Report on Central Region Denmark’s risk and contingency management in two hospital construction projects
Budgets for the New University Hospital in Aarhus and the New Hospital West are DKK 6.35 billion and DKK 3.15 billion, respectively.
The government provides funding to the projects through the Kvalitetsfonden (the Quality Fund). Funding from the Quality Fund is provided on a fundamental condition concerning the financial framework set for the hospital construction projects; neither the government nor the region are allowed to inject additional funds into the projects. This means that the region must cover unforeseen expenditure either through relevant budget contingencies or by modifying the construction plans. It is therefore particularly important that risk and contingency in the projects are managed well by the region.
The purpose of Rigsrevisionen’s study is to determine whether Central Denmark Region, to the degree required, has managed risk and contingency in the two projects to prevent and handle financial pressure on the construction of the hospitals. The report answers the following questions:
- Has Central Denmark Region’s risk management in the two hospital construction projects been satisfactory?
- Has Central Denmark Region’s contingency management in the two hospital construction projects been satisfactory?
Last updated on 23 March 2017