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Contract history

PILING

AT THE time the contract was settled in 2000, the new University College London Hospital near Euston was the largest and most complicated PFI hospital contract ever awarded.

The scheme underwent a long gestation as the trust negotiated the integration of three hospitals onto one site: the Middlesex Hosptial, the Heart Hospital and the Royal London Homeopathic.

BCJV, a joint venture between Amec and Balfour Beatty, along with subsidiaries Amec Building Services and Haden Young, won the initial contract in July 2000 for £225 million.

It was broken down into £186 m illion for phase one (now completed), a fixed lump sum design and build figure to be exceeded only as a result of client variations, and phase two (the current phase), a £39 million project to build the EGA wing, named after Elizabeth Garrett Anderson, the first female physician in Britain (born in 1836).

However, the total cost has grown by £31.5 million to £256.5 million.

BCJV project director Stuart Fraser says £10.5 million of the additional cost was accounted for in client variations on phase one. The remaining £21 million added to the second phase reflects both cost inflation and client variations, he says.

'On the first phase costs were very tightly controlled, including client variations, ' he says. 'A 5.5 per cent increase [for the first phase] on a job of this complexity with all its inherent risks is a definite success ? and is reflective of the positive impact of the PFI procurement approach.' Phase two is due to complete in August 2008.

When complete the EGA wing will house the UCLH Trust's gynaecology, obstetrics and neonatal services together with a dedicated children's A&E and outpatients department.