For discussion FCR(96-97)38
on 5 July 1996

ITEM FOR FINANCE COMMITTEE

CAPITAL WORKS RESERVE FUND
HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
New Subhead "Reprovisioning of Sai Ying Pun Specialist Out - patient Clinic"

Members are invited to approve a commitment of $377.48 million in money-of-the-day prices for the reprovisioning of the Sai Ying Pun Specialist Out-patient Clinic.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
ENVIRONMENTAL IMPLICATIONS
PUBLIC CONSULTATION
BACKGROUND INFORMATION
Details of Consultants' Fees

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PROBLEM

The Sai Ying Pun Specialist Out-patient Clinic (SYPSOC) 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 Queen Mary Hospital (QMH) for the reprovisioning of SYPSOC at a total non-recurrent cost of $377.48 million in money-of-the-day (MOD) prices.

PROJECT SCOPE AND NATURE

Encl. 1

3. The project will involve construction of a new 13-storey specialist out-patient clinic block, linked up with the main hospital complex at QMH. A site plan is at Enclosure 1.

4. The new block with a total gross floor area of 17 373 m² will provide the following facilities -

1. 86 consultation rooms to cater for treatment covering a wide range of clinical specialties including Medicine, Surgery, Obstetrics & Gynaecology, Orthopaedics & Traumatology, Eye as well as Ear, Nose & Throat; and
2. supporting facilities including operating theatres for minor surgeries, out-patient pharmacy, medical records store, radiodiagnostic unit and a car park with 150 spaces.

JUSTIFICATION

5. SYPSOC is located in the Sai Ying Pun Polyclinic which was built in 1959. The SYPSOC with 54 consultation rooms provides out-patient services for QMH. Given increased demand and improved standards over time, it is unable to meet current standards and public needs in terms of space, room layout and design. The existing facilities are outdated and cannot be upgraded due to many structural constraints and physical limits. Due to shortage in space, two to three doctors have to share a consultation room, with consultations and treatment being carried out in congested cubicles, depriving patients of privacy. Moreover, because of the existing location of SYPSOC, doctors have to make frequent trips to and from QMH, thus hampering operational efficiency.

6. The lack of scope for expansion of SYPSOC has resulted in long queuing time and congested physical environment. The waiting list of patients seeking first consultation has increased from 2 588 in March 1995 to 4 175 in March 1996. The proposed project will relieve the space congestion and provide scope for expansion by providing 86 consultation rooms and additional treatment facilities. This will reduce the waiting time for treatment and improve the privacy of patients. Furthermore, location of the new block within the boundaries of QMH will cut down significantly the travelling time for doctors and minimise the inconvenience for patients requiring diagnostic or rehabilitation care provided in the main hospital complex.

7. Shortage of parking spaces at QMH has long been a subject of complaint by patients and their visitors. Only 270 parking spaces are available in the hospital compared with a total requirement of 420 according to the current planning standard. The project will make up this shortfall by providing 150 additional parking spaces.

FINANCIAL IMPLICATIONS

8. The Director of Architectural Services (D Arch S) estimates the total project cost to be $377.48 million in MOD prices, made up as follows -

Encl. 2

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

9. The estimated cashflow is as follows -

10. 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. The project will be tendered under two separate fixed-price lump-sum contracts for site formation and building works respectively as D Arch S can define clearly the scope of the works in advance, leaving little room for uncertainty.

11. The Hospital Authority (HA) estimates the additional annual expenditure of the project to be $7.47 million at December 1995 prices, made up as follows -

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

ENVIRONMENTAL IMPLICATIONS

13. The Director of Environmental Protection (DEP) has completed an Environmental Review of the project and concluded that an Environmental Impact Assessment is not necessary. Central air-conditioning will be provided in the new building to improve its internal noise environment and no pathological incinerator will be installed. HA will follow the guidelines issued by DEP on the disposal of clinical, chemical and liquid waste, and that issued by the Director of Health on the disposal of radioactive waste. D Arch S will impose strict requirements for the contractors to make mitigating measures to control dust, noise and site run-off during the construction period.

PUBLIC CONSULTATION

14. Both the Central & Western and Southern District Boards are in support of the project.

BACKGROUND INFORMATION

15. The Sai Ying Pun Polyclinic is jointly occupied by the SYPSOC and various clinical facilities of the Department of Health (DH). With the relocation of the SYPSOC to the new block in QMH, we will consider the feasibility of using the vacated premises for improving the existing facilities of DH and setting up an ambulatory/community care centre for chronic patients.

Health and Welfare Branch

June 1996

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Enclosure 1 to FCR(96-97)38

A site plan is not attached

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Enclosure 2 to FCR(96-97)38

Details of Consultants' Fees

Breakdown of estimates for consultants' fees

Category of works/items			Estimated man months	Average MPS salary point	Multiplier factor	Estimated fees ($million)
(I)	Quantity Surveying
(a)	Tender documents	Professional Technical	7.5 31.0	40 16	3.0 3.0	1.16 1.61
(b)	Tender assessment	Professional Technical	0.5 2.0	40 16	3.0 3.0	0.08 0.10
(c)	Contract administration	Professional Technical	8.0 33.0	40 16	3.0 3.0	1.23 1.71
Sub-total						5.89
(II)	Structural Engineering
(a)	Outline proposal & sketch plans	Professional Technical	4.0 3.0	40 16	3.0 3.0	0.62 0.16
(b)	Detailed structural & geotechnical design	Professional Technical	7.0 8.5	40 16	3.0 3.0	1.08 0.44
(c)	Tender documents	Professional Technical	3.5 18.0	40 16	3.0 3.0	0.54 0.93
(d)	Tender assessment	Professional Technical	1.0 1.5	40 16	3.0 3.0	0.15 0.08
(e)	Resident site supervision staff	Professional Technical	4.5 12.5	40 16	2.1 2.1	0.49 0.45
Sub-total						4.94
(III)	Out-of-pocket Expenses
(a)	Detailed site investigation					0.10
(b)	Printing cost					0.07
Sub-total						0.17
Total						11.0

Notes

1. A multiplier of 3 is applied to the average MPS point to arrive at the full costs including the consultant's overheads and profit, as the staff will be employed in the consultant's office. (At 1.4.95, MPS point 40 and 16 are equivalent to $51,440 and $17,270 per month respectively.)

2. The figures given above are based on estimates prepared by D Arch S. We will only know the actual man-months and fees after selecting the consultant through the usual competitive lump-sum fee bid system.

3. The estimated consultant's fees represent 4% of the total project estimate, and cover service for quantity surveying discipline and structural engineering discipline.

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