New scanning and oncology unit, Royal Cornwall Hospital, UK

Royal Cornwall Hospitals NHS Trust has used NEC to procure a new state-of-the-art scanning and oncology building at its main hospital in Truro, UK. Opened in June 2023, the new 3000 m², three-storey unit provides MRI, ultrasound and X-ray services at lower ground and ground level, a 24-bed oncology ward on the first floor and a second-floor plant room.

The £26 million design-and-build project was let through the NEC-based, £4.9 billion ProCure22 framework to Principal Supply Chain Partner BAM Construct UK under an NEC3 Engineering and Construction Contract (ECC) Option C (target contract with activity schedule). Construction started in March 2021 and, despite the challenges of working through the Covid-19 pandemic, the reinforced-concrete-framed, metal-and-brick-clad building was successfully completed on time and budget in June 2023. 

The new Trelawny Scanning Suite has two state-of-the-art Philips MRI scanners, four ultrasound rooms, consulting rooms and an in-bed waiting area. The Lowen Ward upstairs, which has been relocated from elsewhere in the hospital, provides 24 haematology and oncology beds in three four-bedded rooms and 12 single ensuite rooms, plus emergency care, palliative care and iodine therapy suites. The plantroom contains 13 separate air-handling units to ensure infection prevention and control.

BAM’s design partners were Stride Treglown, Arup and Hoare Lea, and the Trust acted as NEC project manager. The project was shortlisted for the Social Infrastructure Project of the Year in the 2024 British Construction Industry Awards. 

Cost certainty

Project manager Lewis Saundry says the Trust chose to award the project via the NEC-based ProCure22 framework as it provided cost certainty and access to pre-vetted tier 1 contractors. ‘NEC3 ECC Option C allowed us to allocate risks to the appropriate owner to manage them, and the contract’s pain/gain mechanism provided an incentive to the Principal Supply Chain Partner to make savings throughout the design and construction stages of the project.’ 

Saundry says NEC’s clear and simple language was a great benefit. ‘On this project it clearly defined each duty holder and how they should act under the contract. Its collaborative approach to contract management also helped to minimise the risk of disputes.’ 

He says another major benefit was NEC’s early warning procedure. ‘This allowed the project team to identify, monitor and mitigate risks at the earliest opportunity through regular commercial meetings. This was particularly significant while the project was impacted by the Covid-19 pandemic.’

Collaborative approach

 Saundry says the ECC Option C pain/gain mechanism ensured that the contractor was responsible for all costs beyond the agreed target cost, effectively providing the ProCure22 guaranteed maximum price. ‘Also, by ensuring timely notification and agreement of NEC compensation events, the project team was able to accurately forecast final costs throughout construction.’    

He says the project team fully embraced the NEC requirement to act in a ‘spirit of mutual trust and co-operation’. ‘The resulting collaborative approach included engaging with external organisations for advice and guidance on best practice, conducting regular familiarisation events for our Estates Team to understand and witness operation of new assets, and several timely construction visits for end-users to view progress and provide input to complex matters.’ 

Saundry concludes, ‘We successfully delivered a defect-free project at handover by implementing the clear and concise NEC defect management process. Defects were identified and notified early, enabling BAM to correct and remediate within the contracted timescales.’

Benefits of using NEC

• NEC clearly defined each duty holder and how they should act under the contract, and its collaborative approach to contract management minimised the risk of disputes.
• ECC Option C allowed risk to be allocated to the appropriate owner to manage them and the early warning procedure allowed the project team to identify, monitor and mitigate risks at the earliest opportunity.
• ECC Option C pain/gain mechanism incentivised the contractor to make savings during design and construction and ensured it kept within the target cost.
• NEC process for timely notification and agreement of compensation events meant the project team could accurately forecast final costs throughout construction.
• NEC’s clear and concise defect management process meant defects were identified and notified early, resulting in a defect-free handover.