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Cost normalization procedure for National Health Care Facility Benchmarking

International Construction Specialty Conference (5th : 2015 : Vancouver, B.C.); Canadian Society for Civil Engineering

This paper presents a cost normalization framework for the National Health Care Facilities Benchmarking program developed by Construction Industry Institute (CII). Since 2009, The CII has been engaged in developing this benchmarking program with government and industry participants. In the effort, the methodology and process were developed to measure health care capital project performance in terms of cost, schedule, change, space, and best practice. Hospitals are complex building systems that are becoming more challenging with ever changing codes and regulations. Reliable comparison of hospitals built in different regions requires unique normalization approach tailored specifically for health care facilities. A single cost index had not achieved the desired results; therefore a combination of indices was employed to normalize various factors for proper benchmarking. In addition to location, time and currency, space was included for proper benchmarking and performance assessment. This paper covers the issues and challenges of normalizing the costs and spaces associated with health care capital projects, and present a practical example on how cost normalization is applied to a health care capital project. Challenges and considerations which are associated with cost indices applicable to cost normalization are also discussed. This study contributes to a better understanding of cost normalization amongst health care capital projects.

Text

2015-11-27

Attribution-NonCommercial-NoDerivs 2.5 Canada

http://hdl.handle.net/2429/53790

Froese, T. M., Newton, L., Sadeghpour, F. & Vanier, D. J. (EDs.) (2015). Proceedings of ICSC15: The Canadian Society for Civil Engineering 5th International/11th Construction Specialty Conference, University of British Columbia, Vancouver, Canada. June 7-10.

Faculty; Other

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