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COST PLANNING AND REPORTING STANDARDS

Definitions & Standard Pro-forma

October 2012
Version 2.0 - FINAL

PREPARED FOR:

First published
th
Version 2.0 FINAL Issued 9 October 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-reportingstandards_ver-2.0_final_20121009.pdf

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 commencing 2nd October 2012.
What is new?
This is the first issue of this document in its current format. This Document supersedes any previous Cost
Planning or Cost Management documents issued by NSW Health.
Contacts
Anthony Manning
Health Infrastructure
02 9978 5402
Anthony.Manning@hinfra.health.nsw.gov.au
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.

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
CP4
CP5
CP6

COST PLAN SUMMARY


ELEMENTAL SUMMARY
TRADE SUMMARY
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

Cost Planning and Reporting Standards

1.

INTRODUCTION AND INSTRUCTIONS FOR USE

1.1

Description

This document provides standard information for Cost Managers to prepare cost
information and documentation in the planning, design and implementation of new and
refurbished healthcare facilities in NSW over $10million in value (principally). Information in
this document is referred to throughout the text as: Cost Planning and Reporting
Standards; this Document; or these Standards.
The purpose of these Standards is to ensure consistency in respect of the cost deliverables
of the Project and a framework for the uniform preparation and presentation of cost advice
by the Cost Manager to Health Infrastructure (HI).

1.2

Objective of this Document

The main objectives of these Standards are:

1.3

To provide general guidance to Project team members in the design and


implementation of health care facilities in NSW for HI;

To provide a single source reference document to define the requirements for cost
planning 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.

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 for
inclusion 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-formas
and the like for Cost Plans and Financial Reporting.

1.4

Application

This Document is applicable to the entire Project Team to comprehend, support and apply
to all HI Projects.
Without limiting the professional processes of the Cost Manager, the User of this Document
is tasked with complying with the pro-forma documentation and structures for deliverables
and submissions to HI.
The application of these Standards is to ensure consistent information is presented to HI
during 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 investigations
as well as any necessary benchmarking to validate the allowance as provided. In the
application of these Standards, where the allowances are significantly varied by the Cost
Manager, 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 of
these Standards together with advice and progressive thinking on how this intent can be
best 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 accordance
with AIQS and RICS best practice.
All HI Projects must be delivered in accordance with the requirements of all relevant Codes
and Regulations.

1.5.1 Related Documents from HI


This Document forms part of a series of HI documents developed for use in design
and delivery of healthcare facilities in NSW.
To fully comprehend these Standards, Users must make themselves familiar with
the documents in this Section (1.5), as well as the relevant parts of any specific
reference documents noted in individual sections within these Standards.
The following HI documents (listed in order of relative importance) are associated
with this Document, including but not limited to:
a) Part F of the capital consultants Request For Tender documents: this
forms the Consultants scope of services and deliverables in the
administrative 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 Strategy HI Strategy and Documentation.

1.5.2 Other Related Documents


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

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Cost Planning and Reporting Standards

a) Australian Health Facilities Guidelines (all parts);


b) Australian Health Facilities Guidelines, Part F - Project Implementation
680 Furniture, Fittings and Equipment; and,
c) Australian Cost Management Manual (ACMM).
The provisions or requirements of other documents and/ or guidelines will need to
be 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 of
referenced guides, codes and standards applicable. The user of this Document
must verify the latest guidance material available at the time work is to be carried
out.
The minimum requirements must be those listed in legislation, mandatory and
relevant standards and accepted good practice guides relevant to healthcare
facilities.

1.6

Review and revision

A process of review and revision has been developed for these Standards. HI and industry
comment 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 the
Standards 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 the
following table.
Item

Definition

Business Case

A budget established as part of the Business Case process developed in


accordance 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 fittings
and all services within and under the building, the external works and
services within the boundaries of the site and connection to Authorities
services at the perimeter of the site, Project specific costs within the
boundaries 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 for
Gateway Review(s).

Greenstar

A comprehensive, national, voluntary environmental rating system that


evaluates the environmental design and construction of buildings. The
system has been developed by the Green Building Council of Australia.

Gross
Cost

Construction

Project risk register

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The Net Construction Cost plus preliminaries, overheads and profit,


staging and locality allowance
The document prepared by the Project Manager (with input from the
Project Team) and issued to HI on a monthly (or other agreed) basis.
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Cost Planning and Reporting Standards

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 and


supporting 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 11 Engineering Services Design Guidelines

VM

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:

2.2

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 and


programme; and,

Compliant with the Reporting Requirements of the Consultants contract.

Inclusive of all applicable allowances and imposts including any applicable


allowance for the carbon pricing mechanism

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 1 Master Planning

Phase 1 - Planning

Cost Plan B (P60)

Part 2 Feasibility 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

Part 5 - Contract Documentation

Phase 2 - Implementation

Cost Plan D (P80)

Cost Plans are generally to be prepared in accordance with the Australian Cost
Management 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 being
delivered 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 level
of certainty based on the information available.
The P level P70, for example, does not represent that the Budget is likely to be exceeded
by 70%, but that there is a 30% chance of the Budget being 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.

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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Cost Planning and Reporting Standards

Business Case level in subsequent Cost Plans; notwithstanding that the GCC may
increase. The rationale for this is that the works are to be designed to the Business Case
Budget 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 cost
plans are developed and can only be amended upon agreement with the HI Project
Director.
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 standard
Contents list as included in Appendix A. It must also be based on the Pro-forma as supplied
in Appendix B.
The Cost Plan must also include the appropriate Cost Plan Pro-Forma(s) provided for
reference in Appendix C.
The applicable pro-formas to be presented with each different type of Cost Plan are as
identified in the following table.
Cost Plan

Pro-forma CP1
required

Pro-forma CP4
required

Pro-forma CP5
required

Pro-forma CP6
required

Cost Plan A

required

required

Cost Plan B

required

required

~
~

required

required

Cost Plan C1

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 include
both the HPU areas together with an allowance for intra-departmental circulation. They
generally exclude inter-departmental travel and engineering allowances.
The SOA provided must be interrogated to identify if any travel and engineering allowances
have been included.
Allowances for travel and engineering must be measured from the drawings. Where no
drawn 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 by
reference to the Project Design Team.
Note that central energy buildings, hospital streets, link corridors, bridges and the like must
be included as Project Specifics and not deemed part of travel and engineering.

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2.7

On-Costs
2.7.1 ESD Initiatives
The HPU cost/m2 rates must include best practice and minimum 4-Star Greenstar in
respect of the capital works that make up a HPU. ESD allowances are intended for
initiatives above 4-Star Greenstar and beyond best practice, to improve
sustainability, or meet Government policy initiatives such as energy efficiency and
water resource management.
For ESD Initiatives the following allowances must be made:

4% of Construction Cost (CC) where Total Project Cost (TPC) is less than
$100m; or,

2.5% of Construction Cost (CC) where Total Project Cost (TPC) is greater
than $100m.

Once design information is available it is anticipated that the ESD Initiatives costs
will be built up and replace the percentage allowance(s).

2.7.2 Preliminaries
Preliminaries allowance must take account of:

The proposed programme;

The manner (methodology) in which the works will be undertaken; and,

The specifics of the site.

Where Preliminaries allowances are based on percentages, the percentages must


be benchmarked from similar projects executed under similar conditions and take
account of market forces.
A Preliminaries Cost Plan must be developed no later than Cost Plan C1 and
updated for later Cost Plans. An indicative format is provided in Appendix D,
Preliminaries Pro-Forma (Indicative).

2.7.3 Margin
Margin allowance must take account of the Contractors profit and offsite overheads
as well as any contractual risk to be borne.

2.7.4. Staging Costs


Staging Costs include the cost of:

Temporary/ staged decanting of the NSW Healths operations;

Temporary works necessary as a consequence of the need to maintain an


existing healthcare facility during the works and maintain the NSW Healths
operations;

Works and costs consequential on a programmed staging of the works; and,

Costs associated with temporary services resulting from engineering


services shutdown to accommodate Project works (e.g. providing gas
bottles, temporary generators, bottled water etc.)

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2.7.5 Locality Allowances


The locality allowance is added to take account of factors affecting labour and
material costs and/or the loss of competition that can occur in remote areas. There
is 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 apply
Locality Allowances derived from their own investigations of the anticipated
marketplace, resources available in the locality and other factors that will have a
bearing on the cost of the work.
The Locality Allowance must be identified separately in Cost Plans A and B. The
locality allowances may be built into the rates used or applied as a separate
allowance in Cost Plans C and D.
The Locality Allowance must be either built into the rates or shown separately as
appropriate, but must not be in both.

2.8

Contingencies

HI has prepared guideline Contingency allowances for each Phase of a Project. Refer to
Appendix E.
Whilst guideline Contingencies have been prepared, it is imperative that the Cost Manager
develop Project-specific Contingencies based upon the risk registers developed by the
Consultant Team.
From and including Cost Plan C the adequacy of the contingency must be reviewed by
undertaking a costing and probability analysis of the Project Risk Register. The Cost
Manager, in conjunction with the Project Manager, is to continuously review and update the
Register 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 on
the information available to them at the appropriate stages. The Cost Manager
must make sufficient provision for risks as identified within the three categories
Design, Construction and Town planning:

Design development contingency % of gross construction cost required


whilst developing design issues;

Town planning contingency % of gross construction cost, required whilst


Town planning issues are resolved; and,

Construction contingency % of gross construction cost, an allowance to fund


client risks during construction.

2.8.2 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 HPU
guidelines, changes in legislation, best practice and Government policy and the
impact of Government reprioritisation.
Risks must generally transfer from the Client Contingency to the Project
Contingency, 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 the


appropriateness 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 Cost Manager will include both the
Project Contingency and the Client Contingency. It is important that the two are
kept separate to allow the management of the contingency sums. Where
percentages are applied to both Project and Client contingencies are calculated on
the 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 Projects
Executive 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 Projects Planning and
Development 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 Economic
Appraisal of the Project together with Gateway facilitation costs.
Consultant Fees must be benchmarked and based upon the Cost Managers
experience 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 external
agencies 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 Plan
D); 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 the
1.5% allowance.
The LHD Fee is to cover the costs of project support by the LHD relating to the
capital 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:

2.10

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

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;

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

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

Equipment:
o

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

Non-clinical equipment, which has a specific therapeutic or diagnostic


purpose (e.g. wheelchairs, IV poles, mechanical lifts); and,

Major Medical Equipment, which is high-cost clinical diagnostic and


treatment electromedical items that may require specialist services (water,
electricity, gas, data networking and/or airconditioning) to be operational
before commissioning (e.g. linear accelerator, MRI, dental chair, x-ray
machine).

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 for
transfer.

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 to
AHFG rates/m2 for each HPU (or department rates), as well as benchmarking from
other 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 HI
template 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 all
Cost 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 and
transfer). Each type is further defined to show costs for Major Medical (any item
that requires a final installation or shop drawing) and Minor Medical items. The Cost
Manager is to note the following:

Costs for New Group 1 Major Medical items 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 Medical items 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.

2.10.4 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 procurement
and installation). The Budget Template does not show costs for Group 1 items, as
these 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 costs
associated with resources are both accounted for and transparent. If the costs are
accounted 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;

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

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


(AGV);

Networking devices which facilitate the LANs and WLANs, including


switches, routers, racks and servers to enable the access layer;

Communications, including Public Address and Messaging Systems, two


way radio and paging systems, voice over WLAN, Digitally Enhanced
Cordless Telecommunication (DECT), Unified Communications (including
legacy PABX and fixed voice);

ICT accommodation, for example, Communications Rooms, Ducts and


Risers.

ICT Functional Systems, which may include:


o

Clinical Information and Services, Point of Care Systems, and Patient


Records Systems;

Building Management Control Systems (BMCS), Programmable Logic


Controllers (PLC) and Supervisory Control And Data Acquisition (SCADA);

Logistics, Supply Chain Management, Stock and Instrument Control;

Patient Entertainment, Comfort, Audio Visual, TV systems;

Education, Research and Training; Hospital


Management and Human Resources; and,

Security, Staff Assist, Nurse Call, Porter, Duress and Orderly Systems, Real
Time Location and Way Finding Services.

Administration,

Asset

Most of the ICT functional systems are included in the building contract except for the
software 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 the
Contractor.

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

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This may include items that the Client has on supplier contract or items for
transfer.

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.

The Project will fund ICT infrastructure associated with the Access Layer, as well
as 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 AHFG
rates/m2 for each HPU (or department rates), as well as benchmarking from other
Projects.
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 HI
template 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 Cost
Reporting is to be completed in the format specified in the Budget Template, which
has predefined formulas embedded into it.

2.11.3 Types of Equipment


The Budget Template is divided into the two types of equipment (new and
transfer). 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 to
monitor costs incurred by the LHD (Group 2 procurement and Group 3 procurement
and installation). The Budget Template does not show costs for Group 1 items, as
these will be reflected in the construction costs.

Version 1.0, June 2012

Page 14

Cost Planning and Reporting Standards

2.11.5 Resource Costs


The ICT Cost Report template is specifically designed to ensure any costs
associated with resources are both accounted for and transparent. If the costs are
accounted 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 clearly
identified. It is important that Escalation from the Base Date to Construction
Commencement 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 the
Cost Manager to apply escalation factors derived from their own investigation of the
anticipated marketplace and Project specifics. Escalation must be accounted for on the sum
total 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 the
elemental and/or trade analysis.

2.13

Cashflow
2.13.1 Generally
Cashflows must reflect when expenditure is anticipated to be accrued and not when
paid, e.g. for the value of work done (vowd) during June, the cost is recorded
against June, not July, which is when the payment certification and payment is likely
to occur.
It is anticipated that the Cashflow is a compilation of the cash flowing of individual
cost centres and individual Construction contracts.
In the Cashflow, Project and Client Contingencies must be shown separately and
consideration must be given to when they are likely to be expended rather than
being cash flowed over the life of the project..
Cashflows must reflect NSW Government financial years that commence on 1 July
annually.
In the Cashflow, FF&E must reflect anticipated expenditure in accordance with the
programme and any deposits and early payments. Generally it is expended 30% in
the 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 the
different rate of expenditure during the planning and delivery phases as well as preand 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 be
presented as included in Appendix F.
The Cashflow Pro-forma has been developed to serve competing interests. During
the Business Case the financial modellers require the Cashflow exclusive of
Escalation. HI for their purposes requires Annual Cashflows prepared that are both
inclusive and exclusive of Contingency.

Version 1.0, June 2012

Page 15

Cost Planning and Reporting Standards

2.13.3
For Cost Plan C and onwards the Cashflow must reflect the project programme
prepared by the Project Manager as updated from time to time and not based upon
standard Cashflow formulae. The programme must identify anticipated delivery
dates of major items of plant and equipment as well as cost significant items. The
Cashflow must reflect the expenditure of these items as lump sums rather than
being 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 allowances
where it is deemed, by the Project Director in consultation with the Project team, that
the 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 and
adjusted by the Contractor, if required, and agreed. An activity based Cashflow shall
be obtained from the Contractor prior to the first progress payment claim, and
preferably at tender time, to assist the vetting. The Contractor is to update the cash
flow at the time of each progress claim.

2.13.5
From PDP onwards the Cashflow shall be monitored in monthly reports by reference
to the PDP approved Cashflow, or other milestone Cashflow s instructed by HI, and
is to be presented as included in Appendix F. Any significant deviations must be
brought to the attention of the Project Director and Project Manager so that
corrective action can be investigated.
Additionally, the Cashflow is to be prepared in the HI Portal Format as included in
Appendix F.

Version 1.0, June 2012

Page 16

Cost Planning and Reporting Standards

3.

FINANCIAL REPORTS

The process of Financial Reporting to HI is via the HI internet Portal as well as by way of a
Monthly 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 the
following table.
Input

Responsibility

Budget

HI Project Director

Commitments

Project Manager (approved by HI Project Director)

Forecast commitments

Cost Manager

Payments

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 to
upload information into the HI Portal as a Financial Report.

3.2.1 Purpose
The purpose of the Monthly Financial Report is to convey the financial status of the
Project by providing information on Project budget status, funding sources,
cashflow, financial risks and be a base data source for PDC, PCG and ESC
governance groups.
The HI Portal Financial Report must form an appendix to the Monthly Financial
Report.

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.

Version 1.0, June 2012

Page 17

Cost Planning and Reporting Standards

APPENDICES

Version 1.0, June 2012

Appendices Cover Page

Cost Planning and Reporting Standards

APPENDIX A

STANDARD COST PLAN REPORT


FORMAT

Cost Planning and Reporting Standards

FORMAT FOR STANDARD COST PLAN REPORT


Each Cost Plan Report must include the following standard headings (as indicated by
numbered, 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, major
departments, 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. Mining
subsidence allowance, radiation shielding to imaging theatres, Contractors
design fees, shell space etc.

2.5

Specific Exclusions
Exclusions other than GST must be avoided. Items such as fit outs by
tenants 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 the
preparation 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 measured
areas to the SOA.

2.8

Procurement and Market Assumptions


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

Cost Planning and Reporting Standards

2.9

Escalation
Confirmation of the base date of the cost plan and the assumption used for
calculating 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 realisations
relied 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 undertaken
and 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 all
cost plan adjustments are progressively visible.

2.21

Life Cycle Cost

Cost Planning and Reporting Standards

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 C
of this Document (Cost Planning and Reporting Standards).
3.1

Cost Plan Summaries


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

3.2

Cost Plan
Include the detailed cost plan.

Cost Planning and Reporting Standards

APPENDIX B

PRO-FORMA FOR STANDARD


COST PLAN

Cost Planning and Reporting Standards

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:

Cost Planning and Reporting Standards

INSIDE COVER PAGE:

Header

CONTENTS
1.
2.

3.

Executive Summary
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 Measurement
2.08
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
ICT
2.20
Budget Reconciliation
2.21
Life Cycle Costs
Cost Plans
3.01
Cost Plan Summaries
3.02
Cost Plan

Appendices
[List Appendices]

PROJECT CONSULTANTS
HI Project Director:
[insert name]
Project Manager:
Cost Manager:
Architect:
Structural & Civil Engineer:
MEP Services Engineer:
Landscape Architect:
[Insert others or delete as appropriate]

[insert name and company]


[insert name and company]
[insert name and company]
[insert name and company]
[insert name and company]
[insert name and company]

QUALITY SYSTEM STATUS

Revision No:
Controlled Doc No:
Distribution:

Footer

____ [insert]

Issue Date:

_________[insert]

______[insert]

Checked By:

_________[insert]

_______________________________________________[insert]

Cost Planning and Reporting Standards

PAGES:

Header

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]

Footer

Cost Planning and Reporting Standards

APPENDICES SECTION COVER PAGE:


Header

APPENDICES

Footer

Cost Planning and Reporting Standards

OTHER APPENDIX COVER PAGE:

Header

APPENDIX [letter]
[NAME OF APPENDIX]

[INSERT DOCUMENTS ON FOLLOWING PAGES]

Footer

Cost Planning and Reporting Standards

APPENDIX C

PRO-FORMA FOR STANDARD COST PLAN


SUMMARIES

Cost Planning and Reporting Standards

CP1 COST PLAN SUMMARY


NPWC /

Job Ref.
Single / Multiple
Cost Plan Building Project

Building Type Code

Project / Building

Job Ref.

Location

Date

BPI

Current
Client

Tender
Locality Index
Physical

Cost / Other Factors


Full Area
2
m

Area
%

Fully Enclosed Cov. Area


Unenclosed Cov. Area
Gross Floor Area (GFA)
Departmental Area Total
Travel & Eng Area Total
Area Efficiency
No. of Storeys *
Building Height *
Floor / Floor Height *
Wall / Floor Area Ratio *
POP Ratio *
FF&E (% of Construction
Cost)

Shape / Description:

Cost
Weight
%

Current
Building Cost

$
2
Cost/m

$
Cost

Current $

Tenders $

FECA
Rate/Cost
UCA
Rate/Cost
Building Rate / Cost
100

Net Construction Cost


Gross Construction Cost
Total Project Cost
End Total Cost
Type of Contract:
Time for Completion
Special Factors:
Facility Scope
Bed numbers
Bed numbers/m2
Level of facility
Locational factors
Proportion of new build/refurbishment
Extent of refurbishment
Allowances for significant abnormals

Drawing References:

* Not included in Multiple Building Project Summary

12518 6.0 rlbrpts 6.9 nswhealthcpguidelines

No.
Internal Car Spaces

GCC/No.

TEC/No

Cost Planning and Reporting Standards

CP4 ELEMENTAL SUMMARY

Job Ref.

PROJECT:
G.F.A. :
Code

m2

BUILDING:

Element

1 SB

Substructure

2 CL
3 UF
4 SC

Columns
Upper Floors
Staircases

5 RF
6 EW

Roof
External Walls

7 WW
8 ED
9 NW

Windows
External Doors
Internal Walls

10 NS
11 ND
12 WF

Internal Screens and Borrowed Lights


Internal Doors
Wall Finishes

13 FF
14 CF

Floor Finishes
Ceiling Finishes

15 FT
16 SE
17 SF

Fitment
Special Equipment
Sanitary Fixtures

18 PD
19 WS
20 GS

Sanitary Plumbing
Water Supply
Gas Service

21 SH
22 VE

Space Heating
Ventilation

23 EC
24 AC
25 FP

Evaporative Cooling
Air-conditioning
Fire Protections

26 LP
27 CM
28 TS

Electric Light and Power


Communications
Transportation Systems

29 SS
00 PR

Special Services
Proportion of Preliminaries

BUILDING COST (BC)


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 Ways

36 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

%
BC

100

46 YY

CONSTRUCTION COST - CURRENT / TENDER DATE

Cost / m2
$

Cost
$

Cost Planning and Reporting Standards

CP5 TRADE SUMMARY

Job Ref.

PROJECT:
G.F.A. :
No

m2

BUILDING:

Trade

General Items

Preliminaries

Demolition

Groundworks
4.1 Excavation
4.2 Filing and hardcore
4.3 Paper and plastic membranes
4.4 Underpinning
4.5 Rock stabilisation

Piling
5.1 Driven piling
5.2 Cast in-situ piling

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

Masonry

Stonework
8.1 Natural stonework
8.2 Artificial stone, terracotta and similar work

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

%
BC

Cost / m2
$

Cost
$

Cost Planning and Reporting Standards

CP6 PLANNING UNIT COST PLAN DETAILS


COST PLAN SUMMARY

Job Ref.
Date of
Estimate :
Base Date of
Estimate for
escalation :

PROJECT:
BUILDING:
OPTION:

PLANNING UNIT

1.00
1.01
1.02
1.03
1.04

Cost
$/m2

m2
m2
m2
m2
m2
m2
-

m2
m2
m2
m2
-

Procedures
Emergency
Medical Imaging
Day Procedures
Intensive Care
Operating Suite
Mortuary/Post Mortem

m2
m2
m2
m2
m2
m2
-

Non Inpatient
Outpatients and Allied Health
Dental
Blood Bank
Pathology
Sexual Assault
Pharmacy
Imaging
Oncology
MRI / PET / Cyclotron ect.
Sub total

6.00
6.01
6.02
6.03
6.04
6.05
6.05
6.07
6.08
6.09
6.10
6.11

Cost
$

Obstetrics
Birthing/Delivery Unit
Maternity
Gynaecology
Neonatal

Sub total
5.00
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08
5.09

H.P.U. Area
m2

Sub Acute
Mental Health
Drug & Alcohol/Detox Unit
Assessment and Rehabilitation
Rehabilitation and Day Hospital
Palliative Care
Abulatory Care

Sub total
4.00
4.01
4.02
4.03
4.04
4.05
4.06

H.P.U. Area
m2

m2
m2
m2
m2

Sub total
3.00
3.01
3.02
3.03
3.04

Measured

General Acute
Medical
Surgical
Paediatrics
Mental Health
Sub total

2.00
2.01
2.02
2.03
2.04
2.05
2.06

Briefed

m2
m2
m2
m2
m2
m2
m2
m2
m2
-

Corporate Services
Linen
CSSD
Engineering Services
Stores
Domestic Services
Security
Biomedical
Food Services
Cafeteria (Staff/Pubic)
IT Services
Medical Records

m2
m2
m2
m2
m2
m2
m2
m2
m2
m2
m2
Sub total

Cost Planning and Reporting Standards


COST PLAN SUMMARY

PLANNING UNIT

7.00
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cost
$

m2
m2
m2
m2

Alterations to existing Structures


(Sub divide alterations)

10.00
10.01
10.02

Travel and Engineering


Inter Unit Space
Plant Rooms and Ducts
(sub divide T&E for alterations)

m2
m2
m2
Sub total

BUILDING COST (BC)

Site Specifics e.g.


External Works
External Services
Stormwater Detention
Temporary Works
Earthquake Provisions
Heritage Provisions

item
item
item
item
item
item

Project Specifics e.g.


Central Energy and Plant
Lifts
PABX etc
Car Park
Courtyard

item
No
item
m2
m2

NET CONSTRUCTION COST (NCC)


13.00

H.P.U.
Area
m2

Community Health
Mental Health
Child Health
Dental
Community Health

9.00

12.00

H.P.U.
Area
m2

m2
m2
m2
m2
m2
m2
m2
m2
m2

Sub total

11.00

Measured

Administration
Child Care
Main Entry/Reception
Admissions and Discharge
Nursing Admin
Conference, Education and Library
Research
Staff Accommodation
Tenants
Area Executive
Sub total

8.00
8.01
8.02
8.03
8.04

Briefed

Allowances, overheads and Margins


Main Contractor's Preliminaries
Main Contractor's Overheads and Profit
Staging Costs
Locality Allowance

GROSS CONSTRUCTION COST (GCC)

item
item
item
item

Cost
$/m2

Cost Planning and Reporting Standards


COST PLAN SUMMARY

PLANNING UNIT

14.00

15.00

16.00

17.00

Briefed

Measured

H.P.U.
Area
m2

H.P.U.
Area
m2

Fees
Consultant Fees
Authority Fees and Charges
Area Health Division Costs

% of GCC
% of GCC
% of GCC

item
item
item

FF&E
Furniture, Equipment, Artworks
(Sub divide FF&E into categories)

% of GCC

item

ICT
Infrastructure and Systems
(Sub divide ICT into categories)

% of GCC

item

Land Acquisition & Property Settlement


Land Purchase
Property Settlements

TOTAL PROJECT COST (BASE COST)

18.00

19.00

Cost
$

item
item

Special Provisions
Escalation
Prolongation and Delay Costs
Contributions
Other
Contingencies
Design Contingency
Planning Contingency
Construction Contingency
Client Contingency
NET END TOTAL COST (NETC) Sub total

HI MANAGEMENT COSTS
END TOTAL COST (ETC)
Notes :
All costs must exclude GST

Cost
$/m2

item
item
item
item

% of GCC
% of GCC
% of GCC
% of GCC
% of Project
End Cost

item
item
Item
item
-

Cost Planning and Reporting Standards

APPENDIX D
PRELIMINARIES PRO FORMA
(INDICATIVE)

Cost Planning and Reporting Standards

APPENDIX E
CONTINGENCIES

Contingency Requirements
1

Nr

HI Contract Stage (Completion)

Cost Stage

Procurement
responsibility

Project Contingency
(% costs)

Client Contingency
(% costs)

Total Contingency
(% costs)

Treasury
Guidance (%)

25%

40%

33 100%

15%

30%

33 100%

10%

25%

18 - 33%

10%

20%

11 - 18%

7.5%

15%

11 18%

5%

12.5%

5 - 11%

2.5%

10%

n/a

0%

2.5%

n/a

CSP

Master Planning

Feasibility - Concept Design (Business


Case)

Schematic Design (PDP)

Design

DD&C

Const

D&C

Planning*

C Only

Design

DD&C

Const

D&C

Planning*

Design

DD&C

Const

D&C

Planning*

Cost Plan P70*


Cost Plan C1
Includes Project Cont
D&C Pre Tender Estimate

C Only

Design

2.5

DD&C

Const

D&C

Planning*

2.5

Updated Cost Plan P80*


Cost Plan C2
Includes Project Cont
DD&C Pre Tender Estimate

C Only

HI

Design

2.5

DD&C

HI

Const

D&C

Con

Planning*

Revised Cost Plan P90*

C Only

HI

Design

2.5

DD&C

Con

Const

D&C

Con

Planning*

C Only

HI

Design

2.5

DD&C

Con

Const

D&C

Con

Planning*

C Only

HI

Design

DD&C

Con

Const

2.5

D&C

Con

Planning*

HI Benchmarking Tool
Includes Project Cont

Health Facility Briefing System


Cost Plan A
Includes Project Cont
Cost Estimate P50*
Cost Plan B
Includes Project Cont

C Only

All HI

C Only

D & C Procurement Point

Design Development

DD & C Procurement Point

Construction Documentation

Cost Plan D
Includes Project Cont Construct Only Pre Tender
Estimate

Construct Only Procurement Point

Start of Construction

Project Commissioning

Contract

Final Account

Contingency Requirements

Accompanying Notes
Column 1 provides a stage number for each design stage during the process
Column 2 Identifies the HI Contract Stage Terminology

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)

Column 3 Identifies the Cost stages aligned 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

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 to recognise the
ownership of risk in a project. No adjustment or allocation of contingency shall occur without HI Director
approval.
Project Contingency

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 actual achieved costs and on Australia wide projects, it therefore
provides a much more extensive basis for budgeting.
Cost Plan A D 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
provides P 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 that there is a 50% chance of the budget
being 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.
Escalation Escalation 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.

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 categories Design, 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 the
appropriateness 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 7 Total Allocated Contingency

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

This column identifies the total normal risk allocation for the project a combination of the project and
client contingencies.

Contingency Requirements

Column 8 - Treasury Guidance on Contingency


Treasury have provided guidance (within the Draft Capital Project Estimating (for construction) version no.1
dated 20th December 2006 Budget 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.

Cost Planning and Reporting Standards

APPENDIX F
PRO-FORMA FOR STANDARD
CASHFLOW

Cost Planning and Reporting Standards

APPENDIX G
PRO-FORMA FOR VARIATION
REGISTER

Cost Planning and Reporting Standards

APPENDIX H
FORMAT FOR FINANCIAL (MONTHLY)
REPORTING

Cost Planning and Reporting Standards

FORMAT FOR FINANCIAL (MONTHLY) REPORTING


Each Cost Plan Report must include the following standard headings (as indicated by
numbered, 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 abstracted
from 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;

Cost Planning and Reporting Standards

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 Appendices
and 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 to
include 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 Proforma for:

Cost Plan information;

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

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

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

Cost Planning and Reporting Standards

APPENDIX I
PRO-FORMA FOR STANDARD
FINANCIAL (MONTHLY) REPORT

Cost Planning and Reporting Standards

COVER PAGE:

FINANCIAL REPORT
NUMBER [Ref]

for

[PROJECT NAME]
[PROJECT LOCATION]

[Date]

Prepared by
[insert logo or name of company]

Prepared for:

Cost Planning and Reporting Standards

INSIDE COVER PAGE:

Header

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]

PROJECT CONSULTANTS
HI Project Director:
[insert name]
Project Manager:
Cost Manager:
Architect:
Structural & Civil Engineer:
MEP Services Engineer:
Landscape Architect:
[Insert others or delete as appropriate]

[insert name and company]


[insert name and company]
[insert name and company]
[insert name and company]
[insert name and company]
[insert name and company]

QUALITY SYSTEM STATUS


Revision No:
Controlled Doc No:

Distribution:

Footer

____ [insert]

Issue Date:

_________[insert]

______[insert]

Checked By:

_________[insert]

_______________________________________________[insert]

Cost Planning and Reporting Standards

PAGE 1:

Header

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.

Footer

Cost Planning and Reporting Standards

PAGE 2:

Header

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 (X no)

$ XX

7. Unapproved variations (X no)

$ 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

Footer

Cost Planning and Reporting Standards

PAGE 3:

Header

2.4 Explanatory Notes


[Insert text]

VARIATION REPORT

[Insert text]

CASHFLOW

[Insert text]

Footer

Cost Planning and Reporting Standards

APPENDICES SECTION COVER PAGE:

Header

APPENDICES

Footer

Cost Planning and Reporting Standards

APPENDIX A COVER PAGE:

Header

APPENDIX A
COST PLAN INFORMATION
[USING PRO-FORMA AS APPLICABLE]

[INSERT DOCUMENTS ON FOLLOWING PAGES]

Footer

Cost Planning and Reporting Standards

APPENDIX B COVER PAGE:

Header

APPENDIX B
VARIATION REGISTER

[INSERT DOCUMENTS ON FOLLOWING PAGES]

Footer

Cost Planning and Reporting Standards

APPENDIX C COVER PAGE:

Header

APPENDIX C
CASH FLOW REPORT
[USING PRO-FORMA AS APPLICABLE]

[INSERT DOCUMENTS ON FOLLOWING PAGES]

Footer

Cost Planning and Reporting Standards

OTHER APPENDIX COVER PAGE:

Header

APPENDIX [letter]
[NAME OF APPENDIX]

[INSERT DOCUMENTS ON FOLLOWING PAGES]

Footer