Birmingham New Hospitals Project

The Birmingham New Hospitals project, which includes the first new hospital to be built in Birmingham for over 70 years, has been jointly commissioned by the University Hospital Birmingham NHS Foundation Trust (UHBFT) and Birmingham & Solihull Mental Health NHS Foundation Trust (BSMHFT). The £600m project is being delivered predominantly under HM Government’s Private Finance Initiative (PFI). The scheme comprises the construction of 170,000m2 of new build accommodation and the refurbishment of 28,000m2 of retained estate. Once complete this will provide facilities for UHBFT, BSMHFT, the Ministry of Defence, and the University of Birmingham Medical School. At one-and-a-half times larger than the new Birmingham Bull Ring Shopping Centre, it is one of the largest projects to be undertaken in Birmingham.

In 2006, Faithful+Gould was appointed under a seven year commission to act as Trust Technical Cost Advisor, providing post-contract cost control through to completion of both acute and mental health facilities.

To date the role has seen Faithful+Gould provide capital, lifecycle, risk and value, and facilities management cost advice relative to:

  • Negotiation of variations to the contract, including pre-determined potential variations resulting from a HM Treasury affordability review;
  • Option appraisals and estimation of costs arising with respect to the refurbishment of retained estate. These works are being funded from the public purse and must be undertaken by the Trust in order to bring the condition of selected existing buildings and engineering facilities to a predefined ‘satisfactory’ condition before handover to the Project Company;
  • Business case development for those elements of the wider estate strategy that are being funded outside of the PFI from the public purse.

The challenges were: To ensure that healthcare services delivered from existing facilities remain fully accessible to patients and staff throughout the course of the construction period, minimising disruption and health and safety concerns whilst developing on a live hospital site. Furthermore, to ensure that affordability and whole-life value-for-money are returned from significant post-contract variation proposals and from business case/investment proposals.

Once complete, Birmingham will have an internationally recognised centre of excellence providing modern and dependable acute adult healthcare and integrated mental health services. It will become a focus for world class health education, training and research. Replacing Selly Oak Hospital and the Queen Elizabeth Hospital, the PFI concession for the new hospital will operate for 35 years commencing from completion of the 5 year construction programme.

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