intervals

The Project Director and the key stakeholders / user panel are kept informed through meetings and presentations

Section 1.6 and 1.6.1 of PROCODE for procedures for design management

Scottish Government Construction Procurement Manual - Section 1 Annex C, Design - Understanding the Design Process

Design Development

Where not included in the tender documents:

• Sketch designs/detailed designs will be presented to the key stakeholders/user panel to explain how the brief has been translated to fulfil their requirements. Ideas to improve operability will be considered within the change control procedures.

• Sketch designs will include:

• Spatial layouts, including room locations, circulation and major plant and equipment space.

• Site access and contractors' areas.

• A value and risk study may be conducted at this stage (VE1) and (RM3).

Final decisions will be taken by the appropriate person. The Project Manager will draw the attention of the Project Director to design options which affect whole hospital operations, aesthetic appearance, capital and running costs, programme or operability.

The above will be reported in an updated brief and design development review report.

Scottish Government Construction Manual - Section 1 - Annex C, Design - Understanding the Design Process.

Equipment Schedules

Equipment schedules for Groups 2 and 3 equipment based on the agreed room data sheets/layouts, will be prepared at this stage. The items available for transfer should be identified so that schedules for new equipment can be prepared and costed to ensure that the equipment budget established at the Full Business Case stage will not be exceeded.

Detailed Design

Detailed design comprise converting the sketch design into production drawings and specifications which are in sufficient detail for:

• Constructing the buildings.

• Installing services.

• Purchasing client equipment.

• Co-ordinating building services and client equipment with the building itself.

Scottish Government Construction Procurement Manual - Section 1 - Annex C, Design - Understanding the Design Process

Cost Estimate

A cost estimate (budget/cost 3) must be prepared for the main building contract under any procurement strategy prior to Full Business Case approval. This will include:

• Up to date risk analysis and contingency

• Up to date capital cost estimate

• Updated whole life costs (WLC report 3)

• Confirmation that the programme is acceptable

If the review indicates that costs exceed the figure approved by the Scottish Government Health Directorates, the design will be reviewed for savings, otherwise re-approval will be necessary.

Scottish Government Construction Manual - Section 4 - Financial Aspects, Budget Estimates.

Monitoring and Control

Programme Management

Each contract, when awarded, will contain its own programme, compatible with the project programme and key milestone dates. The Technical Project Manager will check and monitor progress against the contract programme and issue monthly Project Progress Reports.

Quality Control

There are two main requirements of quality control:

• To check that all construction work undertaken by the contractor is in accordance with the contract documents. There may be a Clerk of Works appointed, based on the site, who has delegated authority to act as inspector on behalf of the client. The clerk of works has no authority to change the specifications, only to see that they are complied with.

• Ensure compliance with the inspection and testing procedures in the contract documents have been complied with.

Record Keeping

Maintenance of good records of site activities is a responsibility of the Project Manager. The Project Director will ensure, through personal inspection that this is carried out thoroughly. These records are necessary to provide an audit trail and information for the post-project evaluation. The records are essential for the assessment of claims, and particularly for any disputes. Records must include:

• A daily diary

• All site instructions and change orders

• Inspection and testing results

• Drawing issues and revisions

• Requests for information or instructions by the contractor

• Any circumstances which might give rise to a claim

• Other matters which the Technical Project Manager considers significant

Scottish Government Construction Procurement

Manual Section 2 - Value for Money,

A6.15 Quality Control Post Project Evaluation Guide

A.7 Project Reports

Section 3 - Procurement Strategies and

Appointment of Consultants and Contractors, A.£ -

The Award Stage, Audit Trail

Payment and Financial Controls

Cost Management

Project Manager to: operate change control procedures, price variations, manage expenditure of contingencies, and maintain latest estimated cost and cash flow, initiate action to avoid overspend, issue monthly Financial Status Reports and submit Scottish Government Health Directorates Report Form.

The Technical Project Manager will follow the procedures below in the cost management of the project.

• To operate change control procedures. Although cost reports, estimates, and forecasts are prepared by the Quantity Surveyor, the Technical Project Manager is directly responsible for understanding the cost consequences of any decisions and for initiating corrective actions if necessary.

To maintain an up to date estimated cost and cash flow

To manage expenditure of contingencies

To initiate action to avoid overspend. The project programme, which includes all contracts, and the programmes and terms of payment for individual contracts, must be compatible with the approved funding arrangements. If the forecast cash flow varies from that approved, the NHSScotland Body must notify the Scottish Government Health Directorates immediately for schemes approved by the Scottish Government Health Directorates

To issue a monthly financial status report. This report is prepared by the Quantity Surveyor with comments by the Technical Project manager, and is submitted as an integral part of the Project Progress Report (PPR). It must include the results of monitoring by the Project Manager of the overall cost of the project, against the approved budget.

Payment

Bodies, as the contracting parties, are responsible for paying contractors and suppliers the interim and final payments to which they are entitled. These will be made as follows:

• In most construction contracts, the Quantity Surveyor will agree valuation of interim payments due during the course of the work, which the contract Administrator will consider, and if agreed will issue a payment certificate.

• Bodies must pay the amount certified on time.

• The Project Director, on the advice of the Technical Project Manager, should keep the NHSScotland Body finance department aware of future payment requirements by means of the updated cash flow forecast.

Claims

Technical Project Manager to maintain record of potential claims, assess submitted claims and report on circumstances.

The terms of the contract allow contractors to claim additional payments in certain circumstances defined in the contract conditions. These are generally due to either:

• Risks occurring which are client risks under the contract

• Failure by the NHSScotland Body to comply with its obligations under the contract. This is often expressed as disruption of the contractors' work programme due to changes or late information.

Whenever recourse to arbitration or litigation is contemplated or undertaken, the Project Director will formally notify the Scottish Government Health Directorates of the situation and seek advice.

Claims and Final Accounts

Settle outstanding claims if possible.

PROCODE Section 1.9 - Guidance on the use of

Cost Control Reporting Forms

Scottish Government Health Construction

Procurement Manual - Section 4 - Financial

Aspects

Scottish Government Construction Procurement

Manual - Section 1 - Annex C, Claims

Propriety

Tendering during the contract will be performed under standing financial instruction, proper delegations and allow for audit.

The policies governing public procurement will apply with procedures in place complying with those policies. The Two most important policies are the maintenance of propriety and the award of contracts on the basis of best value for money.

Implementation of these policies will be as follows:

• Propriety will be maintained through compliance with procedures providing checks and balances, placing the responsibility for contracts on more than one person, ensuring confidentiality and equal treatment of bidders.

• There must be formal delegations of financial authority for the approval and letting of contracts.

• Major works contracts must be approved by the Project Investment Decision maker (usually the NHSScotland Body).

• The Project Director must ensure that the Technical Project Managers and other consultants maintain the same high standards of propriety.

• The Technical Project Manager must maintain procedures, and check those of other consultants.

• Internal Audit of these procedures is a specific part of the annual internal and external audits of NHSScotland Bodies, not simply a requirement of on stage of a capital project. As long as a recent audit has confirmed compliance, and Project Director is satisfied regarding the procedures of consultants, this requirement will have been fulfilled.

PROCODE Section 1.3, Part 1.9, Part 4 (Guidance on Propriety)

Scottish Government Construction Procurement Manual Section 3 - Procurement Strategies and the Appointment of Consultants and Contractors, Team working Tips

Final Cost Review

Should the Full Business Case require that costs be reduced following the update of risk analysis and contingency, the established approved sum, and the project programme then a value and risk study will be undertaken to:

• Check the project against all the other constraints defined in the Full Business Case, including running costs, the discounted cash-flow calculations and re-approval criteria and

• Indentify any savings necessary to stay within budget - for example, by simplifying some of the design or reducing the scope of the project.

Change control procedures require that if changes to the brief are proposed then they must be agreed with the key stakeholders / user panel. A variation in project scope or a cost above that approved will require re-approval from the Scottish Government Health Directorates and this must be done before the contract is signed. New tenders may be required if the scope of work has been altered significantly.

Scottish Government Construction Procurement Manual - Section 4 - Financial Aspects, Annex A, Contents of a Financial Report.