Appendix B: Illustrative example of a
Risk Description Table
|Category||Construction and Development
|Risk||Incorrect Cost Estimate
|Definition||The cost to complete the construction phase may be different from that estimated in the tender.
|Impact On||Construction timetable and cost
|Commentary||PSC: Construction costs in the FBC are based on a standard variation of price government contract. It could change as the design and the programme are developed, or if problems arise.
PFI: The construction cost is a fixed price turnkey price. The risk of changes in cost, during the construction phase, is transferred in full to the private sector.
|Risk Retained by Trust||PSC: 100 per cent|
PFI: 0 per cent
|Estimated Cost of Risk||PSC: £1,323,000|
|Overall Probability||25 per cent
|Timing||Risk is apparent throughout the construction period - Years 1 and 2
|Evidence for assumptions||PSC: Experience shows that contract prices are not the final price paid by the trust. The original estimate may be higher or lower than the final contract sum.|
SourceTrust's technical adviser and workshop discussions, NHS Estates Database.
Appendix A: Table of information (question 3a)
Appendix B: Table of information (question 3c)
Appendix C: table of information (question 3e)