Dáil Éireann Debate, Tuesday - 29 January 2019
193. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if his Department was informed by the Department of Health that the normal procurement process for State projects was changed to a two-stage process in the case of the national children’s hospital; if his attention has been drawn to the possible escalation of costs arising from the two-stage development process; and if he will make a statement on the matter. [4317/19]
Amharc ar fhreagraThe Department of Health is responsible for the management of the New Children’s Hospital project including budget management, project governance, ensuring compliance with procurement rules and project appraisal in accordance with the Public Spending Code.
Government policy (through Circular 33/06) requires the use of the Capital Works Management Framework, CWMF, on all projects delivered under the Exchequer-funded element of the public capital programme. It is possible for public bodies to seek a derogation from the use of the standard forms of contract from the Government Contracts Committee for Construction, GCCC. In May 2014 the National Paediatric Hospital Development Board recommended this approach and secured a derogation. It is important to note that a derogation, where agreed, does not approve the approach or strategy of the contracting authority, but simply acknowledges that the circumstances are such as to warrant a different approach than the standard.
The budget oversight unit in the Department of Public Expenditure and Reform was never informed that a two-stage procurement process could increase costs beyond the Government approved allocation for the project. In November 2018, the capital cost increase of €450 million was brought to the Minister for Public Expenditure and Reform’s attention.
