David Cullinane
Question:319. Deputy David Cullinane asked the Minister for Health the estimated completion date and cost estimate for the national children's hospital; and if he will make a statement on the matter. [30334/23]
View answerThursday, 22 June 2023
Questions (319)
Written answers
The New Children’s Hospital (NCH) project comprises the main hospital on a shared campus at St James’s, and two Outpatient and Urgent Care Centres at Connolly and Tallaght hospitals. Both satellite centres are now open and successfully delivering a new model of ambulatory and urgent care for children and adolescents in the Greater Dublin Area.
Works have progressed on the main site to the extent that the construction and equipping phase is now approximately 85% complete against contract value. The large glass biome, that envelopes the panoramic lifts providing intuitive access to all areas of the building, is complete, as well as the rooflights and ward end glazing to the Level 4 Rainbow Garden. Landscaping and tree planting is underway in the outdoor areas. The elevated helipad space is progressing into the final stages of assembly, with helipad structure completed. The major focus in 2023 continues to be the internal fit-out and commissioning of mechanical and electrical services.
The contractor’s most recent construction programme was received in September 2022. It outlined that substantial completion could be achieved by March 2024. This programme was subsequently deemed non-compliant by the Employer’s Representative.
BAM’s most recent monthly report for February 2023, issued in April 2023, included a programme update with a substantial completion date for the new children’s hospital of May 2024. Substantial completion is informed by the main contractor’s programme of works.
The National Paediatric Hospital Development Board (NPHDB) continues to engage with the contractor to secure an updated and compliant programme, as required under the construction contract, to get certainty on this substantial completion date and to focus on ensuring that everything possible is being done to complete the construction project as soon as possible.
Following substantial completion, the hospital will be handed over to Children’s Health Ireland (CHI) for a period of operational commissioning. Planning for the complex process of commissioning over 6,150 spaces to be ready to accommodate services for patients, post substantial completion, is well advanced.
There remain risks beyond the control of the NPHDB and the contractor to the timeline, arising from Brexit, the global pandemic, the invasion of Ukraine and its impact on supply chains, global supply chain difficulties more generally, including shortages of construction raw materials, and the current inflationary pressures on energy and material costs.
Government has been previously advised that the project and programme will take longer and therefore cost more.
In 2018, the previous Government approved a capital budget of €1.433bn for the NCH project. This included the capital costs for the main hospital at St. James’s Hospital campus, the two satellite centres, equipment for the three sites, and the construction of the carpark and retail spaces. €1.3bn has been drawn down to date against this budget.
A number of items were not included in this investment figure, as there was no price certainty for them and nor can there be, for some, for the duration of the project. These include construction inflation, the impact of unforeseen events (e.g. Covid-19), statutory changes, the contractor’s right to claim for additional true costs in line with public works contract provisions, and implementation of the 2019 PwC report recommendations.
Additional costs in relation to the integration and transfer of services of the three hospitals to the new sites brings the total programme cost to €1.73bn. This includes investment in ICT, a new Electronic Health Record system, and the Children's Hospital Integration Programme, (the merging of three paediatric hospitals), including commissioning. Detailed planning around the commissioning, staff training and transfer of services to the new hospital is well advanced.
Definitive updates or outturn forecasts costs cannot be provided, as there is a live, commercially sensitive contract in place. Discussion of any costs outside of the approved budget, hypothetical or otherwise, could adversely affect the NPHDB’s commercial engagements, contractual relationships and consequently the project itself.
Whilst there is a focus on the capital project and its delivery, we must not lose sight of the fact that the NCH project will deliver world class facilities that will improve and prioritise medical outcomes for the nation’s sickest children, while bringing about transformational change to the delivery of healthcare for the children of Ireland for generations to come.