Report 14: 2017

Non-Clinical Services at Fiona Stanley Hospital

Appendix 4: FM service estimates and actual costs

FM service payments 2015-16

Appendix 4

Notes:

Reasons for the $20 million increase in cost compared to the initial base estimate in 2011 include:

  • items not included or fully priced in the 2011 estimate totalling $24.7 million:
    • subcontractor costs for electronic records management, linen, grounds maintenance and pest control – $8.7 million
    • contract variations – $4.5 million
    • ICT contingency[1] – $3.9 million
    • estate additional works and upgrade works – $3.5 million
    • isolation cleans – $2.1 million
    • human resource management service (workers’ compensation and practitioner adjustment payment) – $1.4 million
    • sterilisation support – $1.1 million
    • vehicle and traffic management, property management and patient entertainment – $0.9 million
    • financial deductions (payment abatements) – $1.4 million
  • items costing more than the 2011 estimate totalling $3.4 million:
    • external transport service – $2.8 million
    • patient catering – $0.6 million
  • items costing less than the 2011 estimate totalling $8.1 million:
    • fixed service payments – $6.1 million
    • waste management and sterilisation – $2 million

Note – Actual costs correlate to the FM monthly invoice which does not necessarily correlate to the activity month due to a time lag in invoicing.

[1] The contract allows ICT contingency payments to resolve issues on the ICT compliance document and/or ICT additional risks for which the FM incurs costs in achieving that resolution.

FM service payments 2016-17

Appendix 4

Notes:

Reasons for the $4.6 million increase in cost compared to the initial base estimate in 2011 include:

  • items not included or fully priced in the 2011 estimate totalling $21.3 million:
    • subcontractor costs for electronic records management, linen, grounds maintenance and pest control – $8.6 million
    • contract variations – $3.9 million
    • estate additional works and upgrade works – $3 million
    • ICT contingency and upgrade work – $1.8 million
    • human resource management service (workers’ compensation and practitioner adjustment payment) – $1.8 million
    • isolation cleans – $1.7 million
    • sterilisation support – $1 million
    • vehicle and traffic management, property management and patient entertainment – $0.9 million
    • financial deductions (payment abatements) – $1.4 million
  • items costing more than the 2011 estimate totalling $3 million:
    • external transport service
  • items costing less than the 2011 estimate totalling 19.7 million:
    • managed equipment, waste management, patient catering and sterilisation – $10.6 million
    • fixed service payments – $9.1 million

Note – Actual costs correlate to the FM monthly invoice which does not necessarily correlate to the activity month due to a time lag in invoicing.

 

 

 

Page last updated: August 16, 2017

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