DunedinHospital Redevelopment:Stage 1

March 2017 ProgressReport

1)Objective

TheobjectiveinStage 1isto preparea long andshort listofoptionsaspart oftheIndicativeBusinessCase and arecommendedpreferred way forwardtotakeinto theDetailedBusinessCase.Thisreport should bereadinconjunctionwith theconsultantprogressreports.

2)Progress

Withinscope? / Yes
Ontime? / Atrisk
Onbudget? / Yes
Anysignificantrisks? / Yes.

a)Activitysincelastreport

Proj-XSolutionsLtdhave been engagedtoreviewthe technicalreportsproducedto dateincludingtheBECAbuildingassessment reports. Theyareworkingwiththearchitects(Jacobs) andQuantitySurveyors(RLB) toreviewinitial draftestimatesof the areabenchmarksrequiredforeachshortlist optionandtheir costs.

Ministry,Sapereand SDHBrepresentativesmeton 15 March2017inWellingtonto workthrougha list ofassumptionsunderpinning thefinancial model thatneededfurtherclarification.

A draft roadmapfor completing theIBCphase hasbeenprepared.AmoredetailedGanntfor completing theIBCphasehasbeenpreparedinconjunctionwith theSouthernDHBPMO.

b)Scopechangessincelastreport

Theplannedtasksandtimelinefor completingIBCrelatedactivityinAprilandMayhavebeenreviewed.Asa resultsomeoftheactivity inApril andMay hasbeenupdated.TheGanntfortheIBCwillreviewedandupdatedregularly.

c)Upcomingactivity(at timereport isbeingprepared)

MoH,SDHBandSapere willworkthroughaseriesoffollow-upsfollowingadiscussionon 15thMarchon theassumptionsforthefinancial modelstillneeding tobeworkedthrough.

Updatedbenchmarkareasandcostsforeach shortlistoptionaretobeproducedby endofMarch.

By24March2017reviewingthe shortlistofoptionswithconsiderationofthespacerequiredforeachsiteoption,legalconsiderations,costestimatesandaninitialhighlevelconstructionprogramme foreachoption.AprojectplanfortheDetailedBusinessCasewillbepreparedbasedonthenatureandnumberofoptionsexpectingtoproceedintothatphaseofwork.

SouthernDHBtorunthefinancialmodelfortheshortlistofoptionsafterthenextSPGmeeting(referalsoSapereand SDHBreports).

3)Budget1

ThefiguresbelowareuptotheendofFebruary2017againsttheapprovedtwoyearbudget.Theoverallprojectremainswellunderbudget.

1TravelandaccommodationrelatestoMoHstafftravel.CostsforSPGandconsultantsareincorporatedintheirrespectivelineitems.

4)Risks

Thetoprisksintheriskregisterarelistedbelow.Highrisksarethosethathavebeenidentifiedwiththepotentialtodelayprogressoftheprojectand/orimpactontheability toachievethedeliverables.

5)Milestones

# / MilestonesStage1 / TargetDate / Actual/Comment
B / IndicativeBusinesscase
RFP-IBC
1. / RFPsforBusinessCaseWriterandHospitalPlannerpostedonGETSandAconex / 3June2016 / Complete
2. / EvaluationPanelsconvened / 11-15July2016 / Complete
3. / Approvaltonegotiatewithpreferredrespondents(SPGandMOH) / 26July2016 / Complete
4. / Contractscommence / 8August2016 / Complete
IndicativeBusinessCasePlanningPhase
5. / CompletedevelopmentofafinancialmodelframeworkforSouthernDHB / 29Sept2016 / Complete
6. / DraftDetailedServicesPlan:PartB(Deliverable4-Sapere)producedforconsultation / 27Oct2016 / Complete
7. / FinalDetailedServicesPlan:PartB(Deliverable4-Sapere)toSPG / 29Nov2016 / Approved–finaleditundertaken
8. / Longlistofoptions / 20Dec2016 / Complete
9. / MarketsoundingforPPP(ifrequired) / 13April2017 / Teleconferenceheldtoconfirmarrangements–datechangedfrom11thto13th
10. / SPGpresentationonprogresswithdraftIBC / 2May2017
11. / OfficialsclinictoreviewdraftIBC / 15or16May2016 / New
12. / Gateway1Review / TBC–29May
13. / DraftIBC–SPGtoreceivesummaryoffeedbackwithdraftIBC / 30May2017
14. / ConsultationwithSDHBandMoHstakeholders / 22-25May2017
15. / FinalIBCtoMoH / 6June2017
16. / SPGteleconference / New / TBC–weekof12June
17. / SPGapprovalofIBC / 27June2017 / SPGapprovalrequired
18. / CICReview / 19July2017