§ Mr. Gordon Wilsonasked the Secretary of State for Scotland if he will hold the inquiry into the building costs of Ninewells hospital, consideration of which was postponed to allow litigation.
§ Mr. Fairgrieve[pursuant to his reply, 22 November 1979, c. 345]: I can now report that all outstanding matters have been resolved without recourse to the courts. The final cost of the hospital, including fees and equipment, is £25.7 million, of which 23½ per cent. has been met by the University of Dundee in respect of the medical school. Details are given below.
Ninewells hospital has now been in operation for over six years. It has acquired a good reputation and is, I believe, giving the public good value for money. I see no reason for holding a further inquiry into its building.
The following are the details:—
£m Original tender cost 10.2 Authorised additions (1) 1.4 Fluctuations (2) 3.9 Arbitration award for period to 31.7.70 (3) 2.3 Settlement for period after 31.7.70 (4) 1.9 Final certificate 19.7 Out of court settlement May 1979 (5) 0.7 Fees (6) 2.5 Equipment 2.8 Total cost (3) 25.7 Notes:
- (1) Authorised additions not included in the original tender cost, such as the radiotherapy department.
- (2) Increases allowable in terms of a variable price contract in respect of pay awards and price rises in materials.
- (3) The arbiter's award concerning losses on the contract up to July 1970 was as follows:—
684W
£ Nominated sub-contractors 325,400 Approved sub-contractors 115,500 Main contractor's own trades 385,000 Preliminary and general items 1,470,000 Other 17,597 2,313,497 (4) This settlement covered the period from 1 August 1970 to completion of the hospital.
(5) Settlement was for £673,000 (as against £2.8m claimed) paid to the main contractor in respect of full and final settlement of all present and future claims.
(6) Payments to the architects, structural engineers, services engineers and quantity surveyors.