Construction work

Tender description

Norfolk and Norwich University Hospitals NHS Foundation Trust (‘the Trust’) intends to enter into a deed of variation with Octagon Healthcare Ltd (‘Octagon’) in respect of an existing PFI contract for Norfolk and Norwich University Hospital. The variation will be to provide for additional works to the Norfolk and Norwich University Hospital PFI building. Under the existing PFI arrangement Octagon was required to develop and construct a hospital and following completion of works is required to service the hospital. The variation will include a positive obligation to construct a new Interventional Radiology Unit (‘the Unit’) on the roof of the hospital with an estimated value of 6 000 000 GBP. The PFI contract was entered into on 8.1.1998 for a duration of 60 years at an estimated value of 144 000 000 GBP with Octagon. Octagon were required to design, construct, operate and finance Norfolk and Norwich University Hospital and to provide facilities management services. The proposed variation to the PFI contract is to provide for works to expand the current hospital building to create additional space for interventional radiology equipment. The Unit will be sited on the roof of the existing PFI hospital. The works themselves are being funded by the Trust with capital, and paid as stage payments during construction, and so will not increase the PFI borrowing requirement. The variation requires Octagon to ensure the Unit is built to an agreed timetable (and if it is not LADs will apply). Octagon is responsible for appointing and managing (and if necessary replacing) a construction sub-contractor. There may be permitted extensions of time in accordance with the construction sub-contract. Octagon is responsible for the health and safety of the site and associated duties. A suite of collateral warranties will be provided, for the benefit of the Trust, from the construction sub-contractor and other members of the professional team. The Trust has involvement in determining whether practical completion has occurred and Octagon is responsible for ensuring that any snagging matters are attended to. The construction sub-contractor and Octagon’s liability are capped. The Trust is obliged to provide a cleared site and to work collaboratively with Octagon and the construction sub-contractor so that Trust activities and the building work can be delivered in parallel.