Capital Affordability. The estimated overall capital costs of the project are . A summary of the capital costs is shown in the table below, with detailed indicative costs presented at Appendix 2. Costs Elements Option 2 £000 Construction Costs Fees Estates and Facilities Equipment and IT Inflation Allowance Risk Allowance VAT
Capital Affordability. In its 2018/19 budget, Scottish Government stated its commitment to progressing investment in development of Elective Care Centres nationally. NHS Tayside estimates that it will require £ (REMOVED – COMMERCIALLY SENSITIVE) of this funding for the construction of the Elective Care Centre (excluding AHSP training facility) over financial years.
Capital Affordability. The estimated capital cost associated with the preferred option is detailed in the table below. Construction costs were provided by independent quantity surveyors. Costs for all shortlisted options can be found within the Initial Agreement. The table also tracks changes to the costs from those included in the IA and details the reasons for these changes. Construction 4,362 6,620 (2,258) Professional Fees 420 521 (101) Land Purchase 225 - 225 Furniture, Fitting & Equipment 101 101 - IT & Telephone Costs 119 119 - Optimism Bias 1,018 2,208 (1,190) VAT 760 1,914 (1,154) The assumptions made in the calculation of the capital costs are: • The total floor area has increased by 170m2 since the approval of the IA. This is a result of the Stage 1 design development and an increase in the required clinical accommodation within the Clinical Brief. • The Stage 1 design and construction costs now include substantial additional requirements to work towards achieving a Net Zero Carbon facility. This was not included within the IA proposal. • The construction cost includes elements to deal with site abnormals which have been detailed through the Stage 1 site surveys. • The construction costs are an indicative value, and assume no accelerated working. Service Change Planning Strategic Assessment Initial Agreement Outline Business Case Final BusinessCase Implementation Phase • Construction costs include an inflation allowance in line with the planned programme. • VAT at 20% has been applied to relevant costs; VAT recovery has been assumed where appropriate. A final assessment of VAT recovery will be given by VAT advisors on completion of the project. • Costs include an optimism bias of 30%. This reflects a bias of 17% calculated utilising the SCIM Optimism bias baseline and mitigation calculation tool and additional bias of 13% reflecting the uncertainty in the market and construction pricing since the cost estimate was developed. This increase in optimism bias has also been applied across the other options in the Economic Case.
Capital Affordability. The estimated overall capital costs of the project are . A summary of the capital costs is shown in the table below, with detailed indicative costs presented at Appendix 2. The key capital assumptions are: • The construction costs are an indicative value, and assume no accelerated working. • Construction costs do assume the project would involve a significant level of refurbishment & modernisation throughout. • Construction costs include an inflation allowance, separately identified above; • VAT at 20% has been applied to relevant costs; • VAT recovery has been assumed where appropriate. A final assessment of VAT recovery will be given by VAT advisors on completion of the project; and • Costs include a risk allowance/ optimism bias of 12%. Costs Elements Option 2 £000 Construction Costs Fees Estates and Facilities Equipment and IT Inflation Allowance Risk Allowance VAT
