NHS GRAMPIAN

Forres, Woodside Tain(FWT) Bundle Project

Full Business Case Addendum

Aim

The aim of the paper is to present to the Grampian NHS Boardthe Full Business Case (FBC) Addendum for the Forres, Woodside and Tain (FWT) Bundle Project.

This Addendum outlines briefly the changes since the FBC was presented to the Boards of NHS Grampian and NHS Highland on 5 February 2013. In particular, it details the financial changes recorded at Financial Close (FC) and their variance from the figures in the FBC.

The FBC Addendum is submitted to the Board for information prior to submission to the Capital Investment Group (CIG) at the Scottish Government Health Directorate (SGHD) for information.

Strategic Context

NHS Grampian and NHS Highland are committed to improving access to services for the public and therefore need to provide investment in appropriate building infrastructure in the community to help achieve these objectives, with greater levels of need addressed in community settings and an increased emphasis on anticipatory care, self-care, re-enablement and health improvement.

The FBC includes the redevelopment of three health centres in Aberdeen, Forres and Tain. Planning of the proposed health centres has been taken forward in line with relevant national policy, local strategy and NHS guidance.

Discussion

  1. The FBC was approved by the two Boards on 5 February 2013 and by the Scottish Government on 22 March 2013. The approval set an affordability ceiling for the Unitary Charge (UC) for the project of £1.852 million.
  1. The Boards of NHS Grampian and NHS Highland, on 26 February and 5 March 2013 respectively,approved delegated authority to the Chief Executives, the Directors of Finance and their nominated deputies to sign the contract at Financial Close (FC). The certified minutes of these meetings were two of the documents presented at FC.
  1. The delegated authority was conditional on the affordability of the UC within the FBC not being exceeded.
  1. Financial Close was planned for week commencing 25March 2013. This deadline was not achieved as a number of specific contract documents were not completed or signed and the funder, AVIVA, had not concluded their due diligence and outstanding land valuation by James Lang Lasalle on their behalf as a consequence of the decision to move to a leaseback funding model in February 2013.
  1. On 28 March 2013, the participants’ delegated officers signed the Project Agreement and a number of associated documents. During the subsequent 14 working days all of the remaining contract documents were signed by all parties. Financial Close was achieved on 18 April 2013.
  1. The overall UC has reduced at FC by £0.285 million to £1.567 million. This is well within the delegated authority provided by Boardsat FBC for the not to be exceeded limit on the Unitary Charge of £1.852 million. NHS Grampian’s share of this UC is £0.054 million.

Key Risks

A summary of the current project risk position is included at section 13 of the FBC Addendum.

The table below refers to risks in NHS Grampian’s strategic risk register that will be mitigated by the delivery of theForres and Woodside Project.

Risk Number / NHSG Organisational Risks
586 / Deliver effective, efficient, and fit for purpose health and care in partnership with e.g. social care.
610 / There is good communityand staff involvement and support for both projects.
752 / Both projects will create a good working environment for staff.
851 / Both projects are consistent with the strategic aims of Healthfit and the Health and Care Framework.
853 / The new facilities will provide facilities that are safe, e.g. Disability Discrimination Act and Healthcare Associated Infection compliant.
855 / Both projects will address backlog and functional suitability issues locally and also the overall Grampian position.

Conclusion

  1. The FWT Bundle Project has completed the procurement process in compliance with European and Scottish Government guidance, and has closed at a Unitary Charge of £1.567million, £0.285million within the affordability limit agreed at FBC. NHS Grampian’s share of this UC is £0.054 million. The project has successfully completed Key Stage Review 3 and the contract has been signed by all partners and the funders, AVIVA, to achieve Financial Close on 18 April 2013.

Recommendation

The Grampian NHS Board is asked to note the Full Business Case Addendum for the Forres Woodside Tain Bundle Project.

Executive Lead

Mr Alan Gray, Director of Finance

Mr Ross DavidsonMrs Jackie Bremner

Finance Lead Project Director

15 July 2013

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