Page 1 of 2 Right to Information - Public Disclosure Log No.: RTI210516-078 Information Provided Members of the Executive Steering Committee? The Executive Steering Committee provides strategic leadership and oversight to the Project and is the peak decision-making body. The Executive Steering Committee is established under the Royal Hobart Hospital Redevelopment Project Governance, Authorisations and Financial Delegations Instrument and is responsible to the Minister for ensuring that K-Block is delivered within the specified scope, budget and timeframes. The membership of the Executive Steering Committee was approved by Cabinet on 9 December 2014 following a recommendation from the RHH Redevelopment Rescue Taskforce. The membership comprises: Independent Chair: Dr Daniel Norton AO Member with specialist hospital construction expertise: Ms Jo Thorley, Aurora Projects Pty Ltd Representation from THO-South (now the Tasmanian Health Service) as the client to ensure a service delivery focus: Mr Craig Watson, Acting Executive Director of Services from the Tasmanian Health Service Representation from the Department of Health and Human Services as the project and asset owner: Mr Michael Pervan, Secretary of the Department of Health and Human Services Representation from the Department of Treasury and Finance given the financial significance of the project: Mr Tony Ferrall, Secretary of the Department of Treasury and Finance. Remuneration for the work of members on the Royal Hobart Hospital Rescue Executive Steering Committee. Only the Chair and the Independent Member receive remuneration for their work on the Executive Steering Committee. The following figures are remuneration totals invoiced by Dr Daniel Norton AO (Chair) and Ms Jo Thorley (Independent Member) for the period 1 July 2015 to 23 December 2015: Dr Daniel Norton AO $28 000.00 (exclusive of GST) Ms Jo Thorley $14 000.00 (exclusive of GST) How often does the Executive Steering Committee meet? The Executive Steering Committee meets monthly and considers out-of-session matters as and when required.
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Page 1 of 2
Right to Information - Public Disclosure Log
No.: RTI210516-078
Information Provided
Members of the Executive Steering Committee? The Executive Steering Committee provides strategic leadership and oversight to the Project and is the peak decision-making body.
The Executive Steering Committee is established under the Royal Hobart Hospital Redevelopment Project Governance, Authorisations and Financial Delegations Instrument and is responsible to the Minister for ensuring that K-Block is delivered within the specified scope, budget and timeframes.
The membership of the Executive Steering Committee was approved by Cabinet on 9 December 2014 following a recommendation from the RHH Redevelopment Rescue Taskforce.
The membership comprises:
Independent Chair:
Dr Daniel Norton AO
Member with specialist hospital construction expertise:
Ms Jo Thorley, Aurora Projects Pty Ltd
Representation from THO-South (now the Tasmanian Health Service) as the client to ensure a service delivery focus:
Mr Craig Watson, Acting Executive Director of Services from the Tasmanian Health Service
Representation from the Department of Health and Human Services as the project and asset owner:
Mr Michael Pervan, Secretary of the Department of Health and Human Services
Representation from the Department of Treasury and Finance given the financial significance of the project:
Mr Tony Ferrall, Secretary of the Department of Treasury and Finance.
Remuneration for the work of members on the Royal Hobart Hospital Rescue Executive Steering Committee.
Only the Chair and the Independent Member receive remuneration for their work on the Executive Steering Committee.
The following figures are remuneration totals invoiced by Dr Daniel Norton AO (Chair) and Ms Jo Thorley (Independent Member) for the period 1 July 2015 to 23 December 2015:
Dr Daniel Norton AO $28 000.00 (exclusive of GST)
Ms Jo Thorley $14 000.00 (exclusive of GST)
How often does the Executive Steering Committee meet?
The Executive Steering Committee meets monthly and considers out-of-session matters as and when required.
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$20 million contingency and the Guaranteed Construction Sum
Contingency allowances are not part of the Guaranteed Construction Sum.
A contingency is a predetermined amount or percent of the contract held by the project owner (in this case the Tasmanian Government) for unpredictable changes in the project. Contingencies are a risk management tool and are defined as the amount of money (or time) needed above the estimate to reduce the risk of overruns of project objectives to acceptable levels.
Cost contingency is included within a budget estimate so that the budget represents the total financial commitment for the Project. Therefore, the estimation of cost contingency and its ultimate adequacy is of critical importance to projects.
The Tasmanian Government accepted the recommendation of the Executive Steering Committee that an additional $20 million should be set aside as a prudent measure to ensure project risk is properly covered as construction commences.
This recommendation from the Executive Steering Committee was not in response to a specific risk, but in recognition of:
the complexities of the Project
the location of the works in relation to other buildings and services and the need for the hospital to continue to operate throughout the demolition and construction works and
the large scale and discrete nature of the Project (ie the Project is not part of a broader funded program) making the funding of unanticipated costs difficult without sufficient contingency funds.
This decision to allocate an additional $20 million is fiscally responsible and any unused funds will be returned to consolidated revenue at the end of the Project.
The additional $20 million allocation will provide greater certainty that the Project Budget will not be exceeded.
Expenditure by Category for the period 1 July 2015 to 23 December 2015
Construction managed by Managing Contractor 22,139,238.58$ Construction by Others 896,447.71$ Planning Fees and Charges 45,300.40$ Consultant Fees 6,397,350.94$ Furniture, Fittings and Equipment 133,481.77$ Information and Communications Technology 1,622.60$ Relocation Costs 39,689.52$ Rescue Taskforce 8,739.77$ Project Team Costs 923,207.03$ Insurance Costs -$ Additional RHH Operational Costs -$
30,585,078.32$
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Contract Expenditure 1 July 2015 to 23 December 2015
Contract Number Contract Title Contractor/Consultant Name Expenditure 1 July to 23 December 2015
