Our track record providing this service to funders on a wide range of Public Private Partnership (PPP) and Private Finance Initiatives (PFI) schemes, particularly on some of the UK’s largest healthcare projects, was the deciding factor in this latest success. The contract, which was won in competition with other consultants under the NHS competitive bidding procedures, contrasts with other due diligence appointments which are awarded by either bidding consortia or their funders.
Faithful+Gould’s appointment was initially made by the Tees, Esk and Wear Valleys NHS Trust and then novated to the funder - Bank of Scotland.
The development involves providing a new mental health and learning disabilities hospital to replace the existing St Luke’s Hospital, which is situated adjacent to James Cook Hospital in Middlesbrough. Construction is due to be completed in February 2011.
Faithful+Gould’s role will see the team utilise its expertise to ensure that the repayment of the debt is secure, and to review ProjectCo’s proposals to ensure that they meet the Trust’s requirements; also that it can be delivered within the budgets and time allowed.
David Nicholson, Regional Director at Faithful+Gould, said: "This project was one of two early Pathfinder projects for the new NHS procurement model using competitive dialogue and a funding competition. The process is now being adopted by the NHS for new PFI projects and our involvement in this early transaction gives us an advantage in marketing our experience throughout the process. In fact, this has already resulted in a further appointment on a large scheme in the South West of England, which is being procured using this method.
"We will continue to act on this scheme during and after construction of the building, ensuring that the programme is running on time and to budget throughout production and that post construction activities, such as operational maintenance and lifecycle replacement works, are carried out by ProjectCo."