2.10 The second procurement resulted in a much clearer definition of responsibilities between the legal and financial advisers. The Financial Advisers (KPMG) had extensive experience of hospital PFI deals. The legal firm (MacFarlanes) had extensive knowledge of the Trust from previous work. Both these advisers commented that the chartered surveyors (James Nisbet and Partners) provided excellent analysis of the bidders' proposals.
2.11 Advisers were appointed after competitive tendering processes. Following a review, the Trust's external auditors (HLB Kidsons) raised no concerns about the manner of these appointments. The Trust monitored the level of fees (see Figure 4), reconciling the fees charged for a programme of work against previously estimated costs for that work provided by the relevant advisers. Reasons given for the overspend include the delay over the agreement of the Standard Contract and the proposed change of use for T Block.
|
4 |
|
Adviser costs |
|
|
|
|
This Figure shows that the cost of advisers was some £2.3 million |
|
|
|
|
Type of adviser |
Total cost(£000s) |
|
|
|
Financial |
967 |
|
|
|
Legal |
803 |
|
|
|
Project management |
204 |
|
|
|
Quantity surveyor |
128 |
|
|
|
Other |
237 |
|
|
|
Total |
2,339 |
|
|
|
Source: The Trust |
|