Achieving the Client’s Objectives in PFI Projects John Cole Chief Executive , Health Estates

1. Achieving the Client’s Objectivesin PFI ProjectsJohn Cole Chief Executive , Health Estates

2. EVIDENCE-BASED DESIGN • No longer simply intuitive – now research backed • The Health Sector • Up to 20% reduction in post operative recovery / length of stay • Up to 15% reduced use of analgesics • Reduced hospital acquired infections, medical errors and patient accidents leading to claims • Reduced aggression towards staff by up to 40% • Easier recruitment and retention of staff – up to 56% increase in levels of staff morale • Lower pulse rates and blood pressure readings leading to better outcomes • Improved staff efficiencies – up to 20% more effective use of nursing resources

3. ACHIEVING DESIGN QUALITY • Most fundamental requirement an informed client, who at the highest level is committed to design quality and understands its contribution to service delivery and better patient outcomes • A comprehensive client brief that clearly articulates specific design quality objectives as key targets in the project delivery • Best practice design quality control tools / mechanisms • The ability to set design standards and evaluate design solutions prior to and after construction

4. ACHIEVING DESIGN QUALITY IMPACT FUNCTIONALITY · Character and · Uses Innovation · Access Added · Citizen Satisfaction · Spaces value Internal · Environment Urban & Social · Excellence Integration Added Added value value BUILD STANDARD · Performance · Engineering AEDET · Construction

5. DESIGN EVALUATION PROFILE BUILD STANDARD FUNCTIONALITY USES 6 Excellent CONSTRUCTION 5 ACCESS 4 3 ENGINEERING SPACES 2 1 Poor PERFORMANCE CHARACTER AND INNOVATION URBAN & SOCIAL INTEGRATION CITIZEN SATISFACTION INTERNAL ENVIRONMENT (PATIENTS & STAFF) IMPACT

6. HEALTH BUILDINGS Would you prefer to go to a ward in a corridor like this? Hospital ‘A’ Ward corridor

7. HEALTH BUILDINGS Or this? Ward Corridor, Intermediate Care Centre, London

8. HEALTH BUILDINGS

9. HEALTH BUILDINGS North Croydon Medical Centre AHMM Architects Norfolk and Norwich University Hospital Anshen Dyer Architects

10. HEALTH BUILDINGS ACAD Centre, Central Middlesex Hospital Avanti Architects

11. EDUCATION BUILDINGS Into a lobby like this….. School A - school street

12. EDUCATION BUILDINGS Or this…..? School D - entrance hall and school street

13. DESIGN QUALITY • Has to meet the needs of 6 constituencies: • Patients • Staff • Hospital Management • Facilities management • The wider health system • The general public • All successful buildings must satisfy these various needs

14. Designing for People A Patient Focus • human scale and a non-intimidating friendly environment that gives confidence • accessibility, easily understood, good way-finding • personal respect and privacy • cleanliness • proper space standards/ uncluttered/ uncrowded • enabling visitors • control over their personal environment • choice • telephone / television / sound insulation • outlook / landscaping / natural light / art / colour / texture • well–chosen furniture and artificial lighting • an environment that promotes healing

15. Designing for People A Staff Focus: • patient flows through building • correct adjacencies • supervision / observation / support / security • storage space • capacity • proper space standards / functionality / / flexibility • appropriate technology • facilities for administration / training / relaxation / changing / eating / overnight accommodation / exercise • outlook / landscaping / natural light • ambience / quality of building/ pride and ownership in their organisation

16. Designing for People The Public Experience: • accessibility / car-parking and way-finding • friendly / inviting / non-institutional • clearly identifiable entrances / reception points • long waits / range of seating / waiting areas/ space for private interviews • facilitating families with children • diversion / amenity / shopping / visitors / overnight stays • art / landscaping / outlook • public realm / buildings for people • community pride / enhancing the local environment • contributing to social / economic / environmental sustainability

17. Designing for People The Management Experience: • facilitating the required service model • development control plan • site circulation / car-parking complaints • good way finding / short travel distances • efficiency of layout • flexibility / adaptability / extendibility over life • Future - proofed for technology • design for maintenance / long life / low energy/ whole life costs • security / supervision / management of entrances • attracting and retaining staff • public perception / first impressions / cleanliness • cost reductions / income generation opportunities

18. The Service Delivery Client’s Role • Strategic Vision for the Service in Total • Integrated Trust Service Vision across primary / community / acute sectors • Quantification of service need / Location of facilities • Site identification, planning permission and acquisition • Whole building and departmental operational policies • Functional content of buildings / Schedules of accommodation • Equipment requirements • Space standards / key functional relationships/ room data sheets • Environmental and engineering services requirements • Design quality objectives • Flexibility / extendability • Sustainability standards • Articulation of concept design solution and ratification or refinement of brief • Appropriate budget

19. Local Hosp. 4 Local Hosp. Acute Hospital 150-300 Thousand Acute Hospital CTCC. 3 Local Hosp. Non-health agencies Regional Hospital 1.7 Million 100 Thousand+ 2 CTCC. CTCC HC Acute Hospital 1 20 – 70 Thousand Individual homes HC 2-10 Thousand Other Community Facilities. An Integrated Services Model

20. Key Trends in Location of Services 1 - Local Health Centres 2 - Community Health Centres 3 - Local Hospitals 4 - Acute Hospitals 5 - Regional Centres Movement of out-patients diagnostics and treatments from acute towards community Key issue is the movement of chronic disease management to the community preventing unnecessary hospitalisation Movement of complex specialties or specialties benefiting from higher critical mass to Centres of Excellence

21. 180 km Level 4 - Acute Hospitals

22. 180 km Level 3 - Local Hospitals BANGOR NEWTOWNARDS

23. 180 km Level 2 – Community Treatment and Care Centres

24. BENEFITS OF PPP/PFI • Potentially earlier availability of funding • Potential for innovation • Potential benefits from related commercial development opportunities • Consortium input to buildability / life-cycle management • Guaranteed maintenance over contract period • Replacement of equipment (if included) • Payment related to availability of facility

25. PERCEIVED PROCESS PROBLEMS WITH PPP/PFI • Poor Public Sector Comparators produced • Lack of clarity/understanding of strategic and specific needs of client • Bidding costs to client and contractor • Wasted resources • Length of time taken to closure • Affordability gap due to lack of adequate work by client prior to bidding process • Inadequate definition of quality issues prior to formalisation of contract • Potentially opposing objectives • Occasionally the quality of the final product

26. PFI IMPACT OF DESIGN ON LIFE-COSTS Cost in Use to Client : 50 - 200 Cost of Maintenance : 5 Cost of Building : 1 Cost of Design : 0.1

27. MANAGING DESIGN DEVELOPMENT • A 10% increased efficiency in capital and life-cycle maintenance equates to only 0.6 of the original capital cost • A 10% increased efficiency in costs-in use equates to up to 20 times the original capital cost • The current payment mechanisms do not incentivise PFI consortia to focus on the user-client’s costs-in-use • The user-client must ensure the design facilitates its core needs and activities • All procurement models must enable the user client to properly establish the brief and control design quality of the final building

28. OWNERSHIP OF THE CONCEPTUAL DESIGN • Only providers of complex services such as health services can fully understand implications of key issues for their populations such as: • strategic development needs • developing models of care • technological advancement / research requirements • changing medical and nursing practice • patients’ expectations • In-depth dialogue between the user-client and the design team is essential for successful high-quality design • This is most important during the conceptual design stages

29. RELATIONSHIP ISSUES • Consortium’s Design team are not able to properly research specific needs of client • Limited opportunity for in- depth dialogue / brief development with user-client during key design conceptualisation stage until after competitive stage of design process is completed • Inadequate time for initial design development and often inadequate allocation of fees to properly resource this stage of the project • Potential for mis-interpretation of ‘output’ specification • Design quality aspirations sometimes not shared • Incomplete definition of product • Compromises during construction

30. THE EXEMPLAR MODEL • Fundamentally using this model the real client is much more specific about: • The strategic and detailed needs of the client • The quality aspirations of the client • The type of design that would satisfy these needs and aspiration • The cost of such a facility • Through appointing a creative design team on quality-based criteria to test the brief fully and produce an exemplar design fully reflective of the client’s requirements and which the client would be happy to accept as such

31. OBJECTIVES OF EXEMPLAR MODEL • User Client has properly agreed and signed off strategic medium to longer-term vision and current operational need • Proper research/visits carried out with exemplar design team • Full consultation and sign-off with key user-groups during brief development in iterative design process • Clear identification of required quality objectives and performance specification • Consultation with town-planners on specific site requirements • Testing of site infrastructure requirements • Establishment of a design solution fully acceptable to users and signed off as such • Pricing of site specific design solution and signed-off affordability test prior to market engagement • Reduced cost and time for bidding process, fewer barriers to entry

32. Managing Uncertainty through Exemplar Process • Clarity for bidders on • service model, • capacity requirements, • space requirements, • functional relationships, • quality requirements, • affordability • user buy-in • site and planning issues

33. THE EXEMPLAR MODEL • Used successfully on the Belfast Cancer Centre and Altnagelvin Laboratory and Pharmacy • Last week PAC report on the failed Paddington Hospital PFI asked why they hadn’t adopted the Northern Ireland Exemplar Model • Currently being employed on: Enniskillen Hospital Omagh Hospital Ulster Hospital Royal Mothers’ and Children’s Hospital • Being used for Primary Care and Community Infrastructure for a potential PPP model for a significant element of £600M+ programme • Dept of Health in England has recently introduced requirement to follow this approach in its PFI Design Protocol and Treasury currently reviewing its guidance

50. THE BENEFITS OF THE EXEMPLAR MODEL • Client gets much better understanding of issues through involvement in design development process and is much better placed to assess bidders’ proposals • The Public Sector Comparator is much more realistic in terms of actual costs and affordability as it is based on a well developed design reflecting the required quality, space standards, layouts and specific site–related issues • Bidders get much better understanding of client’s strategic and specific needs and quality aspirations • Bidders’ costs are reduced • Client retains control of conceptual design, content and design quality • Design proposals are much more informed and customer focussed • Reduces wasteful processes • Speeds up process from OBC to on-site