Corven & Ashby, cost and risk advisory

ICRA construction cost impact, and what infection control does to a schedule

Schedule and delay

ICRA construction cost impact is not mainly the cost of the barriers. It is the cost of working slowly, in small areas, at restricted hours, with a procedure in front of every activity that would otherwise take an hour.

What the requirement is

Where construction happens in or next to an operating healthcare facility, an infection control risk assessment governs how the work is carried out. It classifies the work by the dust and disruption it creates and the vulnerability of the patients nearby, and it sets the precautions required.

At the lower classifications that means dust control and cleaning. At the higher ones it means sealed containment, negative air pressure with filtration, anterooms, dedicated routes, protective clothing, and work confined to defined hours.

All of it is correct and none of it is negotiable. The patients are the reason the building exists.

What is negotiable, and frequently unpriced, is how the requirement is reflected in the construction schedule and the general conditions.

A contractor pricing a renovation in an occupied facility knows this. The question is whether the classification assumed in the price matches the one the facility infection control team will actually apply, and those are set by different people at different times.

That mismatch is where the money is.

Where the ICRA construction cost impact actually lands

Productivity. The largest item and the least visible. Work inside containment with restricted access and protective equipment proceeds more slowly than the same work in an empty building, and the difference is a multiplier on labor across the whole area rather than a line item.

Working hours. Noisy or disruptive activities restricted to nights or weekends, which means premium time and a smaller crew.

Area size. Containment limits how much can be open at once, which forces sequential work where parallel work would be possible.

Setup and takedown. Every phase boundary means building a barrier, testing pressure, working, cleaning, testing again and removing it. On a project with many small phases, the setup cost repeats.

Logistics. Dedicated routes, protected elevators, material staging outside the clean area and waste removal on a controlled path.

Interruption. Clinical operations take priority. Work stops for a procedure, an alarm or an infection event, and the stop is not scheduled.

The assumption to find in the price

Every price for work in an occupied facility carries an assumption about the classification, the phasing and the hours.

It is usually a short paragraph on the qualifications page: priced on the basis of a stated classification, a stated number of phases, stated working hours and an assumption that the facility provides access at particular times.

That paragraph is the single most consequential item in a healthcare renovation price, and it is frequently shorter than the paragraph about parking.

Three things are worth testing in it. Whether the classification matches what the facility infection control team has actually said, in writing, rather than what was assumed. Whether the number of phases matches the clinical plan, because more phases mean more setup cycles. And whether the working hours assumed match the hours the department will actually release.

A price assuming four phases and daytime work, on a project the facility will run as eleven phases with night work in two of them, is not a wrong price. It is a price for a different job.

This is the same class of finding as any other stated assumption, described in testing whether the completion date is real.

A worked example

Example only$1.9M

Illustrative figures. Not taken from any client project and not a quotation.

A $22 million renovation of two floors in an operating hospital. The price assumes a stated containment classification, five phases and standard working hours.

The facility infection control plan, finalized after the price is fixed, requires a higher classification in the area adjacent to an intensive care unit, increases the phasing to nine, and restricts demolition and coring to nights across two of the phases.

What moves: additional containment and filtration for the higher classification, $260,000. Four additional setup and takedown cycles, $180,000. Premium time for night work across two phases, $410,000. Productivity loss across the extended duration, valued at $580,000. Extended general conditions for the additional fourteen weeks, $470,000.

Total $1.9 million, of which only $260,000 is physical infection control work. The rest is the cost of working differently.

All three drivers were knowable from the facility clinical plan, which existed before the price was fixed and was never read against the construction assumptions.

What can be agreed in advance

Four things, and all four are conversations rather than concessions.

The classification, confirmed in writing by the facility. Not assumed by the contractor, and not assumed by the owner either. The infection control team writes it down before the price is fixed.

The phasing plan, agreed with the clinical departments. The number of phases drives the setup cycles, and the clinical departments own the constraint. Agreeing it late means repricing.

Working hours by phase and by activity. Stated as hours per phase rather than as a general assumption, because the premium time cost is entirely a function of this.

What happens when clinical operations interrupt work. Whether interruptions above a stated threshold are compensable, and how they are recorded. Without this the argument happens in month nine with no data.

The fourth is the one most often left out and the one that produces the worst disputes, because interruptions are frequent, individually small and entirely undocumented unless somebody sets up a log on day one.

A simple daily record of stoppage, cause and duration, agreed at the start, turns that argument into arithmetic.

There is a fifth item worth agreeing, which is who pays when a phase cannot start because a department has not vacated. Decanting clinical space is an owner obligation in almost every case, and it slips more often than construction does, because moving a working department depends on where it is moving to.

On a renovation with nine phases there are nine of those handovers, and a two week slip on each is eighteen weeks that belong to the owner rather than to the contractor. Writing the decant dates into the schedule as owner obligations, with a named person against each, is the cheapest thing on this list.

What to do before you sign

  1. Get the infection control classification in writing from the facility team, per area.
  2. Agree the phasing plan with the clinical departments and count the setup cycles.
  3. State working hours by phase and by activity, not as a general assumption.
  4. Read the qualifications paragraph on occupied facility working against all three of the above.
  5. Agree how clinical interruptions are recorded and when they become compensable.
  6. Establish who provides and maintains the containment, and who tests pressure and documents it.
  7. Carry the productivity effect explicitly rather than inside a general contingency.

Item seven is the one that owners resist and should not. Productivity loss in an occupied facility is real, it is the largest component of the cost, and pricing it openly is better than pretending it does not exist and paying for it as a claim.

Item five costs nothing and prevents the most damaging dispute on this building type, because an interruption log started on day one is evidence and an interruption log started in month nine is a reconstruction.

How this reading is scoped sits in the review packages.

What we do

We read the occupied facility assumptions in the price against the facility clinical plan and the written infection control requirement, and quantify the gap: classification, phase count, hours and the productivity effect. The output is a figure for each rather than an observation. We do not set the infection control requirement, which belongs to the facility. The work is the schedule and procurement risk review.

Questions people ask

What is the largest cost of infection control on a renovation?

Productivity, not containment. The barriers, filtration and anterooms are a visible line item and a modest one. The cost of working in small sealed areas, at restricted hours, with a procedure before every activity, is a multiplier across all the labor on the job.

Who sets the classification?

The facility infection control team, against the work and the patients nearby. What matters commercially is that it is confirmed in writing before the price is fixed, because the contractor has to assume something and an assumed classification one level low changes the whole basis of the price.

How should clinical interruptions be handled?

With a daily log agreed on day one recording the stoppage, the cause and the duration, and a threshold above which interruptions become compensable. Interruptions are frequent and individually small, so without a record the later conversation is a reconstruction rather than a calculation.

Posted in Schedule and delay Healthcare Infection control Schedule Phasing

This is general information about construction contracts and is not legal advice.