cost planning and reporting standards ver 2.0 final 20121009

8/10/2019 Cost Planning and Reporting Standards Ver 2.0 Final 20121009

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PREPARED FOR:

October 2012

Version 2.0 - FINAL

COST PLANNING AND REPORTING STANDARDS

Definitions & Standard Pro-forma


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Release notes

This release represents the public issue of the Cost Planning Standards and Reporting Standards.

Health Infrastructure endorsed the current release for industry use commencing2nd October 2012.

What is new?

This is the first issue of this document in its current format. This Document supersedes any previous CostPlanning or Cost Management documents issued by NSW Health.

Contacts

Anthony Manning

Health Infrastructure02 9978 5402

[email protected]

Acknowledgements

Health Infrastructure acknowledges the following contributors to the development of this Document:

NSW Health;

HI Expert Reference Group;

Rider Levett Bucknall;

All reviewers of the draft versions; and,

All past authors, contributors and reviewers to previous releases.

Foreword

This document is intended for the use on healthcare facility projects valued at $10 million and above.

First published

Version 2.0 FINAL Issued 9thOctober 2012

Access

The Standards can be accessed electronically at the following web site address:

http://www.hinfra.health.nsw.gov.au/__documents/publications-and-resources/cost-planning-and-reporting-

standards_ver-2.0_final_20121009.pdf
http://www.hinfra.health.nsw.gov.au/__documents/publications-and-resources/cost-planning-and-reporting-standards_ver-2.0_final_20121009.pdfhttp://www.hinfra.health.nsw.gov.au/__documents/publications-and-resources/cost-planning-and-reporting-standards_ver-2.0_final_20121009.pdfhttp://www.hinfra.health.nsw.gov.au/__documents/publications-and-resources/cost-planning-and-reporting-standards_ver-2.0_final_20121009.pdfhttp://www.hinfra.health.nsw.gov.au/__documents/publications-and-resources/cost-planning-and-reporting-standards_ver-2.0_final_20121009.pdf


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Cost Planning and Reporting Standards

CONTENTS

1. INTRODUCTION AND INSTRUCTIONS FOR USE................................................................ 1

1.1 Description ......................................................................................................................... 1

1.2 Objective of this Document ................................................................................................. 1

1.3 Document Structure ........................................................................................................... 1

1.4 Application ......................................................................................................................... 2

1.5 Relationship to other documents and guidelines ................................................................. 2

1.6 Review and revision ........................................................................................................... 3

1.7 Definitions .......................................................................................................................... 3

1.8 Acronyms ........................................................................................................................... 4

2.0 COST PLANS ........................................................................................................................ 6

2.1 Introduction ........................................................................................................................ 6

2.2 Cost Plans Required .......................................................................................................... 6

2.3 Probability (P) Rating ......................................................................................................... 6

2.4 General .............................................................................................................................. 6

2.5 Cost Plan Layout ................................................................................................................ 7

2.6 Travel and Engineering Allowance ...................................................................................... 7

2.7 On-Costs ............................................................................................................................ 8

2.8 Contingencies .................................................................................................................... 9

2.9 Fees................................................................................................................................. 10

2.10 FF&E ............................................................................................................................... 11

2.11 ICT ................................................................................................................................... 13

2.12 Escalation ........................................................................................................................ 15

2.13 Cashflow .......................................................................................................................... 15

3.0 FINANCIAL REPORTS ........................................................................................................ 17

3.1 HI Portal ........................................................................................................................... 17

3.2 Monthly Financial Report .................................................................................................. 17

APPENDICES

APPENDIX A FORMAT FOR STANDARD COST PLAN REPORT

APPENDIX B PRO-FORMA FOR STANDARD COST PLAN REPORT

APPENDIX C PRO-FORMA FOR STANDARD COST PLAN SUMMARIES

CP1 COST PLAN SUMMARY

CP4 ELEMENTAL SUMMARY

CP5 TRADE SUMMARY

CP6 PLANNING UNIT COST PLAN DETAILS

APPENDIX D PRO-FORMA FOR PRELIMINARIES (INDICATIVE)

APPENDIX E CONTINGENCIES

APPENDIX F PROFORMA FOR STANDARD CASHFLOW

APPENDIX G PROFORMA FOR VARIATION REGISTER

APPENDIX H FORMAT FOR (MONTHLY) FINANCIAL REPORTING

APPENDIX I PROFORMA FOR STANDARD (MONTHLY) FINANCIAL REPORTING


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Version 1.0, June 2012 Page 1

1. INTRODUCTION AND INSTRUCTIONS FOR USE

1.1 Description

This document provides standard information for Cost Managers to prepare costinformation and documentation in the planning, design and implementation of new andrefurbished healthcare facilities in NSW over $10million in value (principally). Information inthis document is referred to throughout the text as: Cost Planning and ReportingStandards; this Document; or these Standards.

The purpose of these Standards is to ensure consistency in respect of the cost deliverablesof the Project and a framework for the uniform preparation and presentation of cost adviceby the Cost Manager to Health Infrastructure (HI).

1.2 Objective of this Document

The main objectives of these Standards are:

To provide general guidance to Project team members in the design andimplementation of health care facilities in NSW for HI;

To provide a single source reference document to define the requirements for costplanning and cost reporting;

To ensure consistency in the presentation of the cost deliverables of a Project;

To facilitate cost comparison between projects;

To facilitate cost benchmarking of projects;

To convey HI policy;

To identify inclusions within key cost components; and,

To standardise reporting formats.

1.3 Document Structure

This Document is divided into numbered Sections. The Sections are as follows:

1. Introduction and Instructions for Use;

2. Cost Plans;

3. Financial Reports; and,4. Appendices.

Introduction and Instructions for Use

This Section (1).

Cost Plans

Section (2) provides Standards on the format, structure and definitions of items forinclusion in Cost Plans deliverable during HI Projects.

Financial Reports

Section (3) provides Standards for Financial Reporting deliverable during HI Projects.


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Appendices

The Appendices to this Document include standard structures for reporting, pro-formasand the like for Cost Plans and Financial Reporting.

1.4 Application

This Document is applicable to the entire Project Team to comprehend, support and applyto all HI Projects.

Without limiting the professional processes of the Cost Manager, the User of this Documentis tasked with complying with the pro-forma documentation and structures for deliverablesand submissions to HI.

The application of these Standards is to ensure consistent information is presented to HIduring Projects and for later reference by others for benchmarking and general reference.

With the exception of Contingencies where allowances (percentages or otherwise) are

included within these Standards, the Cost Manager must undertake their own investigationsas well as any necessary benchmarking to validate the allowance as provided. In theapplication of these Standards, where the allowances are significantly varied by the CostManager, justification is required to be given in writing within the Project Reporting.

In all HI Projects, the Cost Manager must have a considered understanding of the intent ofthese Standards together with advice and progressive thinking on how this intent can bebest presented to articulate the cost goals, and reporting of the Project.

1.5 Relationship to other documents and guidelines

This Document must be read in conjunction with other existing guidance and in accordancewith AIQS and RICS best practice.

All HI Projects must be delivered in accordance with the requirements of all relevant Codesand Regulations.

1.5.1 Related Documents from HI

This Document forms part of a series of HI documents developed for use in designand delivery of healthcare facilities in NSW.

To fully comprehend these Standards, Users must make themselves familiar withthe documents in this Section (1.5), as well as the relevant parts of any specificreference documents noted in individual sections within these Standards.

The following HI documents (listed in order of relative importance) are associatedwith this Document, including but not limited to:

a) Part Fof the capital consultants Request For Tender documents: thisforms the Consultants scope of services and deliverables in theadministrative aspect of the consultants engagement with HI;

b) TS 11: Engineering Services Design Guidelines;

c) Health Infrastructure Portal Project Directors Manual; and,

d) FF&E StrategyHI Strategy and Documentation.

1.5.2 Other Related DocumentsOther documents (listed in order of relative importance) relevant to this Documentand to be referred to by the User; include, but are not limited to:


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a) Australian Health Facilities Guidelines (all parts);

b) Australian Health Facilities Guidelines, Part F - Project Implementation680 Furniture, Fittings and Equipment; and,

c) Australian Cost Management Manual (ACMM).

The provisions or requirements of other documents and/ or guidelines will need tobe assessed against the deliverables required by this Document.

1.5.3 Reference to Other Documents

Where references are made in these Standards they are to the latest version ofreferenced guides, codes and standards applicable. The user of this Documentmust verify the latest guidance material available at the time work is to be carriedout.

The minimum requirements must be those listed in legislation, mandatory and

relevant standards and accepted good practice guides relevant to healthcarefacilities.

1.6 Review and revision

A process of review and revision has been developed for these Standards. HI and industrycomment will be sought and responded to in future versions of these Standards.

1.6.1 Consultant/User Feedback

Users of this Document are invited to provide feedback on any aspect of theStandards that may be considered of benefit to HI in order to facilitate continuous

improvement in the design and operation of NSW healthcare facilities.

1.7 Definitions

Definitions that are specific to words or phrases used in this Document are listed in thefollowing table.

Item Definition

Business Case A budget established as part of the Business Case process developed inaccordance with NSW Treasury Guidelines.

Net Construction Cost The cost of the building consisting of the substructure, superstructure,

external fabric and finishes, internal fabric, internal finishes, fixed fittingsand all services within and under the building, the external works andservices within the boundaries of the site and connection to Authoritiesservices at the perimeter of the site, Project specific costs within theboundaries of the site; unless otherwise stated.

Gateway Review A series of structured reviews that are held at key decision points (gates)in the procurement process. NSW Treasury retains the responsibility forGateway Review(s).

Greenstar A comprehensive, national, voluntary environmental rating system thatevaluates the environmental design and construction of buildings. Thesystem has been developed by the Green Building Council of Australia.

Gross ConstructionCost The Net Construction Cost plus preliminaries, overheads and profit,staging and locality allowance

Project risk register The document prepared by the Project Manager (with input from theProject Team) and issued to HI on a monthly (or other agreed) basis.


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Project Team The consultant Project Team for the Project including; Project Manager.Quantity Surveyor, Architect, Engineers and all Other Consultants.

HI Project Director The Health Infrastructure Project Director for the Project.

Access Layer Comprises the structured cabling system, hardware, WAP points andsupporting active equipment which enable access to the Access Layer.

1.8 Acronyms

Acronyms that may be used in this Document are listed in the following table.

Acronym Definition

ACMM Australian Cost Management Manual

AHFG[s] Australian Health Facility Guideline[s]

AS Australian Standard

AS/ NZS Australian and New Zealand Standard

BC Building Cost

CC Construction Cost

EA Economic Appraisal

ERG Expert Reference Group

ESC Executive Steering Committee

ESD Environmentally Sustainable Development

ETC End Total Cost

FF&E Furniture Fixtures & Equipment

FIS Financial Impact Statement

GCC Gross Construction Cost

HFBS Health Facility Briefing System

HFG Health Facility Guidelines

HI Health Infrastructure (also means the HI Project Director)

HPU Hospital Planning Unit

ICT Information & Communications Technology (ICT)

LHD Local Health District

NCC Net Construction Cost

NETC Net End Total Cost

PDC Project Development Committee

PDP Project Definition Plan

SOA Schedule of Accommodation

SPP Service Procurement Plan

TPC Total Project Cost

TS11 Technical Standards 11Engineering Services Design GuidelinesVM Value Management

VMS Value Management Study


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2. COST PLANS

2.1 Introduction

The Cost Manager is to ensure that Cost Plans are: Holistic;

Based upon all documentation available at the time the Cost Plan is produced;

Incorporating all possible investigations;

Inclusive of individual Project characteristics and site specific features; and,

Established in conjunction with anticipated procurement methodologies andprogramme; and,

Compliant with the Reporting Requirements of the Consultants contract.

Inclusive of all applicable allowances and imposts including any applicableallowance for the carbon pricing mechanism

2.2 Cost Plans Required

The Cost Manager is required to prepare Cost Plans as indicated in the following table.

Cost Plan HI Project Delivery Part HI Project Delivery Phase

Cost Plan A (P50) Part 1Master Planning Phase 1 - Planning

Cost Plan B (P60) Part 2Feasibility Development Phase 1 - Planning

Cost Plan C (P70) See below See below

Cost Plan C1 Part 3 - Schematic Development Phase 1 - Planning

Cost Plan C2 Part 4 - Design Development Phase 2 - Implementation

Cost Plan D (P80) Part 5 - Contract Documentation Phase 2 - Implementation

Cost Plans are generally to be prepared in accordance with the Australian CostManagement Manual (ACMM).

2.3 Probability (P) Rating

Each Cost Plan has a Probability rating. This relates to the level of certainty that the Cost

Plan provides. For example, P70 represents a Cost Plan that has a 70% chance of beingdelivered within Budget. As the Project Stages progress, the Probability level will increase.The benefit of this rating is that the Cost Plan represents a realistic expectation of the levelof certainty based on the information available.

The P level P70, for example, does not represent that the Budget is likely to be exceededby 70%, but that there is a 30% chance of the Budget being exceeded. The Contingencysums still need to accurately reflect the level of risk for the Project at each Stage. Theprobability level includes the Project Contingency allocated to each design Stage.

2.4 General

It is intended that each Cost Plan establishes the End Total Cost (ETC) with allowances

assessed and modified on an individual Project basis.

Once the Business Case has been established, the allowances for ESD initiatives,Contingencies, LHD Fees and HI Management must be maintained, as a maximum, at their


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Business Case level in subsequent Cost Plans; notwithstanding that the GCC mayincrease. The rationale for this is that the works are to be designed to the Business CaseBudget and therefore the Business Case Allowances for these items will not be exceeded.Notwithstanding this position, the allowances will be subject to detailed reviews as costplans are developed and can only be amended upon agreement with the HI ProjectDirector.

Cost Plans and Cost Reports must report costs exclusive of GST.

2.5 Cost Plan Layout

The Cost Plan must include commentary on all of the items identified in the standardContents list as included in Appendix A. It must also be based on the Pro-forma as suppliedin Appendix B.

The Cost Plan must also include the appropriate Cost Plan Pro-Forma(s) provided forreference in Appendix C.

The applicable pro-formas to be presented with each different type of Cost Plan are asidentified in the following table.

Cost PlanPro-forma CP1

requiredPro-forma CP4



required

Cost Plan A required ~ ~ required

Cost Plan B required required ~ required

Cost Plan C1 required required ~ required

Cost Plan C2 required required ~ required

Cost Plan D required required required required

2.6 Travel and Engineering Allowance

Generally the schedule(s) of accommodation (SOA) provided to the Cost Manager includeboth the HPU areas together with an allowance for intra-departmental circulation. Theygenerally exclude inter-departmental travel and engineering allowances.

The SOA provided must be interrogated to identify if any travel and engineering allowanceshave been included.

Allowances for travel and engineering must be measured from the drawings. Where nodrawn information is available, allowances for travel and engineering must generally be as

advised in the AHFG, Part C, Clause 705.25.00.

These allowances above must be verified by benchmarking against similar projects and byreference to the Project Design Team.

Note that central energy buildings, hospital streets, link corridors, bridges and the like mustbe included as Project Specifics and not deemed part of travel and engineering.


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2.7.5 Locality Allowances

The locality allowance is added to take account of factors affecting labour andmaterial costs and/or the loss of competition that can occur in remote areas. Thereis published cost data and indices comparing different localities to a base. Whilst

these may be used as a reference it is incumbent on the Cost Manager to applyLocality Allowances derived from their own investigations of the anticipatedmarketplace, resources available in the locality and other factors that will have abearing on the cost of the work.

The Locality Allowance must be identified separately in Cost Plans A and B. Thelocality allowances may be built into the rates used or applied as a separateallowance in Cost Plans C and D.

The Locality Allowance must be either built into the rates or shown separately asappropriate, but must not be in both.

2.8 ContingenciesHI has prepared guideline Contingency allowances for each Phase of a Project. Refer toAppendix E.

Whilst guideline Contingencies have been prepared, it is imperative that the Cost Managerdevelop Project-specific Contingencies based upon the risk registers developed by theConsultant Team.

From and including Cost Plan C the adequacy of the contingency must be reviewed byundertaking a costing and probability analysis of the Project Risk Register. The CostManager, in conjunction with the Project Manager, is to continuously review and update theRegister to reflect the changing risk profile.

2.8.1 Project Contingency

This is intended for risks that can be owned and managed by the project, based onthe information available to them at the appropriate stages. The Cost Managermust make sufficient provision for risks as identified within the three categories Design, Construction and Town planning:

Design development contingency % of gross construction cost requiredwhilst developing design issues;

Town planning contingency % of gross construction cost, required whilstTown planning issues are resolved; and,

Construction contingency % of gross construction cost, an allowance to fundclient risks during construction.

2.8.2 Client Contingency

This is intended to capture risks outside of the Project that the Project Team canhave little or no influence over. Items such as scope definition, changes in HPUguidelines, changes in legislation, best practice and Government policy and theimpact of Government reprioritisation.

Risks must generally transfer from the Client Contingency to the ProjectContingency, during development of the Project and then either be realised or

mitigated.

The percentages indicated in the summary table are taken as normal percentages,in all cases this percentage will be reviewed by the Projects Executive Steering


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Committee (ESC) in conjunction with the Project Team to establish theappropriateness of the allowance compared to the known and unknown risks of theProject. As such the allowance will be increased and decreased depending uponthe level of risk assessed in the Project.

At all stages the Cost Plan produced by the Cost Manager will include both theProject Contingency and the Client Contingency. It is important that the two arekept separate to allow the management of the contingency sums. Wherepercentages are applied to both Project and Client contingencies are calculated onthe Gross Construction Cost (GCC) identified by the Cost Manager.

2.8.3 Allocation of Contingency

The allocation of project and client contingency is the sole domain of the Project sExecutive Steering Committee (ESC).

Any request for the ESC to allocate contingency must be based on a formal

submission from the HI Project Director and endorsed by the Project s Planning andDevelopment Committee (PDC) or Project Control Group (PCG).

2.9 Fees

2.9.1 Consultant Fees

Consultant Fees must include for:

Professional design documentation and supervisory fees;

Fees for consultants inputting advice into the Project; and,

Costs associated with investigations of the site.

The Consultant Fees are also inclusive of fees associated with the EconomicAppraisal of the Project together with Gateway facilitation costs.

Consultant Fees must be benchmarked and based upon the Cost Managersexperience but must be based on actual commissions as soon as available.

2.9.2 Authority Fees and Charges

The Cost Manager must make an assessment of the scheduled costs of externalagencies assessing and certifying building/construction approvals.

Authority Fees and Charges that may be applicable to a project include:

Project Application Fee;

Planning Reform Fee;

Administration Fee

Advertising Fee;

Headworks Charges;

Long Service Levy (may be included in building works contract at Cost PlanD); and,

Authorities contributions and charges.


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2.9.3 LHD Fee

For the LHD fee, Cost Plans A and B is to include an allowance of:

1.5% of Gross Construction Cost (GCC) for all LHD costs inclusive of final

decanting or as otherwise advised by HI.Cost Plans C and D must include allowances calculated by the LHD within the1.5% allowance.

The LHD Fee is to cover the costs of project support by the LHD relating to thecapital work including, but not limited to:

Input into the FIS;

Change management;

Communications strategy;

FF&E procurement; and,

Operational commissioning of the healthcare facility.

2.9.4 HI Management Fee

HI Management Fee is to be as follows:

2% of Net End Total Cost (NETC) or as otherwise advised by HI.

2.10 FF&E

Furniture, Fixtures and Equipment (FF&E) includes the following:

Furniture:o Loose or movable, generally functional, items that equip a room (e.g. tables,

chairs and workstations);

Fixtures:

o May also be referred to as fittings;

o Fixed items that are attached to the building (walls, floors and/or ceiling);and,

o May or may not require services (water, gas, electricity) connections;

Equipment:

o Clinical equipment (e.g. defibrillator, ventilator, diathermy machine);

o Non-clinical equipment, which has a specific therapeutic or diagnosticpurpose (e.g. wheelchairs, IV poles, mechanical lifts); and,

o Major Medical Equipment, which is high-cost clinical diagnostic andtreatment electromedical items that may require specialist services (water,electricity, gas, data networking and/or airconditioning) to be operationalbefore commissioning (e.g. linear accelerator, MRI, dental chair, x-raymachine).

FF&E is separated into three (3) groups of items:

Group 1, Supplied and installed by the Contractor:o This includes everything that can be warranted and fully installed by the

Contractor.


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Group 2, Supplied by the Client and installed by the Contractor:

o This may include items that the Client has on supplier contract or items fortransfer.

Group 3, Supplied and installed by the Client:o This will include items that are specific to the Project, but are under full

procurement and delivery control of the Client.

2.10.1 FF&E for Cost Plans A and B

For Cost Plan A and B, the FF&E estimate is to be established by reference toAHFG rates/m2for each HPU (or department rates), as well as benchmarking fromother Projects.

High cost transfer equipment should be identified at this stage (diathermy,echocardiograph and the like).

Major medical equipment must be identified and costed separately.

2.10.2 FF&E for Cost Plans C and D

For Cost Plan C onwards, an FF&E Cost Report must be prepared as per the HItemplate available on the HI Portal.

FF&E incurs two (2) separate costs:

Cost for procurement; and,

Cost for transfer;

The FF&E Cost Report template is designed to reflect this cost breakdown, so allCost Reporting is to be completed in the format specified in the Budget Template,which has predefined formulas embedded into it.

2.10.3 Types of Equipment

The Budget Template is divided into the two types of equipment (new andtransfer). Each type is further defined to show costs for Major Medical (any itemthat requires a final installation or shop drawing) and Minor Medical items. The CostManager is to note the following:

Costs for New Group 1 Major Medical items should be reflected line item byline item;

Costs for New Group 2, 3 items should be reflected line item by line item;

Costs for Transfer Major Medical items should be reflected line item by lineitem;

Costs for Transfer Group 2, 3 items should be reflected line item by line itemand should include costs for Decontamination, Decommissioning, Tagging,Wrapping and Packing, and actual Transfer / relocation costs.

2.10.4 Groups (1, 2 or 3)

Regarding Groups, the Budget Template is designed for the HI Project Directors to

monitor costs incurred by the LHD (Group 2 procurement and Group 3 procurementand installation). The Budget Template does not show costs for Group 1 items, asthese will be reflected in the construction costs.


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2.10.5 Resource Costs

The FF&E Cost Report template is specifically designed to ensure any costsassociated with resources are both accounted for and transparent. If the costs areaccounted for under Professional Fees or in other parts of the Budget, it must be

specifically stated where each Resource Cost is being taken into account.

2.11 ICT

Information and Communications Technology (ICT) includes the following:

ICT Infrastructure, which may include:

o Structured Cabling Systems;

o Wide Area (WAN) and Local Area Networks (LAN);

o Wireless Networks (WLAN), including support for Automatic Guided Vehicles(AGV);

o Networking devices which facilitate the LANs and WLANs, includingswitches, routers, racks and servers to enable the access layer;

o Communications, including Public Address and Messaging Systems, twoway radio and paging systems, voice over WLAN, Digitally EnhancedCordless Telecommunication (DECT), Unified Communications (includinglegacy PABX and fixed voice);

o ICT accommodation, for example, Communications Rooms, Ducts andRisers.

ICT Functional Systems, which may include:

o Clinical Information and Services, Point of Care Systems, and PatientRecords Systems;

o Building Management Control Systems (BMCS), Programmable LogicControllers (PLC) and Supervisory Control And Data Acquisition (SCADA);

o Logistics, Supply Chain Management, Stock and Instrument Control;

o Patient Entertainment, Comfort, Audio Visual, TV systems;

o Education, Research and Training; Hospital Administration, AssetManagement and Human Resources; and,

o Security, Staff Assist, Nurse Call, Porter, Duress and Orderly Systems, Real

Time Location and Way Finding Services.Most of the ICT functional systems are included in the building contract except for thesoftware of:

Patient Entertainment systems;

Administration systems; and,

Asset management systems.

ICT is to be a separate line item in all cost plans and cost reports.

ICT is separated into three (3) Groups of items:

Group 1, Supplied and installed by the Contractor:

o This includes everything that can be warranted and fully installed by theContractor.

Group 2, Supplied by the Client and installed by the Contractor:


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o This may include items that the Client has on supplier contract or items fortransfer.

Group 3, Supplied and installed by the Client:

o This will include items that are specific to the Project, but are under fullprocurement and delivery control of the Client.

The Project will fund ICT infrastructure associated with the Access Layer, as wellas ICT equipment which directly supports clinical functions (including Nurse Call,Security, Duress, Major Medical ICT, clinical video conferencing, master clocks,master aerial systems and imaging.

2.11.1 ICT for Cost Plans A and B

For Cost Plan A and B, the ICT estimate is to be established by reference to AHFGrates/m2 for each HPU (or department rates), as well as benchmarking from otherProjects.

High cost transfer equipment should be identified at this stage.

2.11.2 ICT for Cost Plans C and D

For Cost Plan C onwards, an ICT Cost Report must be prepared as per the HItemplate available on the HI Portal.

ICT incurs two (2) separate costs:

Cost for procurement; and,

Cost for transfer;

The ICT Cost Report template is designed to reflect this cost breakdown, so all CostReporting is to be completed in the format specified in the Budget Template, whichhas predefined formulas embedded into it.

2.11.3 Types of Equipment

The Budget Template is divided into the two types of equipment (new andtransfer). The Cost Manager is to note the following:

Costs for New Group 1 ICT should be reflected line item by line item;

Costs for New Group 2, 3 items should be reflected line item by line item;

Costs for Transfer Major ICT should be reflected line item by line item; Costs for Transfer Group 2, 3 items should be reflected line item by line item

and should include costs for Decontamination, Decommissioning, Tagging,Wrapping and Packing, and actual Transfer / relocation costs.

2.11.4 Groups (1, 2 or 3)

Regarding Groups, the Budget Template is designed for the HI Project Directors tomonitor costs incurred by the LHD (Group 2 procurement and Group 3 procurementand installation). The Budget Template does not show costs for Group 1 items, asthese will be reflected in the construction costs.


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2.11.5 Resource Costs

The ICT Cost Report template is specifically designed to ensure any costsassociated with resources are both accounted for and transparent. If the costs areaccounted for under Professional Fees or in other parts of the Budget, it must be

specifically stated where each Resource Cost is being taken into account.

2.12 Escalation

The Base Date(s) prevailing for the rates included in the Cost Plan must be clearlyidentified. It is important that Escalation from the Base Date to ConstructionCommencement and Escalation during the construction period are separately identified.

Whilst published cost data and indices may be used as a reference, it is incumbent on theCost Manager to apply escalation factors derived from their own investigation of theanticipated marketplace and Project specifics. Escalation must be accounted for on the sumtotal of the estimated Total Project Cost (TPC) prevailing at the Base Date.

Following completion of the Cost Plan (C2), Escalation is to be distributed within theelemental and/or trade analysis.

2.13 Cashflow

2.13.1 Generally

Cashflows must reflect when expenditure is anticipated to be accrued and not whenpaid, e.g. for the value of work done (vowd) during June, the cost is recordedagainst June, not July, which is when the payment certification and payment is likelyto occur.

It is anticipated that the Cashflow is a compilation of the cash flowing of individualcost centres and individual Construction contracts.

In the Cashflow, Project and Client Contingencies must be shown separately andconsideration must be given to when they are likely to be expended rather thanbeing cash flowed over the life of the project..

Cashflows must reflect NSW Government financial years that commence on 1 Julyannually.

In the Cashflow, FF&E must reflect anticipated expenditure in accordance with theprogramme and any deposits and early payments. Generally it is expended 30% inthe period 6-3 months prior to Project Completion and 70% in the final 3 months

prior to Project Completion. The Cashflow for professional fees shall reflect thedifferent rate of expenditure during the planning and delivery phases as well as pre-and post-construction.

The Cashflows are to be updated monthly to reflect Actual Expenditure as incurred.

2.13.2

During the Business case phase, prior to Cost Plan C, the Cashflow must bepresented as included in Appendix F.

The Cashflow Pro-forma has been developed to serve competing interests. Duringthe Business Case the financial modellers require the Cashflow exclusive ofEscalation. HI for their purposes requires Annual Cashflows prepared that are bothinclusive and exclusive of Contingency.


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2.13.3

For Cost Plan C and onwards the Cashflow must reflect the project programmeprepared by the Project Manager as updated from time to time and not based uponstandard Cashflow formulae. The programme must identify anticipated delivery

dates of major items of plant and equipment as well as cost significant items. TheCashflow must reflect the expenditure of these items as lump sums rather thanbeing cash flowed over the life of the project.

Cashflows for LHD fees should be obtained from the LHD and for HI fees from HI.

The Cash flow is to reflect the anticipated ETC exclusive of contingency allowanceswhere it is deemed, by the Project Director in consultation with the Project team, thatthe contingency allowance will not be required.

2.13.4

During construction the construction Cashflow is to be based upon the Contractors

cash flow. Prior to adoption, the Cashflow is to be vetted by the Cost Manager andadjusted by the Contractor, if required, and agreed. An activity based Cashflow shallbe obtained from the Contractor prior to the first progress payment claim, andpreferably at tender time, to assist the vetting. The Contractor is to update the cashflow at the time of each progress claim.

2.13.5

From PDP onwards the Cashflow shall be monitored in monthly reports by referenceto the PDP approved Cashflow, or other milestone Cashflow s instructed by HI, andis to be presented as included in Appendix F. Any significant deviations must bebrought to the attention of the Project Director and Project Manager so thatcorrective action can be investigated.

Additionally, the Cashflow is to be prepared in the HI Portal Format as included inAppendix F.


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3. FINANCIAL REPORTS

The process of Financial Reporting to HI is via the HI internet Portal as well as by way of aMonthly Financial Report.

3.1 HI Portal

The Cost Manager is to refer to the HI Portal Manual.

Responsibility for inputting data in the HI Portal Financial Reporting is as indicated in thefollowing table.

Input Responsibility

Budget HI Project Director

Commitments Project Manager (approved by HI Project Director)

Forecast commitments Cost ManagerPayments Project Manager (approved by HI Project Director)

Cashflow Cost Manager

Commentary HI Project Director and Project Manager

3.2 Monthly Financial Report

The Cost Manager is to prepare a Monthly Financial Report and in addition is required toupload information into the HI Portal as a Financial Report.

3.2.1 PurposeThe purpose of the Monthly Financial Report is to convey the financial status of theProject by providing information on Project budget status, funding sources,cashflow, financial risks and be a base data source for PDC, PCG and ESCgovernance groups.

The HI Portal Financial Report must form an appendix to the Monthly FinancialReport.

3.2.2 Layout

The Monthly Financial Report must include commentary on all of the items identified

in Appendix H. It must be presented in the format as supplied in Appendix I.


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Version 1.0, June 2012 AppendicesCover Page

APPENDICES


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APPENDIX A

STANDARD COST PLAN REPORTFORMAT


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FORMAT FOR STANDARD COST PLAN REPORT

Each Cost Plan Report must include the following standard headings (as indicated bynumbered, bold text) and content as described in dot-points below:

1.0 Executive Summary

Inclusive of an estimate budget comparison

2.0 Basis of Cost Plan

Summary of the information used as the basis for the specific Cost Plan.

2.1 Introduction

A concise note on the status of the project.

2.2 Scope of Project A concise description of the project including location, building type,

number of storeys, service level and service objectives, majordepartments, bed numbers, theatre numbers, etc.

2.3 Outline of Cost Plan

An outline of the level of cost plan, design stage, method of preparation,methodology of pricing, etc.

2.4 Specific Inclusions

A schedule of items and allowances included in the Cost Plan. E.g. Miningsubsidence allowance, radiation shielding to imaging theatres, Contractorsdesign fees, shell space etc.

2.5 Specific Exclusions

Exclusions other than GST must be avoided. Items such as fit outs bytenants are to be recorded as work by others outside the Project Scope.

2.6 Drawings & Information Used

A schedule of all drawings, specifications, reports and the like used in thepreparation of the cost plan.

2.7 Area Measurement

A schedule of gross floor areas (GFA) on a departmental basis;

A schedule of Travel and Engineering areas;

A schedule of unenclosed covered areas (UCA);

A summary of all building areas; and,

Where areas can be measured there must be a reconciliation of measuredareas to the SOA.

2.8 Procurement and Market Assumptions

An outline of the proposed procurement method, anticipated marketconditions and any other factors likely to affect the pricing of the Project.


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2.9 Escalation

Confirmation of the base date of the cost plan and the assumption used forcalculating escalation.

2.10 Locality Index

Confirmation of the locality factor used and basis of applying factor.

2.11 Exchange Rate

Exchange rate applicable for overseas procured items including FF&E.

2.12 Asset Acquisition & Asset Realisation

Details of land purchases included in estimate and any asset realisationsrelied upon.

2.13 Risks and Contingencies Details of specific risks having a bearing on the estimate;

Contingency allowances included in estimate; and,

Value Management workshops undertaken.

2.14 ESD and Sustainability Initiatives

A schedule of items and allowances

2.15 Staging Costs

A schedule of assumptions and allowances.

2.16 Benchmarking

Details of other projects upon which benchmarking has been undertakenand details of major inputs; e.g. Building cost/HPU/bed, Building cost/unit(e.g. theatre/bunker), FF&E cost/m2 FF&E cost/unit (e.g. theatre/bunker),Fees etc..

2.17 Fees

Details of fee allowances.

2.18 FF&E Details of FF&E allowances; and,

Summary of FF&E cost report.

2.19 ICT

Details of ICT allowances; and,

Summary of ICT cost report.

2.20 Budget Reconciliation

Full reconciliation of cost plan against budget and previous cost plan.Reconciliation of each cost plan to be maintained progressively so that allcost plan adjustments are progressively visible.

2.21 Life Cycle Cost


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Refer to separate HI document Life Cycle Costing Guidelines.

3.0 Cost Plans

Cost Plans are to be included as applicable and to the pro-forma as supplied in Appendix Cof this Document (Cost Planning and Reporting Standards).

3.1 Cost Plan Summaries

Include for Cost Plan summaries as required for the particular Cost Planstage.

3.2 Cost Plan

Include the detailed cost plan.


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APPENDIX B

PRO-FORMA FOR STANDARDCOST PLAN


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COVER PAGE:

COST PLAN REPORT

NUMBER[Ref]

for

[PROJECT PHASE/ PART]

[PROJECT NAME]

[PROJECT LOCATION]

[Date]

Prepared by[insert logo or name of company]

Prepared for:


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INSIDE COVER PAGE:

CONTENTS1. Executive Summary

2. Outline of Cost Plan

2.01 Introduction

2.02 Scope of Project

2.03 Basis of Cost Plan

2.04 Specific Inclusions

2.05 Specific Exclusions

2.06 Drawings & Information Used

2.07 Area Measurement2.08 Procurement & Market Assumptions

2.09 Escalation

2.10 Locality Index

2.11 Exchange Rate

2.12 Asset Acquisition & Asset Realisation

2.13 Risks & Contingencies

2.14 ESD & Sustainability Initiatives

2.15 Staging Costs

2.16 Benchmarking

2.17 Fees

2.18 FF&E

2.19 ICT2.20 Budget Reconciliation

2.21 Life Cycle Costs

3. Cost Plans

3.01 Cost Plan Summaries

3.02 Cost Plan

Appendices[List Appendices]

PROJECT CONSULTANTS

HI Project Director: [insert name]

Project Manager: [insert name and company]

Cost Manager: [insert name and company]

Architect: [insert name and company]

Structural & Civil Engineer: [insert name and company]

MEP Services Engineer: [insert name and company]

Landscape Architect: [insert name and company]

[Insert others or delete as appropriate]

QUALITY SYSTEM STATUS

Revision No: ____ [insert] Issue Date: _________[insert]

Controlled Doc No: ______[insert] Checked By: _________[insert]

Distribution: _______________________________________________[insert]

Header

Footer


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PAGES:

1 INTRODUCTION

This Report has been prepared by _____________________________ [insert company name].

The Report is based on information provided by _________________________________ [insert]

and includes all works completed up to the end of _________ [date] and forecast final cost of the

Project to completion.

[INSERT OTHER TEXT AS APPROPRIATE]

[INSERT REMAINDER HEADINGS AND BODY TEXT AS PER CONTENTS LIST]

Header

Footer


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APPENDICES SECTION COVER PAGE:

APPENDICES

Header

Footer


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OTHER APPENDIX COVER PAGE:

APPENDIX [letter]

[NAME OF APPENDIX]

[INSERT DOCUMENTS ON FOLLOWING PAGES]

Header

Footer


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APPENDIX C

PRO-FORMA FOR STANDARD COST PLANSUMMARIES


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12518 6.0 rlbrpts 6.9 nswhealthcpguidelines

CP1 COST PLAN SUMMARY Job Ref.

NPWC /Cost Plan

Single / MultipleBuilding Project

Building Type Code Project / Building Job Ref.

Location Date BPI

Current

Client Tender

Locality Index

Physical Cost / Other Factors

Full Aream2

Area%

CostWeight

%

CurrentBuilding Cost

$Cost/m2

$Cost

Fully Enclosed Cov. Area 100 FECARate/Cost

Unenclosed Cov. AreaUCARate/Cost

Gross Floor Area (GFA) Building Rate / Cost

Departmental Area Total Current $ Tenders $

Travel & Eng Area Total Net Construction Cost

Area Efficiency Gross Construction Cost

No. of Storeys * Total Project Cost

Building Height * End Total Cost

Floor / Floor Height * Type of Contract:

Wall / Floor Area Ratio * Time for CompletionPOP Ratio * Special Factors:

Facility Scope- Bed numbers- Bed numbers/m2

Level of facilityLocational factorsProportion of new build/refurbishmentExtent of refurbishmentAllowances for significant abnormals

FF&E (% of ConstructionCost)

Shape / Description:

Drawing References:

* Not included in Multiple Building Project SummaryNo. GCC/No. TEC/No

Internal Car Spaces


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CP4 ELEMENTAL SUMMARY Job Ref.

PROJECT:

G.F.A. : m2 BUILDING:

Code Element%BC

Cost / m2$

Cost$

1 SB Substructure

2 CL Columns

3 UF Upper Floors

4 SC Staircases

5 RF Roof

6 EW External Walls

7 WW Windows

8 ED External Doors

9 NW Internal Walls

10 NS Internal Screens and Borrowed Lights

11 ND Internal Doors

12 WF Wall Finishes

13 FF Floor Finishes14 CF Ceiling Finishes

15 FT Fitment

16 SE Special Equipment

17 SF Sanitary Fixtures

18 PD Sanitary Plumbing

19 WS Water Supply

20 GS Gas Service

21 SH Space Heating

22 VE Ventilation

23 EC Evaporative Cooling

24 AC Air-conditioning

25 FP Fire Protections

26 LP Electric Light and Power

27 CM Communications

28 TS Transportation Systems

29 SS Special Services

00 PR Proportion of Preliminaries

BUILDING COST (BC) 100

30 CE Centralised Energy Systems

31 AR Alterations and Renovations

32 XP Site Preparation

33 XR Roads, Footpaths and Paved Areas

34 XN Boundary Walls, Fencing and Gates

35 XB Outbuildings and Covered Ways36 XL Landscaping and Improvements

37 XK External Stormwater Drainage

38 XD External Sewer Drainage

39 XW External Water Supply

40 XG External Gas

41 XF External Fire Protections

42 XE External Electric Light and Power

43 XC External Communications

44 XS External Special Services

45 XX External Alterations and Renovations

00 PR Proportion of Preliminaries

46 YY

CONSTRUCTION COST - CURRENT / TENDER DATE


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CP5 TRADE SUMMARY Job Ref.

PROJECT:

G.F.A. : m2 BUILDING:

No Trade%BC

Cost / m2$

Cost$

1 General Items2 Preliminaries

3 Demolition

4 Groundworks

4.1 Excavation

4.2 Filing and hardcore

4.3 Paper and plastic membranes

4.4 Underpinning

4.5 Rock stabilisation

5 Piling

5.1 Driven piling

5.2 Cast in-situ piling

6 Concrete

6.1 In-situ concrete

6.2 Formwork

6.3 Permanent metal formwork system

6.4 Reinforcement

6.5 Prestressing

6.6 Slip formed construction

6.7 Precast concrete

6.8 Tanking

7 Masonry

8 Stonework

8.1 Natural stonework

8.2 Artificial stone, terracotta and similar work

9 Structural steel

10 Metalwork

11 Woodwork

12 Glazing

13 Hardware

14 Access floors

15 Partitions

16 Roofing

17 Suspended ceilings

18 Windows

19 Doors

20 Finishes

20.1 In-situ applied finishes

20.2 Metal lathing

20.3 Plasterboard, fibrous plaster, plaster acoustic tiles and similar

20.4 Tile, slab, block or sheet finishes, pavings and carpets

20.5 Division strips and inserts

21 Painting

22 Fitments

23 Hydraulics

24 Drainage

25 Electrical Installations

26 Mechanical Installations

27 Exterior Elements

27.1 Landscaping

27.2 Roadworks

CONSTRUCTION COST CURRENT / TENDER DATE


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CP6 PLANNING UNIT COST PLAN DETAILS Job Ref.

COST PLAN SUMMARY PROJECT:Date ofEstimate :

BUILDING:

OPTION:

Base Date ofEstimate forescalation :

PLANNING UNIT Briefed Measured

H.P.U. Aream2

H.P.U. Aream2

Cost$

Cost$/m2

1.00 General Acute1.01 Medical m21.02 Surgical m21.03 Paediatrics m21.04 Mental Health m2

Sub total - - $ -

2.00 Sub Acute2.01 Mental Health m2

2.02 Drug & Alcohol/Detox Unit m22.03 Assessment and Rehabilitation m22.04 Rehabilitation and Day Hospital m22.05 Palliative Care m22.06 Abulatory Care m2

Sub total - - $ -

3.00 Obstetrics3.01 Birthing/Delivery Unit m23.02 Maternity m23.03 Gynaecology m23.04 Neonatal m2

Sub total - - $ -

4.00 Procedures4.01 Emergency m24.02 Medical Imaging m24.03 Day Procedures m24.04 Intensive Care m24.05 Operating Suite m24.06 Mortuary/Post Mortem m2

Sub total - - $ -

5.00 Non Inpatient5.01 Outpatients and Allied Health m25.02 Dental m25.03 Blood Bank m25.04 Pathology m25.05 Sexual Assault m2

5.06 Pharmacy m25.07 Imaging m25.08 Oncology m25.09 MRI / PET / Cyclotron ect. m2

Sub total - - $ -

6.00 Corporate Services6.01 Linen m26.02 CSSD m26.03 Engineering Services m26.04 Stores m26.05 Domestic Services m26.05 Security m26.07 Biomedical m26.08 Food Services m2

6.09 Cafeteria (Staff/Pubic) m26.10 IT Services m26.11 Medical Records m2

Sub total - - $ -


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COST PLAN SUMMARY

PLANNING UNITBriefed Measured

H.P.U.

Aream2

H.P.U.

Aream2 Cost$ Cost$/m2

7.00 Administration7.01 Child Care m27.02 Main Entry/Reception m27.03 Admissions and Discharge m27.04 Nursing Admin m27.05 Conference, Education and Library m27.06 Research m27.07 Staff Accommodation m27.08 Tenants m27.09 Area Executive m2

Sub total - - $ -

8.00 Community Health8.01 Mental Health m28.02 Child Health m28.03 Dental m28.04 Community Health m2

Sub total - - $ -

9.00 Alterations to existing Structures(Sub divide alterations)

10.00 Travel and Engineering10.01 Inter Unit Space m210.02 Plant Rooms and Ducts m2

(sub divide T&E for alterations) m2

Sub total - - $ -

BUILDING COST (BC) - - $ -

11.00 Site Specifics e.g.External Works itemExternal Services itemStormwater Detention itemTemporary Works itemEarthquake Provisions itemHeritage Provisions item

12.00 Project Specifics e.g.Central Energy and Plant itemLifts No

PABX etc itemCar Park m2Courtyard m2

NET CONSTRUCTION COST (NCC) - - $ -

13.00 Allowances, overheads and MarginsMain Contractor's Preliminaries itemMain Contractor's Overheads and Profit itemStaging Costs itemLocality Allowance item

GROSS CONSTRUCTION COST (GCC) - - $ -


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COST PLAN SUMMARY

PLANNING UNITBriefed Measured

H.P.U.

Aream2

H.P.U.

Aream2

Cost$

Cost$/m2

18.00 Special ProvisionsEscalation itemProlongation and Delay Costs itemContributions itemOther item

19.00 ContingenciesDesign Contingency % of GCC itemPlanning Contingency % of GCC itemConstruction Contingency % of GCC ItemClient Contingency % of GCC item

NET END TOTAL COST (NETC) Sub total - - $ -

HI MANAGEMENT COSTS% of ProjectEnd Cost

END TOTAL COST (ETC)

Notes :All costs must exclude GST

14.00 FeesConsultant Fees % of GCC item

Authority Fees and Charges % of GCC itemArea Health Division Costs % of GCC item

15.00 FF&EFurniture, Equipment, Artworks(Sub divide FF&E into categories) % of GCC item

16.00 ICTInfrastructure and Systems(Sub divide ICT into categories) % of GCC item

17.00 Land Acquisition & Property SettlementLand Purchase itemProperty Settlements item

TOTAL PROJECT COST (BASE COST) - - $ -


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APPENDIX D

PRELIMINARIES PRO FORMA(INDICATIVE)


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APPENDIX E

CONTINGENCIES


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Contingency Requirements

1 2 3 4 5 6 7 8

Nr HI Contract Stage (Completion) Cost Stage Procurementresponsibility

Project Contingency(% costs)

Client Contingency(% costs)

Total Contingency(% costs)

TreasuryGuidance (%)

0 CSPHI Benchmarking Tool

Includes Project Cont

C Only

AllHI

Design 5

25% 40% 33 100%DD&C Const 5

D&C Planning* 5

1Master Planning

Health Facility Briefing System

Cost Plan A


C Only Design 5

15% 30% 33 100%DD&C Const 5

D&C Planning* 5

2

Feasibility - Concept Design (Business

Case)

Cost Estimate P50*

Cost Plan B


C Only Design 5

10% 25% 18 - 33%DD&C Const 5

D&C Planning* 5

3 Schematic Design (PDP)

Cost Plan P70*

Cost Plan C1


D&C Pre Tender Estimate

C Only Design 2.5

10% 20% 11 - 18%DD&C Const 5

D&C Planning* 2.5

D & C Procurement Point

5 Design Development

Updated Cost Plan P80*

Cost Plan C2


DD&C Pre Tender Estimate

C Only HI Design 2.5

7.5% 15% 11 18%DD&C HI Const 5

D&C Con Planning* 0

DD & C Procurement Point

6 Construction Documentation

Revised Cost Plan P90*

Cost Plan D

Includes Project ContConstruct Only Pre TenderEstimate


5% 12.5% 5 - 11%DD&C Con Const 5

D&C Con Planning* 0

Construct Only Procurement Point

7 Start of Construction Contract


2.5% 10% n/aDD&C Con Const 5

D&C Con Planning* 0

8 Project Commissioning Final Account

C Only HI Design 0

0% 2.5% n/aDD&C Con Const 2.5

D&C Con Planning* 0


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Accompanying Notes

Column 1provides a stage number for each design stage during the process

Column 2Identifies the HI Contract Stage Terminology

Column 3Identifies the Cost stages alig ned to the design stages

HI Benchmarking Tool

The HI Benchmarking tool is being designed to provide a high level budget, the tool utilises historic data and

considers a limited number of parameters;

Facility scope (bed numbers / m2)

Level of facility

Locational factors

Proportion of New Build / Refurbishment Extent of Refurbishment (if any) Allowances for significant abnormals

At present this is not undertaken in a formally recorded process, the intention is to develop a tool to allow

AHSs to provide high level budget information in line with HI.

Health Facility Briefing System

The HFBS system (subject to some development) will have the ability to generate a budget estimate which

is more sophisticated than the benchmarking tool. One of the issues raised in the initial consultation stage

related to the QSs continuity of involvement in the overall process, and that the limited extent of the

historic data that they hold on which they base their budgets. The HFBS system holds a significant amount

of historic information, both in terms of a ctual achieved costs and on Australia wide projects, it therefore

provides a much more extensive basis for budgeting.

Cost Plan AD have already been defined within Health

Probability (P)Each cost plan has a probability rating this relates to the level of certainty that cost plan

providesP 70 represents a cost plan that has a 70% chance of being delivered within budget, as the stages

progress the Probability level increases. The benefit of this is that the cost plan represents a realistic

expectation of the level of certainty based on the information available. The P level P50 for example does

not represent that the budget is likely to be exceeded by 50%, but tha t there is a 50% chance of the budgetbeing exceeded, the contingency sums still need to accurately reflect the level of risk for the project at each

stage. The probability level includes the project contingency allocated to each design stage.

EscalationEscalation should be accounted for on the sum total of the base cost, project contingency and

client contingency. Costs should be expressed at a base point in time (we have currently standardised

projects currently to 30/07/08) and as a total escalated in accordance with the proposed delivery program.

This allows for delivery timescales to be flexed and a revised escalation calculation assessed from the base

point, it also allows us to raise awareness of the impact of time on the costs of the project.

Column 4 - Procurement related Responsibility

The Framework as detailed needs to be applied to a number of different procurement options, the broad

philosophy is that regardless of the chosen procurement route the total design work needs to be

completed, the difference is in the party that is responsible for the design activity. The summary table

considers the following procurement criteria;

Construct Only (full design)

Design & Construct (D&C)

Design Development & Construct (DD&C)

The key difference between D&C and DD&C relates to the extent to the design that the contractor

is expected to undertake. D&C requires a greater extent of contractor design than a DD&C.

At this stage PPP and Construction Management have not been fully considered.

Column 5 & 6 - Contingency

Contingency has been divided into two separate elements, with two separate owners t o recognise the

ownership of risk in a project. No adjustment or allocation of contingency shall occur without HI Directorapproval.

Project Contingency

This is intended for risks that can be owned and managed by the project, based on the information available

to them at the appropriate stages. The QS should make sufficient provision for risks as identified within the

three categoriesDesign, Construction and Town Planning.

Client Contingency

This is intended to capture risks outside of the project that the project team can have little or no influence

over. Items such as scope definition, changes in legislation, best practice and government policy, and the

impact of government reprioritisation.

Risk should generally transfer from the Client contingency to the project contingency, during development

of the project, and then either be realised or mitigated, for example the summary table shows project

contingency static at 15% for the initial phases, as SPP and PDP relate more to scope definition which is

provided for within the client contingency that falls during these stages from 20% to 5%, as the project is

developed and defined.

The percentages indicated in the summary table are taken as normal percentages, in all cases this

percentage will be reviewed by the PDPL or PDPR in conjunction with the project team to establish theappropriateness of the allowance compared to the known and unknown risks of the project. As such the

allowance will be increased and decreased depending upon the level of risk assessed in the project.

At all stages the cost plan produced by the QS will include the project contingency, but exclude the client

contingency, it is important that the two are kept separate to allow the management of the contingency

sums. Both contingencies are based on the base costs identified by the QS rather than a client contingency

on base cost and project contingency.

Column 7Total Allocated Contingency

This column identifies the total normalrisk allocation for the projecta combination of the project and

client contingencies.


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Column 8 - Treasury Guidance on Contingency

Treasury have provided guidance (within the DraftCapital Project Estimating (for construction) version no.1

dated 20th

December 2006Budget estimating & contingencies, pages 13 - 19), which has been considered

as part of developing this analysis. This guidance identifies what Treasury considers to be appropriate risk

allocations during a projects development. It is noted that any risk allocation that is significantly above or

below the range identified would have to be substantiated.

The risk percentages noted by Treasury represent a proportion of the total project costs, so an allocation of

50% for risk, actually represents 100% of base cost. Percentages in column 10 have been amended from the

report to reflect risk as a % of base costs.


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APPENDIX F

PRO-FORMA FOR STANDARDCASHFLOW


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APPENDIX G

PRO-FORMA FOR VARIATIONREGISTER


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APPENDIX H

FORMAT FOR FINANCIAL (MONTHLY)REPORTING


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FORMAT FOR FINANCIAL (MONTHLY) REPORTING

Each Cost Plan Report must include the following standard headings (as indicated bynumbered, bold text) and content as described in dot-points below:

Refer to Appendix I for Pro-forma for Financial (Monthly) Report.

1.0 Financial Report Structure

Each Financial Report must include the following:

Introduction;

Project Summary;

Variation Report;

Cashflow Report; and,

Appendices, incorporating detailed:

Cost Report;

Cashflow Report; and,

Sundry Reports as appropriate.

Introduction

The introduction of the Financial Report is to include fundamental information on:

Company responsible for preparing the Financial Report; Period for which the Report is valid; and,

Information provided and on which the Report is based.

Project Summary

The Project Summary of the Financial Report is to include the following cost data abstractedfrom the HI Portal Financial Report:

Forecast Final Cost.

The Project Summary must also include the following supplementary sections:

Risk Position, detailing

Original contingency amount;

Variations;

Remaining contingency;

Statement of adequacy of contingency to complete the project; and,

Statement of committed and uncommitted costs.

Budget Position, detailing:

Initial Budget;

Budget Transfers;


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Funded Scope Changes;

Current Budget; and,

Variance of Current Budget against Forecast Final Cost.

Explanatory Notes, detailing any:

Specific exclusions;

Specific inclusions;

Threats to the project; and,

Monthly movements in cost or contract status.

Variation Report

The Variation Report is to be linked to the detailed variation register included in the Appendicesand to include the following:

Value/number of approved variations; Value/number of unapproved submitted variations;

Value/number of un-submitted variation; and,

Value of proposed variations.

Cashflow Report

The Cashflow Report is to be linked to the detailed cashflow included in the Appendices and toinclude the following:

Approved project cashflow;

Indicative cashflow for current financial year;

Monthly update of forecast to actual; and,

Monthly movements/changes.

Appendices

The Appendices are to include detailed Monthly Reports in accordance with the Standard Pro-forma for:

Cost Plan information;

Variations Register (refer to Appendix G of this Document, Cost Planning and ReportingStandards for pro-forma);

Cashflow Report (refer to Appendix F of this Document, Cost Planning and ReportingStandards for pro-forma); and

Other Reports, Correspondence, information etc., as appropriate.


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APPENDIX I

PRO-FORMA FOR STANDARDFINANCIAL (MONTHLY) REPORT


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COVER PAGE:

FINANCIAL REPORT

NUMBER[Ref]

for

[PROJECT NAME]

[PROJECT LOCATION]

[Date]

Prepared by[insert logo or name of company]

Prepared for:


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INSIDE COVER PAGE:

CONTENTS

1. Introduction

2. Project Summary

2.1 Forecast Final Cost

2.2 Risk Position

2.3 Budget Position

3. Variation Report

4. Cashflow Report

Appendices

[List Appendices]

APPENDIX A - COST PLAN INFORMATION

APPENDIX B - VARIATION REGISTER

APPENDIX C - CASHFLOW REPORT

[INSERT OTHERS AS REQUIRED]

Header

Footer

PROJECT CONSULTANTS

HI Project Director: [insert name]

Project Manager: [insert name and company]

Cost Manager: [insert name and company]

Architect: [insert name and company]

Structural & Civil Engineer: [insert name and company]

MEP Services Engineer: [insert name and company]

Landscape Architect: [insert name and company]

Insert others or delete as a ro riate

QUALITY SYSTEM STATUS

Revision No: ____ [insert] Issue Date: _________[insert]

Controlled Doc No: ______[insert] Checked By: _________[insert]

Distribution: _______________________________________________[insert]


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PAGE 1:

1 INTRODUCTION

This Report has been prepared by _____________________________ [insert company name].

The Report is based on information provided by _________________________________ [insert]

and includes all works completed up to the end of _________ [date] and forecast final cost of the

Project to completion.

Header

Footer


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PAGE 2:

2 PROJECT SUMMARY

2.1 Forecast Final Cost

1. Authority Fees $ XX

2. Network and NSW HI costs $ XX

3. Professional fees $XX

4. Land $ XX

5. Early works and decanting $ XX

6. Construction $ XX

7. Major equipment and FF&E $ XX

8. ICT $ XX

9. Escalation $ XX

10. Commissioning and relocation $ XX

11. Other $ XX

12. Contingency $ XX

Forecast Total Project End Cost $ XX

2.2 Risk Position

1. Budget design contingency $ XX

2. Budget planning contingency $ XX

3. Budget construction contingency $ XX

4. Budget executive contingency $ XX

Total budget contingency $ XX

5. Approved variations (X no) $ XX

6. Unapproved submitted variation (Xno) $ XX

7. Unapproved variations (Xno) $ XX

8. Proposed variations $ XX

Total proposed and actual variations $ XX

9. Remaining contingency $ XX

10. Committed costs $ XX

11. Uncommitted cost $ XX

12. Percent committed % XX

2.3 Budget Position

1. Initial Budget $ XX

2. Budget Transfers $ XX

3. Funded Scope Changes $ XX

4. Current Budget $ XX

Variance Current Budget vs. Forecast Final Cost $ XX

Header

Footer


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PAGE 3:

2.4 Explanatory Notes

[Insert text]

3 VARIATION REPORT

[Insert text]

4 CASHFLOW

[Insert text]

Header

Footer


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APPENDICES SECTION COVER PAGE:

APPENDICES

Header

Footer


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APPENDIX A COVER PAGE:

APPENDIX A

COST PLAN INFORMATION

[USING PRO-FORMA AS APPLICABLE]


Header

Footer


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APPENDIX B COVER PAGE:

APPENDIX B

VARIATION REGISTER


Header

Footer


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APPENDIX C COVER PAGE:

APPENDIX C

CASH FLOW REPORT

[USING PRO-FORMA AS APPLICABLE]


Header

Footer


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OTHER APPENDIX COVER PAGE:

APPENDIX [letter]

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