For discussion FCR(96-97)55
on 19 July 1996

ITEM FOR FINANCE COMMITTEE

CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Medical Subventions
New Subhead "Reprovisioning of South Kwai Chung Specialist Out-patient Clinic"

Members are invited to approve a commitment of $452.17 million in money-of-the-day prices for the reprovisioning of South Kwai Chung Specialist Out-patient Clinic.



PROBLEM

The South Kwai Chung Specialist Out-patient Clinic (SKCSOC) has inadequate space and treatment facilities to meet present day requirements.

PROPOSAL

2. The Secretary for Health and Welfare proposes to construct a new block in Princess Margaret Hospital (PMH) to reprovision SKCSOC at a non-recurrent cost of $452.17 million in money-of-the-day (MOD) prices.

Project scope and nature

3. The project will involve the demolition of an existing four-storey staff quarters building to make way for the construction of a new ten-storey specialist out-patient clinic block within PMH. A site plan is at Enclosure 1.

4. The new block with a total gross floor area of 21 684m2 will provide the following facilities -

  1. 64 consultation rooms providing out-patient service for a wide range of clinical specialities including Medicine, Surgery, Paediatrics, Obstetrics & Gynaecology, and Orthopaedics & Traumatology;
  2. eight consultation rooms providing psychiatric out-patient as well as day-patient services; and
  3. supporting facilities including operating theatres for minor surgeries, out-patient pharmacy, rehabilitation facilities, radiodiagnostic unit, medical record store, offices for medical social workers and other administrative staff.

JUSTIFICATION

5. SKCSOC with 31 consultation rooms is located in the South Kwai Chung Polyclinic built in 1970. It provides out-patient services for PMH and Kwai Chung Hospital (which is close to PMH). Given increased demand and improved standards over time, SKCSOC is unable to meet current standards and public needs in terms of space, room layout and design. Due to space shortage, two to three doctors have to share a consultation room to carry out consultations and treatment, thus depriving patients of comfort and privacy. For the psychiatric service, children and adolescents are currently receiving treatment in the same area with adults. Moreover, because of the SKCSOC's remote location in Kwai Shing Wai, doctors have to make frequent trips between the two hospitals and the clinic. This adversely affects operational efficiency.

6. The lack of expansion scope for SKCSOC has resulted in long queuing time and congested physical environment. The waiting list of patients seeking first consultation has increased from 1 819 in March 1995 to 2 570 in March 1996. The proposed project will relieve space congestion and provide 72 consultation rooms and additional treatment facilities. This will reduce the waiting time for treatment and improve the privacy and comfort of patients. Furthermore, location of the new block within the boundaries of PMH will cut down significantly the travelling time for doctors.

FINANCIAL IMPLICATIONS

7. The Director of Architectural Services (D Arch S) estimates the total project cost to be $452.17 million in MOD prices, made up as follows -


$million
(a) Site formation and demolition of quarters3.90
(b) Building125.18
(c) Building services113.28
(d) Drainage and external work28.00
(e) Furniture and equipment28.70
(f) Consultant's fees 7.20
(g) Contingencies31.83
Sub-total338.09
(at December 1995 prices)
(h) Inflation allowance114.08
Total452.17
(in MOD prices)

A breakdown of estimates for consultant's fees is at Enclosure 2.

8. The estimated cashflow is as follows -

Year$million
(December 1995)
Price
Adjustment
Factor
$million
(MOD)
1996-970.201.075000.22
1997-9870.001.18250
1998-99130.001.30075169.10
1999-2000114.001.43083163.11
2000-200123.891.5470836.96
Total338.09
452.17

9. D Arch S derives the MOD estimate on the basis of the Government's forecasts of trend labour and construction prices over the period between 1996 and 2001. D Arch S will tender the project under two separate fixed price lump-sum contracts for site formation and building works respectively as he can define clearly the scope of the works in advance, leaving little room for uncertainty.

10. The Hospital Authority (HA) estimates that the additional annually expenditure of the project will be $10.17 million at 1996-97 price level, made up as follows -

$ million

Personal emoluments

6.78

Other charges

3.39

Total

10.17

11. This project does not require land acquisition and clearance. Subject to Members' approval, D Arch S plans to start work in August 1997 for completion in August 1999.

ENVIRONMENTAL IMPLICATIONS

12. The Director of Environmental Protection conducted an Environmental Review (ER) in April 1994 and concluded that the operation of the project would have limited potential for adverse impacts on the environment. Therefore, an Environmental Impact Assessment is not necessary. D Arch S will conduct a survey to assess the likely disturbance of asbestos-containing materials (ACM) due to demolition works and will remove and dispose of any ACM prior to the commencement of any demolition works in strict compliance with the relevant codes of practice and guidelines. D Arch S will also equip the new building with air-conditioning, which will improve the internal noise environment within the building. HA will arrange for the management, storage, transport and disposal of chemical and clinical wastes as recommended in the ER.

13. For short term construction impact, D Arch S will include in the construction contracts requirements for the contractors to control dust, noise, and site run-off nuisance during construction through the implementation of mitigation measures.

Public consultation

14. The Kwai Tsing District Board supports the project.

BACKGROUND INFORMATION

15. The SKCSOC occupies the South Kwai Chung Polyclinic with various clinical facilities of the Department of Health. With the relocation of the SKCSOC to the new block in PMH, we will consider the feasibility of converting the vacated premises into an ambulatory rehabilitation and community care centre providing patients with group therapy activities, counselling, and rehabilitation services.

Health and Welfare Branch
July 1996


Enclosure 1 to FCR(96-97)55

A site plan of reprovisioning of South Kwai Specialist Out-patient Clinic is not attached


Enclosure 2 to FCR(96-97)55

Details of Consultant's Fees

Breakdown of estimates for consultant's fees

Category of
works/items

Estimated man months

Average
MPS
salary
point

Multiplier
factor

Estimated
fees
($ million)

(a) Tender Documentation

Professional

Technical

16.0

16.0

40

16

3.0

3.0

2.47

0.83

(b) Tender Assessment

Professional

Technical

1.50

1.40

40

16

3.0

3.0

0.23

0.07

(c) Contract Administration

Professional

Technical

17.5

17.4

40

16

3.0

3.0

2.70

0.90

Total

7.20

Notes

1. Since the consultants will employ the staff directly, we have applied a multiplier of 3 to the average Master Pay Scale (MPS) point to arrive at the full costs including overheads and profit (as at April 1995, MPS point 40 = $51,440 per month and MPS point 16 = $17,270 per month).

2. We base the figures given above on Director of Architectural Services' estimates. We can only ascertain the actual man-months and fees after we have selected the consultants through the usual competitive lump-sum bidding system.

3. The estimated consultants' fees represent 2.1% of the total project estimate and is inclusive of quantity surveying services.


Last Updated on 2 December 1998