Construction cost claims for new children's hospital to be reviewed in High Court

The Oireachtas Health Committee heard the Department of Health does not have a 'working estimate' for the total cost of all claims.

The main contractor for the new children’s hospital has lodged 900 claims in relation to the project, and agreement on just nine of those came to €2.5m, the Oireachtas Health Committee has heard.

It also emerged during a heated session the Department of Health does not have a “working estimate” for the total cost of all claims.

National Paediatric Hospital Development Board (NPHDB) chief officer David Gunning said a moratorium on dealing with claims lodged by BAM has now been extended to July. He insisted, in the face of robust questioning, this was a good thing as it ensures construction continues.

Answering questions from Sinn Féin health spokesperson David Cullinane, Mr Gunning said six claims were going to the High Court for resolution. He said many of the 900 claims are legitimate but others are “somewhat over and above”.

Mr Gunning previously gave the committee an estimate of €300m when there were just 600 claims.

Mr Gunning and the Department of Health’s acting director of health infrastructure Fiona Prendergast argued overall costs cannot be discussed.

Social Democrat co-leader Róisín Shortall asked if the department at least has a private working estimate of costs.

An interior concept image of the new National Children's Hospital

But Ms Prendergast said: “Not at this time, deputy, given the uncertainties that are out there in relation to Covid, in relation to Brexit and the fact that we still have two years to run on the project.” 

We are still working to the €1.433bn as much as we are aware. Because it is going to take longer, it is going to cost more.” 

Mr Gunning said the costs were “part of the live contract that exists between the NPHDB and BAM" and, as such, he was not in a position to elaborate further as it could "compromise our ability to negotiate on behalf of the State at a later date”. 

He said the original construction end date was August 2022, but now the estimate for “substantial construction completion” is December 2023, and he hopes for the internal fit-out to be completed by the second quarter of 2024.

Senator Martin Conway described the budget as “an open chequebook”. He asked Mr Gunning if he expects the minimum estimate of €1.43bn will be breached.

Mr Gunning said it was “a racing certainty, it will be more”.

The committee also heard of a cost-overrun of €1m at the satellite unit in Tallaght from NPHDB project director Phelim Devine.