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National Children's Hospital Expenditure

Dáil Éireann Debate, Tuesday - 12 February 2019

Tuesday, 12 February 2019

Questions (359)

Peadar Tóibín

Question:

359. Deputy Peadar Tóibín asked the Minister for Health if unsuccessful bidders for development of the national children's hospital will be included in the investigation into the spiralling of costs; if employees who undertake the procurement for large infrastructure projects such as this have a contractual obligation to ensure that costs of projects do not spiral out of control; and if not, the way in which he will hold those responsible for the cost overruns to account. [6341/19]

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Written answers

The terms of reference of the independent review of the escalation in cost in determining the adjusted contract sum in relation to the new children's hospital do not address issues relating to unsuccessful bidders.

 The review will establish the sequence of events in relation to the cost increases experienced by the project; establish what was known, when and by whom, and the reporting of relevant information from the project team to the relevant oversight and governance bodies including NPHDB Board and also its Committees, the HSE and the Department of Health. The review will comment not just on the major residual risks and the robustness/completeness of the current forecasts, but also identify and where possible quantify those risks contractually excluded from the Guaranteed Maximum Price/adjusted contract sum.

The terms of reference also require the review to develop any further recommendations which may identify any areas of potential cost savings or reductions, which are consistent with the applicable contractual undertakings and the delivery of the project, in light of its current status, address major residual risks, control and oversight issues and bring greater oversight of performance and value for money. Under the terms of reference, the review will deal with the accountability of the relevant key parties, functions and roles. This may inform next steps by decision makers, including Government.

The review will be completed by the end of March, subject to availability of relevant documentation and personnel and will inform any governance or other changes required.

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