CAPITAL COST SHARE
GUIDE
SEPTEMBER 2016
Version 2.0
Ministry of Health and Long-Term Care
Copies of this report can be obtained from
Health Capital Investment Branch
Tel: 416-212-0823
Fax: 416-326-5533
Table of Contents
Introduction Capital Cost Share Guide for Hospitals
4
1
8
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
2.4
3
3.1
3.2
3.3
4
4.1
4.2
4.3
Capital Cost during Construction
Pure Construction Costs
Financing Costs during Construction Period – AFP Only
Other Turnkey Costs – Project Co. DBFM Only
Other – Ancillary Costs Related to Construction – Project Co.DBFM Only
Other Transaction Costs during the Construction Period – DBFM Only
Hospital Related Project Costs
8
17
18
18
18
19
Ancillary Costs
Post Contract Contingency Allowance
Furnishings and Equipment
Infrastructure Ontario Costs – AFP only
19
27
28
28
Maintenance Costs – AFP Models Only
29
Financing Costs during the Operational Term
Lifecycle Costs
Other Transaction Costs during the Operational Term
General Costs
Commissioning
Insurance
Taxes
29
29
29
30
30
30
31
Appendix 1
33
Appendix 2
34
Appendix 3
35
Introduction
Capital Cost Share Guide for Hospitals
Hospital Capital Cost Share Policy:
In June 2006, the Ministry of Health and Long-Term Care announced its policy for
revised hospital capital cost sharing. The 2006 policy applies to hospital projects
granted approval to award a construction contract on or after April 1, 2006.
The key components contained in the 2006 policy are as follows:






The ministry will provide 90% funding for eligible construction/capital costs;
The ministry will provide 100% funding for eligible planning, design, financing and
transaction costs;
The ministry will provide 100% funding for eligible new major radiation therapy
equipment for hospitals with regional cancer centres;
The ministry will provide 100% funding for eligible construction/capital costs for
longer-term mental health, and mental health programs transferring from former
provincial psychiatric hospitals;
The ministry will provide a minor non-depreciable capital equipment allowance;
Hospitals are responsible for all other costs associated with new furnishings and
equipment and continue to be responsible for replacement equipment.
Policies regarding the eligibility of items for ministry capital cost sharing did not change
in 2006 and are identified in the Guide. Non-shareable costs are those that are ineligible
for ministry capital funding, such as constructing a parking facility or renovating or
constructing a gift or coffee shop which are revenue producing. While the eligibility for
most cost items is addressed, you may request further clarifications regarding any specific
cost from your senior consultant at the Health Capital Investment Branch.
Note: Community Health Centres, Community Mental Health and Addictions agencies
and long-term care supportive housing projects are eligible up to 100% capital cost
sharing and there are some differences in policies for eligibility. Contact the Health
Capital Investment Branch for further information.
Capital Cost Share Guide (September 2016)
4
How to Use the Guide:
This Capital Cost Share Guide has been developed to assist the staff of the ministry’s
Health Capital Investment Branch to develop Cost Share Agreements to inform ministry
approvals during the planning and design stages of a capital project (particularly at pretender or pre-RFP), and to then assist hospitals to complete the Final Estimate of Cost
form based on the results of the bidding process. Refer to Appendix 3 for a list of
acronyms.
There are four primary sections in the Guide
1.
2.
3.
4.
Capital Costs During Construction – encompasses all hard construction costs
Hospital Related Project Costs – encompasses all ancillary costs
Maintenance Costs – applicable AFP Model projects only
General Costs – those costs which apply in more than one section
The Guide has been developed to align with both the Cost Share Agreement and Final
Estimate of Cost forms. Use the Guide to determine the eligibility of any cost item and
then reference the relevant table to determine the rate of ministry cost sharing; 100%,
90%, 0%, or a blended percentage. The following three tables outline the ministry’s cost
share rates:
Table 1. Hospital Program Type Cost Share
Programs/Services
Cost Share
Eligible – associated with the following program elements:
Acute Care
90%
Rehabilitation (non-acute)
90%
Complex Continuing Care (non-acute)
Longer Term Mental Health (LTMH) & Mental Health
programs transferring from former provincial
psychiatric hospitals
LTMH & Acute/Non-Acute Care
Ineligible – includes revenue-generating, retail,
research and associated costs (e.g. escalation,
grossing factor, site development, HST pro rated
eligible-ineligible)
90%
100%
Blended rate*
0%
*The blended rate should be specific to the project and determined using an
acceptable utilization-based methodology
Capital Cost Share Guide (September 2016)
5
Table 2. 100% Cost Share (e.g. AFP- related costs and planning costs)
Component
Eligible
Cost Share
100%
Ineligible
0%
Table 3. New Furniture and Equipment (No Replacement F&E) Cost Share
Programs/Services
Cost Share
Eligible – associated with the following elements:
Cancer Radiation
100%
Chronic Kidney Disease/ End Stage Renal Disease/
Dialysis
Equipment Built In (In-Contract)
LTMH
0%
See Table 1
100%
All other
0%
Throughout the guide the appropriate table is referenced in the Cost Shareable column.
Ancillary Costs:
The Guide clarifies those ancillary costs for which percent-driven caps or maximum costs
are imposed for ministry cost sharing. These ancillary costs are shareable only to a
maximum amount based on a percentage of the total shareable construction costs
defined as the sum of hard construction costs (including escalation), construction
insurance costs, cash allowances and built-in equipment at Final Estimate of Cost.
These costs represent the defined ‘hard construction’ cost throughout the Guide.
Percent-driven caps for ancillary costs include:
Cost Consultant
Functional Programmer
Prime Consultant
Disbursements
Project Management
Capital Cost Share Guide (September 2016)
Up to
0.5%
1%
8% for new construction;
10% for renovations and up to 11% for DBFM projects
10% of the Shareable Prime Consultant cost
Where the defined construction cost is:
< $50M = 3%;
$50M-$75M = $1.5M; or
> $75M = 2%
6
Post Contract Contingency Allowance:
The ministry will share in a maximum post contract contingency allowance for
unforeseeable items only of 3% of shareable defined construction costs for a new build
or 5% for renovations or a combination of renovations and new construction.
Minor Non-Depreciable Equipment Allowance:
The ministry will fund a minor non-depreciable capital equipment allowance of 2% of
shareable defined construction costs.
Capital Cost Share Guide (September 2016)
7
A.
Hard Construction Costs – Refer to Table 1
1 Capital Cost during Construction
1.1 Pure Construction Costs
A.

Hard Construction Costs
The ministry cost shares in all eligible construction costs including all material, labour
and associated costs such as escalation, grossing factor, site development, and
HST.
Component
Building
Element
Cost
Shareable
Table 1
Eligible Areas:
Yes

Programs & services
support areas,
infrastructure
Yes

Shelled space and partial
fit-out to base building for
revenue generating
items/retail
Yes
Notes
Defined as per the approved
project scope.
Applicable only to small areas
related to ineligible items
e.g. chapel/ceremonial space,
retail, foundation offices etc.
Base building includes maintaining
the space for life safety and
compliance with codes.

Shelled space and partial
fit-out to base building for
insured diagnostic
imaging services
Yes
Applicable only to small areas that
are part of a development or
redevelopment project.

Shelled space and fit-out
to base building for
insured diagnostic
imaging services
Yes
Applicable only to hospital sites
whereby the service has been
deemed necessary by an expert
steering committee and where a
business case substantiates such
a request (e.g. PET-CT)
Capital Cost Share Guide (September 2016)
8
A.
Hard Construction Costs – Refer to Table 1
Component
Element
Ineligible Areas:
Cost
Shareable
Table 1
No
Notes
Separately identify the shell and fit
up costs, as fit up costs are not
eligible for cost share whereas the
shell costs are eligible.
When the footprint or an entire
floor is affected by the ineligible
area, the shell and associated
gross up are also considered
ineligible in addition to the fit up.

Abatement

Auditorium
(non-academic)

Chapel/ceremonial space
(religious and cultural)
Capital Cost Share Guide (September 2016)
No
Yes/No
No
In cases where the abatement of
the property is of no future hospital
use e.g. asbestos
Requires Business Case or
rationale to support cost share.
Fit-out only.
9
A.
Hard Construction Costs – Refer to Table 1
Component
Building
Element
Ineligible Areas:

Cost
Shareable
Table 1
No
Claims – Delay
Notes
A request by a contractor for
compensation above the tender
amount for delays created by the
hospital, labour disruptions,
weather, etc.
Claims are to be resolved between
the hospital and the contractor with
the advice of the Prime Consultant.

Excessive design
No
Beyond best practice: over and
above what is described in the
Generic Output Specifications
(GOS)
Atria, curtain wall: up charge or
premium related to design features
beyond best practice.
Finishes: Up charge or premium
beyond best practice.

Foundation offices
No

Gardens/Landscaping
No
In excess of approved Functional
Program (FP) i.e. Therapeutic
Garden within FP scope is eligible.
See separate Site Development
section.

Labour Costs
(hospital staff)
No
When hospital staff positions are
utilized during regular working
hours and not backfilled.

LEED
No
Not eligible when constructed
beyond a level that would achieve
LEED Basic certification
(certification costs not eligible).
Yes
The ministry’s 2008 GOS document
establishes minimum performance
requirements for each potential
LEED mandatory Sustainability
Measure. Costs related to meeting
these minimum performance
requirements will be supported by
the ministry. Costs related to meet
higher performance levels are not
supported.
Yes
DBFM projects are eligible to
design to LEED Silver (certification
costs not eligible)
(Leadership in Energy
and Environmental
Design)
Capital Cost Share Guide (September 2016)
10
A.
Hard Construction Costs – Refer to Table 1
Component
Building
Design Scope
Contingency
Element
Cost
Shareable
Table 1
Ineligible Areas:
Notes
See separate Parking section.

Parking

Research
No

Revenue generating/
retail area fit-up
No
For example: Retail – pharmacy,
food areas (excludes hospital
sponsored cafeteria), gift shop.

Shelled space for future
programs/services
No
May be retroactively cost shared at
the time of program approval and
fit-out of the shelled space.
Yes
An allowance which is carried
within the cost estimate. This
allowance is intended to inform the
adequacy of construction costing
data through the various stages of
the design process, when all items
which may impact cost estimates
are not identified or known.
Design Scope Contingency to be
carried in the cost estimates based
on the applicable percentage of the
defined hard construction cost
based on the Class of estimate as
follows:
Class “D” at 20%
(Stages 1 & 2 Early Planning)
Class “C” at 15%
(Stage 3.1 Schematic Design)
Class “B” at 10%
(Stage 3.2 Design Development)
Class “A” at 5%
(Stage 4.1 Pre-tender estimate)
Escalation
Yes
On eligible hard construction costs
from time of estimate to anticipated
date of construction.
Included in Total Project Cost
during design and planning stages
only. This cost may or may not be
fully realized in the bid.
Grossing Factor
Capital Cost Share Guide (September 2016)
Yes
For those projects where an entire
floor(s) is own funds the grossing
factor needs to be separated out
and is non-shareable.
11
B.
B.
Non-Building Hard Construction Costs – Refer to Table 1
Non-Building Hard Construction Costs
Component
Communications
Element
Cost
Shareable
Table 1
Notes
Voice/Data, infrastructure,
cabling, computer rooms and
closets
Yes
Conduit and cabling terminating
outside of walls and conduit risers.
Includes cabling and antennae for
wireless communication, racks,
and program tie-ins such as nurse
call systems.
Excludes devices, servers, etc.
Decanting / Phasing
& Logistics
IT Infrastructure
Yes
Parking
Temporary relocation during
construction.
Decommissioning
Capital Cost Share Guide (September 2016)
Includes physical relocation of
existing IT infrastructure and
connections to data sources using
external incremental IT resources.
See separate Parking section.
Yes
If renovations, and/or off site
lease/leasehold improvements
support the approved project.
Yes
Eligible costs include those to
moth-ball the building, securing it
to prevent unauthorized entry,
manage risk of fire, etc.
No
Costs associated with preparing a
property for future sale are not
eligible for cost sharing. Should
there be an exceptional
circumstance in which net
proceeds from the sale of property
are not adequate to cover the cost,
a business case can be submitted
outlining a decommissioning plan
for ministry consideration.
12
B.
Non-Building Hard Construction Costs – Refer to Table 1
Component
Element
Demolition
Cost
Shareable
Table 1
Notes
Yes
Costs are eligible only if demolition
of a building is required to
accommodate approved new
construction.
No
Hospitals are expected to fund
demolition from the proceeds of the
sale of property. Should there be
an exceptional circumstance in
which net proceeds from the sale
of property are not adequate to
cover the cost, a business case
outlining a disposal plan can be
submitted for ministry
consideration.
If the business case is accepted
the costs, determined after
deducting the proceeds from the
sale of the land, would be shared
according to Table 1.
Facility Maintenance
Costs
No
Does not form part of the Capital
Project cost as it is an operating
expense.
Refer to Bulletin
Parking
Above ground new parking
structure
No
On grade parking (surface)
No
E.g. asphalt, booths, gravel,
meters, heaters, etc.
Permanent relocation surface
parking
Yes
Replacement of existing parking
which has to be permanently
relocated, to accommodate or
support the eligible construction.
Site development below
asphalt
Yes
Work to the asphalt level (below
the asphalt) is eligible for cost
sharing.
The cost consultant should
separate out the cost of surfacing
the parking area from the Site
Development
Capital Cost Share Guide (September 2016)
13
B.
Non-Building Hard Construction Costs – Refer to Table 1
Component
Parking
Element
Temporary surface parking
during eligible construction
Cost
Shareable
Table 1
Yes
Notes
To support relocation or decanting
of parking for eligible construction.
Includes: asphalt, lighting, heaters
Underground new parking
structure
No
Underground parking
facilities/structure to support
eligible program/service areas
on floors above.
Yes
Portion of footings and special
conditions e.g. dewatering, shoring
and temporary shoring during
demolition if needed.
st
1 floor excavation to support the
clinical floors/building.
Site Development
Gardens – Therapeutic
Yes
Scope as per approved Functional
Program.
Gardens – Water features,
furnishing, public art
No
Beyond the scope of the Functional
Program.
Heliport (new/relocated)
Yes
New – based on Business Case
Relocated – to accommodate the
construction project.
Landscaping on site
Yes
To support site plan approval
(walkways, ground cover, shade
trees around building access,
storm water management, etc).
No
Landscaping to support own funds
or in excess of that required for site
plan approval e.g. civic squares.
On site – Connection to
existing services (tie-ins)
Yes
Includes: roads, water mains, storm
and sanitary sewers, storm water
ponds, hydro distribution etc.
On site – To be transferred
post construction
No
Worked on land owned by the
hospital during the project, but
knowingly to be transferred to the
city / municipality after the project
work is complete.
Capital Cost Share Guide (September 2016)
14
B.
Non-Building Hard Construction Costs – Refer to Table 1
Component
Site Development
Element
Cost
Shareable
Table 1
Notes
Off site – Bringing services to
the hospital site
No
Bringing services to the hospital
site is the financial responsibility of
the utility provider. E.g. bringing
the sewer system to the site is
ineligible.
Off-site work also includes
roadwork, civil work, landscaping,
sidewalk, as well as utilities.
Parking – Below asphalt
See separate Parking section.
Remediation
Yes
Removal of contaminated soil.
Road transferred post
construction
No
Road transferred to other party
post construction.
Yes
For eligible areas only.
Wayfinding /
Signage
Capital Cost Share Guide (September 2016)
15
C.
Cash Allowances
Component
Element
Cash Allowance(s)
Cost
Shareable
Table 1
Yes
Notes
Provide list and rationale for each
item.
For a scope that cannot be defined
by a set of contract documents
(See Bulletin on Cash Allowances,
Change Orders, and Post Contract
Contingency Allowance).
Amount carried within the tender
package for specifically identified
purposes (e.g. hardware
allowance, asbestos abatement,
site conditions, replacing hidden
infrastructure exposed during
construction, etc.).
Not to be used in place of Post
Contract Contingency Allowance
Abatement – asbestos or
mould (renovations/
demolition)
D.
Yes
Can be included in the hard
construction cost. Includes the
removal of hazardous materials
and remediation efforts. Must be
for either renovation or demolition
of existing building(s) required for
eligible projects.
Equipment Built In – See Furniture & Equipment Section
Capital Cost Share Guide (September 2016)
16
E.
Risk
Component
Risk
(Adjustment on
Construction Costs)
Element
Cost
Shareable
Table 1
Notes
Risk Transfer
Yes
Costs associated with the transfer
of risk in the AFP model.
Design/Scope Risk
Yes
Carried in early stage budgets (MP,
FP) to cover risk of additions to
scope by the client as the project is
developed.
Market
Yes
Carried to cover construction
market risk during a period of high
utilization of construction industry
capacity, which impacts
competitiveness, availability of
bidders, and construction pricing.
Location
Yes
Carried to cover risk of higher
construction pricing for large
institutional projects in smaller
markets at a distance from major
population centres.
Own Funds
No
These costs may or
may not be fully
realized in the bid.
1.2 Financing Costs during Construction Period –
AFP Only
Component
Financing costs
Element
Cost
Shareable
Table 2
Notes
Shareable items
Yes
See section 1.5
Non-shareable items
No
Related to all Own Funds
components.
Capital Cost Share Guide (September 2016)
17
1.3 Other Turnkey Costs – Project Co. DBFM Only
Component
Element
Cost Shareable
Notes
Table 1
Monitoring of
Equipment
Relocation
Moving of
equipment
E.g. Diagnostic, Supply,
Processing & Distribution,
Monitoring
Transition Costs
Yes
During project only –
subsequently part of operating.
Yes
May be included under
construction related cost.
Yes
Physical move costs, education
and training associated with the
approved project conducted by
Project Co. during the project.
Subsequent moves and training
are part of operating.
1.4 Other – Ancillary Costs Related to Construction –
Project Co.DBFM Only
Component
Element
Building Permit Fee
Equipment
Allowance
Cost Shareable
Table 1
Notes
Yes
Project Co. procured Loose
Furniture & Equipment
See separate Furniture &
Equipment section
Other consultant
costs
Yes
Associated with design and
construction.
Project Co Design
Fees
Yes
Includes disbursements, cost
consultant & HST rebate
1.5 Other Transaction Costs during the Construction
Period – DBFM Only
Component
Element
Cost Shareable
Table 2
Special Purpose
Vehicle (SPV) Costs
SPV, trustee & agent fees,
finance co., technical
advisor, management fees,
honoraria
Yes
Notes
Design and Bid Fee
Yes
Paid by Project Co. to other
qualified but unsuccessful
proponents.
Independent
Certifier Costs
Yes
Commissioning agent
independent from the general
contractor or Project Co.
Capital Cost Share Guide (September 2016)
18
A.
Percent Driven Costs – Refer to Table 2
2 Hospital Related Project Costs
2.1 Ancillary Costs




A.


The ministry cost shares in all eligible planning and design costs.
Select ancillary costs are capped at a set percentage of a defined Shareable sum.
While ancillary costs are estimated during the early planning stages, the actual
eligibility is determined on a line by line basis at pre-tender/Request for Proposal
(RFP).
If existing staff are used to fill any consultant or management position to support the
Capital Redevelopment Project during regular working hours the HSP is required to
backfill the individual’s previous position for the expenses to be eligible.
Percent-Driven Costs
Percent driven costs shareable to a maximum amount are based upon a percentage
of the total shareable sum of the following:
 hard construction costs including escalation;
 construction insurance costs;
 cash allowances; and
 built-in equipment
The HSP’s cost consultant must provide the percent breakdown of renovated to new
space to determine the calculation for the Prime Consultant cap.
Component
Element
Construction
Monitor
See Project Management
Yes
Cost Consultant/
Quantity Surveyor
Functional
Programmer
Notes
Cost
Shareable
Table 2
Up to 0.5%
Independent from the Prime
Consultant.
Includes: Process Redesign
consultant for standardization
and food services, materials
management consultant, and
Master Program.
Yes
Up to 1%
Independent consultant retained by
the hospital to develop a
Functional Program.
Includes Operational Day costs.
Minor Non –
Depreciable
Equipment
Allowance
Capital Cost Share Guide (September 2016)
Yes
2% Allowance and applicable to
eligible items <$5000.
An audited financial statement of
these articles will be required at
time of settlement.
19
A.
Percent Driven Costs – Refer to Table 2
Component
Element
Post Contract
Contingency
Allowance
Prime Consultant
Notes
Cost
Shareable
Table 2
See Post Contract Contingency
Allowance Section 2.2
Includes: Architect (to include
interior design, lighting and
value engineering in basic
service), Structural Engineer,
Mechanical Engineer (to
include cold storage and
refrigeration in basic service),
Electrical Engineering
Consultant.
Yes
Note: Defined construction cost
adjusted to remove any embedded
sales tax prior to application of the
ministry cap for Prime Consultant
only.
Up to
8% for new construction
10% for renovations and
11% for DBFM
(10% + 1% contingency based
on rationale)
To plan, design, and prepare
contract documents and tenders
and administer the contract
throughout construction.
Prime Consultant
Disbursement (s)
Project Management
Includes: Construction
Monitor, Moving & Occupancy
Planner, and Scheduling
consultant
Yes
Up to 10% of the shareable Prime
Consultant Cost.
Yes
Where the defined construction
cost is:
<$50M = 3%
>$50M but <$75M = $1.5M
>$75M = 2%
Capital Cost Share Guide (September 2016)
20
Non Percent-Driven Costs – Refer to Table 2
B.1
Non Percent-Driven Costs – Note this section contains two
parts
B.


B.1 – Non Percent-Driven Costs – Costs primarily during planning and design and are
cost shared under Table 2.
B.2 – Non Percent-Driven Costs – Costs primarily during construction and are cost
shared under Table 1.
B.1 Non Percent-Driven Costs – Refer to Table 2

Blended rates apply for renovation and new construction combination projects.
The HSP cost consultant must provide the percent breakdown in renovated to
new space.
Component
Element
Cost
Shareable
Notes
Table 2
Consultants
Abatement/Asbestos
Yes
e.g. indoor environmental
Acoustics
Yes
Business case/rationale required.
Aviation
Yes
Civil Engineer
Yes
Greenfield/Brownfield site
development e.g. storm water
management etc.
Code
Yes
Ontario Building Code and Ontario
Fire Code
To facilitate design and costs
associated with code requirements.
Colour
Yes
Where indicated for specialized
programs to support or enhance
care e.g. paediatrics, palliative
care, psychogeriatrics
Commissioning
See Commissioning section
Electrical Engineer
See Prime Consultant
Elevator
Yes
Energy Management
Yes
Environmental
Yes
Capital Cost Share Guide (September 2016)
e.g. air quality, assessments,
geotechnical, hazardous materials,
soil, noise, etc.
21
B.1
Non Percent-Driven Costs – Refer to Table 2
Component
Consultants
Element
Equipment
Notes
Cost
Shareable
Table 2
Yes
Programming, develop clinical and
technical criteria, and procurement
specifications.
In-contract base building furniture
and equipment are ineligible.
Financial
Yes
For AFP financing and
procurement
Food Services
Yes
Includes study of food delivery
options and kitchen layout,
equipment, servery layout including
refrigeration.
Excludes third party providing food
services to the hospital for
profit/revenue generating.
Hardware
Yes
Health and Safety
Yes
Only if an in-house resource is not
available.
Infection Prevention and
Control
Yes
Only if an in-house resource is not
available.
Information Technology and
Communication Systems
Yes
Only if an in-house resource is not
available.
Green/Brownfield – includes
system planning and specification
development.
Interior Design
No
Included in architect’s basic
services
Laboratory Design
Yes
Land Survey
Yes
During design phase only. See
section 2 B.2 for during
construction.
No
For the purpose of land purchase.
Landscaping/Horticultural
Yes
Required for municipal site plan
application and to support
therapeutic gardens.
Legal
Yes
For preparation of contract
documents only.
Capital Cost Share Guide (September 2016)
22
B.1
Non Percent-Driven Costs – Refer to Table 2
Component
Consultants
Element
Lighting Design
Notes
Cost
Shareable
Table 2
No
Included in architect’s and
electrical engineer’s basic services
Yes
Local Share / PCOP
No
Maintenance Planning
Yes
Where indicated for specialized
programs to support or enhance
care.
To ensure all new building systems
are functioning as planned and that
building system personnel are
trained in the use of all systems.
See Commissioning section
Master Plan
(Architect/Planner)
Yes
Outside of Prime Consultant cap
as the scope is for longer term
planning.
Eligible for cost sharing every 10
years.
Master Program
Yes
Materials Management
Outside of Functional Programmer
cap as the scope is for longer term
planning.
See Functional Programmer
Procurement advice
(specifications) should be included
in the equipment consultant costs.
Mechanical Engineer
Medical gas
See Prime Consultant
Yes
Occupancy planner/ Moving
See Project Management
Operational Commissioning
See Commissioning section
Peer Review
Yes
Process Redesign
Roof
See Functional Programmer
Yes
Scheduling
Security
Capital Cost Share Guide (September 2016)
Only if required under ministry
direction.
For testing, inspection, and
facilitating design and inspection.
See Project Management
Yes
23
B.1
Non Percent-Driven Costs – Refer to Table 2
Component
Consultants
Element
Cost
Shareable
Table 2
Structural Engineer
Notes
See Prime Consultant
Traffic
Yes
Includes Local (on-site) and
External consultants.
Transition Management
Yes
If used prior to construction start.
See section 2B.2 for during
construction.
Also see Commissioning
Urban/Municipal Planner
Yes
Value Engineering
No
Included in basic services of
architect and engineers to bring
building costs down if project is
over budget.
Where the Prime Consultant cap is
exceeded and there is significant
value engineering required beyond
the control of the Prime Consultant
team the ministry will consider cost
sharing.
Project Related
Waste Management/ Handling
No
If there are exceptional
circumstances where it is outside
of the Prime Consultant a rationale
is required.
Wayfinding/signage
Yes
If used prior to construction start.
Abandoned Planning Costs /
Sunk Costs
Yes
For design/planning/project
management or other work
previously approved and
undertaken in accordance with
specific ministry written approvals
for a project to progress from one
capital stage to another, which no
longer contributes to the current
ministry approved capital project.
Auditing
Yes
Eligible only for projects with a
TPC of >$50M with a $100,000
maximum.
Energy Management
Feasibility Study / Building
Condition Feasibility Study
Yes
LEED/Environment – eligible if not
already included in the Business
Case or Master Plan expenses.
Capital Cost Share Guide (September 2016)
24
B.1
Non Percent-Driven Costs – Refer to Table 2
Component
Project Related
Element
Post-occupancy evaluation
Notes
Cost
Shareable
Table 2
Yes
For new Greenfield/Brownfield
hospitals. New construction
approved based on rationale.
Room mock-up
Yes
Soil Testing
Yes
To inform design.
Site testing to measure vibrations
or monitor for potential risks to the
site and surrounding
neighbourhoods.
Surveys (pre-design)
Yes
As-built drawings and/or surveys at
the outset of design where
adequate drawings or surveys do
not exist.
Testing and Inspection
Yes
Consultant and services costs in
addition to Prime Consultant fees
or contractor’s price.
B.2 Non Percent-Driven Costs – Refer to Table 1

Blended rates apply for renovation and new construction combination projects. The
HSP cost consultant must provide the percent breakdown in renovated to new
space.
Component
Consultants
Element
Cost
Shareable
Table 1
Notes
Campaign/Fundraising
No
Equipment Procurement
Yes
Equipment Coordinator
Yes
Furniture Planning and
coordination
Yes
Land Survey
Yes
During construction only. See
above section for during design.
No
For the purpose of land purchase.
Yes
The process consultant used to
bring the building into use after
construction start only.
Operational Commissioning
Capital Cost Share Guide (September 2016)
Only during the project.
25
B.2
Non Percent-Driven Costs – Refer to Table 1
Component
Element
Cost
Shareable
Table 1
Notes
Consultants
Transition Management
Yes
If used post construction start. See
section above for costs incurred
prior to construction.
Project Related
Arbitration and Adjudication
Yes
This allowance/provision may be
required occasionally when
multiple contractors are
simultaneously on site and
disputes arise.
Building Information
Management System
Yes
Additions to existing buildings may
require upgrade and expansion of
the existing Building Automated
Controls (BAC).
Includes education and training
software for HSP staff for BAC.
Building Permit
Yes
Commissioning
See Commissioning section
Decanting/Phasing &
Logistics
Yes
See Decanting section 1.1 B
Decommissioning
Yes
See Decommissioning
section 1.1 B
Demolition Permit
Yes
See Demolition Section 1.1 B
Development Levies
Yes
Mandatory regional and municipal
fees.
Insurance
Yes
See Insurance section
Modelling – Software
modelling for building system
functionality and energy
performance
Yes
Only energy consumption (LEED)
modelling to Silver is eligible as a
separate cost (e.g. Building
Information Modelling/BIM)
Moving Relocation
Yes
Conducted by the HSP for move of
patients and support services,
equipment and re-installation of
existing equipment.
Security Services
Yes
Eligible if additional security is
required beyond what is specified
in the construction contract. The
hospital must provide a business
case.
Capital Cost Share Guide (September 2016)
26
B.2
Non Percent-Driven Costs – Refer to Table 1
Component
Project Related
Element
Notes
Cost
Shareable
Table 1
Site Plan Application
Yes
Testing and Inspection
Yes
During construction only.
Wayfinding/signage
Yes
Actual signs post design and
planning. If it is included in the
General Contract, show as part of
construction costs.
2.2 Post Contract Contingency Allowance
Component
Post Contract
Contingency
Allowance
Element
Cost
Shareable
Table 1
Unforeseeable change orders
(may include orders issued by
rd
3 party / local authorities)
Yes
Notes
5% for renovations or a
combination of renovations and
new construction
3% for new construction
(Greenfield or brownfield)
See Bulletins on Change
Orders, Cash Allowances,
and Post Contract
Contingency Allowances.
Hospitals must carry Post Contract
Contingency allowance on, at a
minimum, eligible construction
until;

Settlement for Traditional

Substantial performance/
settlement for AFP
Hospital must advise ministry as
soon as a significant unforeseeable
condition is identified and obtain
ministry review and
advice/agreement on eligibility.
Unforeseen Change Orders
No
Owner Driven Change Orders
No
Capital Cost Share Guide (September 2016)
Resulting from design/coordination
errors and omissions
27
2.3 Furnishings and Equipment
Component
Element
Minor Non –
Depreciable
Equipment Allowance
New Equipment
Notes
Cost
Shareable
Table 3
See Percent driven costs section
(2A)
Cancer (Major Radiation)
Yes
For new major radiation equipment
for hospitals with regional cancer
centres (See Appendix 2)
If included a detailed list must be
provided.
Chronic Kidney Disease/ End
Stage Renal Disease/ Dialysis
Equipment Built In (Incontract)
No
New dialysis equipment is eligible
for cost sharing by the ministry
through the operational budget.
Yes
Exceptions – Reverse Osmosis
(RO) system and Central Dialysate
Delivery System included in Built-in
Equipment.
Yes
All construction costs need to be
reviewed for the inclusion of loose
furnishings and equipment. See
Equipment Matrix in Appendix 1
A detailed list must be provided.
Equipment
Allowance
Equipment Not Built In
No
LTMH
Yes
All other
No
Not built in
No
Only for Project Co. procured
Loose F&E for DBFM projects.
No
To be included in Local Share Plan
only, not to be included in the TPC.
Replacement
Equipment
A detailed list must be provided.
2.4 Infrastructure Ontario Costs – AFP only
Component
Element
Cost
Shareable
Table 2
Transaction Costs
Yes
OIPC Project Costs
Yes
Capital Cost Share Guide (September 2016)
Notes
28
3 Maintenance Costs – AFP Models Only
3.1 Financing Costs during the Operational Term
Component
Financing
Element
Shareable
Notes
Cost
Shareable
Table 1
Yes
If the hospital is fully paying its
local share (own funds + hospital
share) at substantial completion,
the financing cost during the
operational term is fully funded by
the ministry.
If the hospital is not fully paying its
local share at substantial
completion, the hospital will have
to assume a share of the financing
cost during the operational term.
The cost sharing of the long-term
financing will consider the amount
of local share that the hospital is
paying at substantial completion
versus the amount of local share
that it is financing through the deal.
Non-Shareable
No
Own funds
3.2 Lifecycle Costs
Component
Element
Notes
Cost
Shareable
Table 1
Life cycle
Shareable
Yes
Associated with replacing building
components over the life of the
building.
Non-shareable
No
Own Funds
3.3 Other Transaction Costs during the Operational Term
Component
Element
Cost
Shareable
Table 1
Special Purpose
Vehicle (SPV) Costs
SPV, trustee & agent fees,
finance co., technical advisor,
management fees, honoraria
Yes
Base Relevant
Insurance Costs
Capital Cost Share Guide (September 2016)
Notes
Yes
29
4 General Costs
4.1 Commissioning
Component
Element
Cost Shareable
Notes
Table 1
Commissioning
rd
Independent Certifier - 3
party commissioning agent
agreed to by hospital and
Project Co. or hospital staff
only if positions are
backfilled.
Yes
Independent from general
contractor or Project Co.
Focuses on mechanical,
electrical and specialty
systems to ensure that
performance of equipment
and systems are improved &
meets performance
requirements (defined in
contract docs)
See Ancillary section as well.
Yes
Process of bringing a building
into use e.g. occupancy,
furniture and equipment
(delivery, installation, testing
and acceptance) and includes
move of patients, material and
staff.
Type
Cost Shareable
Table 1
Notes
Project Co. /
General
Contractor
Bid Bonds
Errors and Omissions
Performance Bonds
Material and Labour Bonds
Liability
Yes - Mandatory
Included in the bid
Health Service
Provider
Liability
Operational & during
Construction (Transition
Management)
4.2 Insurance
Carrier
Capital Cost Share Guide (September 2016)
Yes - Optional
Conditional based on advice of
the insurance advisor/internal
liability carriers
30
4.3 Taxes
Component
Element
Cost
Shareable
Notes
Table 1
HST
Please note that HST should not be added
to allowance(s) and risk(s) as it is
calculated on the sum of the estimated
construction costs
83% rebate on Federal taxes
HST Federal
Tax
5%
HST Federal
Rebate
83%
HST Provincial
Tax
8%
HST Provincial
Rebate
87%
GST
Tax
5%
Rebate
83%
Combination
projects
87% rebate on Provincial taxes
For projects with both HST and GST expenses, costs will be assessed based on
prevailing tax structure at the time when costs of individual project components
were incurred.
Capital Cost Share Guide (September 2016)
31
December 15th, 2006
Capital Cost Share Guide (September 2016)
32
Appendix 1
* Building Systems (Built In) include Structure (Building Envelope), Supply
of air (HVAC), supply of water (plumbing) supply of electricity (lights) and
life safety and IT that supports the building Systems (Building Controls).
Equipment Matrix
Revised August 2011
90% /100% Eligible
Hospital Building*
Systems
(Built In)
Regulatory
Compliant
(OBC,
CSA)
Substantial
Completion
(Operating
Hospital)
Hospital Equipment
Systems (Not Built
Examples






HVAC Equipment
IT Infrastructure (Cables) - Building
Plumbing Fixtures
Medical Gases
Headwalls (for Medical gases)
Service Columns in lieu of Headwalls (for
Building Systems in ICU / treatment / procedure
areas)
o
May be in the form of an articulating arm
Procedural Lights
Built-in Fume Hoods, sterilizers, refrigerators


0% Ineligible
Examples

Patient Lifting Device
Examples
Examples










In)
Patient Lift Tracks
Ceiling Mounts for Articulating Arms
IT Infrastructure (Cables) – Communication
Therapeutic Bath Tubs (CCC / Rehab /
Maternal)
Signage
Walk-in Refrigerators
Reverse Osmosis (RO) Water Systems
(Dialysis)
Nurse Call / Patient Wandering Systems
Millwork / Casework for fixed cabinetry
Millwork / Casework / Modular equivalent for
communication stations














Building System
Equipment
Diagnostic Imaging: CT Scanner / MRI
IT - Computers, Phones, Data Hubs
CCTV / Monitors
Additional Articulating Arms (in addition to
Service Columns if specified)
Blanket Warmers
Portable Fume Hoods
Portable Sterilizers
Portable HEPA Filters
Utility / Supply Carts
Moveable Casework in lieu of utility carts /
storage cabinets
Appliances (refrigerators, microwaves)
Ice Machines
Systems Furniture for Administrative
Functions
Window Coverings
Operational
Equipment
Note: Hospital may include Furniture and Equipment under “Built In” equipment however Ministry Cost
Share policy still applies. If the F & E is not eligible to be included as an infrastructure cost, the costs are
not eligible for cost share unless the project is LTMH. If the project is LTMH only new eligible F & E is
eligible.
Capital Cost Share Guide (September 2016)
33
Appendix 2
Major Radiation Capital – Ministry Funding Position
(based on 2005/06 Cancer Care Ontario standards for technology)
ITEM
Current Ministry
Position
Linear Accelerators
Linear Accelerator Therapy Unit (LINAC)
To be funded at 100%
Image Guided Radiation Therapy capability ( 1per 3 units)
To be funded at 100%
CR System (Req'd in existing Centres with older technologies)
To be funded at 100%
Stereotactic Capability ( Not req'd in all Centres)
To be funded at 100%
Radiation Clinical Information System (Network)
To be funded at 100%
Superficial OR Ortho voltage Unit
To be funded at 100%
High Dose Rate Brachytherapy
HDR Treatment Planning module
To be funded at 100%
HDR Brachytherapy Unit
To be funded at 100%
HDR Imaging
To be funded at 100%
Treatment Planning and Treatment Delivery
CT Simulator (incl. 2 workstations)
To be funded at 100%
Treatment Planning System
To be funded at 100%
Other Costs Associated with a new Radiation Treatment Centre
Hardware, Software, Licenses directly related to equipment installation and operation
Capital Cost Share Guide (September 2016)
To be funded at 100%
34
Appendix 3
Acronyms
AFP
Alternate Financing and Procurement
BF
Build Finance (AFP Model)
BFM
Build Finance Maintain (AFP Model)
CO
Change Order
DBFM
Design Build Finance Maintain (AFP Model)
DAA
Development Accountability Agreement
FP
Functional Program
GOS
Generic Output Specifications
GPC
Guaranteed Price Contract
HSP
Health Service Provider
LEED
Leadership in Energy and Environmental Design
LTMH
Longer Term Mental Health
MP
Master Program/Master Plan
PDC
Project Design Compliance
PCOP
Post construction operating plan
RFP
Request for Proposals
SPV
Special Purpose Vehicle
TPC
Total Project Cost
Capital Cost Share Guide (September 2016)
35
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