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National Children's Hospital Expenditure

Dáil Éireann Debate, Thursday - 10 October 2019

Thursday, 10 October 2019

Ceisteanna (23)

Pearse Doherty

Ceist:

23. Deputy Pearse Doherty asked the Minister for Health the expected completion date and projected cost of the national children’s hospital; and if he will make a statement on the matter. [39624/19]

Amharc ar fhreagra

Freagraí scríofa

I advised Government in December 2018 that the final cost of the design, build and equipment programme for which the National Paediatric Hospital Development Board is responsible was estimated to be €1,433 million.

There has been no change to this figure advised to Government.  

The PwC report makes clear that the Guaranteed Maximum Price established through the two-stage tender process does not provide a contractual ceiling on the project’s cost and significant residual risks remain. These include national construction inflation in excess of 4%, any changes in scope, legislative changes and the Sectoral Employment Order.  

The National Paediatric Hospital Development Board manages the project, actively monitoring the performance of the contract. It also has a focus on identifying and managing risks, preventing further cost increases to the greatest extent possible. It has, for example, a robust process in place for the assessment of claims by the Contractor in accordance with the Construction Contract. All claims are independently assessed and determined by the Employers Representative. Where there is a dispute on the validity of a claim, the Construction Contract sets out the dispute management process.  

In relation to timelines, there has been references to construction delays on the project. As the Chair of National Paediatric Hospital Development Board advised the Joint Committee on Health in June, some delays have arisen to date. However opportunities to mitigate these delays will be taken throughout the remainder of the project.  

The main Construction Contractor is currently reporting the project to be behind on certain elements of the construction, however, the National Paediatric Hospital Development Board has sought a revised programme timeline from the contractor setting out mitigation measures to bring construction back on line.

Substantial progress has already been made with the construction of the new children’s hospital and associated enabling works. The structural frame on the construction site is now reaching roof level in most advanced areas of the building, resulting in the building now being visible well above the hoarding.  Basement excavation, with the exception of the temporary road, is now complete and piling is also complete.

It is intended that the main hospital will be completed by late 2022 and following a period of commissioning, open to patients in 2023.

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