Just 27 rooms out of 3,000 at National Children’s Hospital 'deemed complete'

The National Paediatric Hospital Development Board (NPHDB) CEO David Gunning said that BAM has 'not issued a contract compliant programme', adding 'this is unacceptable'. Picture: Sasko Lazarov / RollingNews.ie

The company contracted to develop the new National Children’s Hospital has been accused of submitting “grossly inflated claims” and no firm date can be given on when the hospital will open, an Oireachtas committee has heard.

The committee also heard that just 27 rooms have been "deemed complete" out of 3,000 based on BAM's commitments. 

The National Paediatric Hospital Development Board (NPHDB) CEO David Gunning said that BAM has “not issued a contract compliant programme”, adding “this is unacceptable”. 

Until that programme is delivered, Mr Gunning said no indicative dates could be given on the completion of the hospital.

He said the company is “not meeting its contractual obligations”. The NPHDB has also withheld funding from BAM 15% of the payments for works completed due to BAM and claimed that it is providing sufficient resources to deliver the hospital.

Furthermore, the NPHDB has submitted to Government a request for more capital funding beyond the €1.433bn in order to meet the expected total cost of the hospital.

Mr Gunning said the final figure will “absolutely” go beyond that €1.433bn.

He said that it’s “incredible” that the claims being made by the contractor is “heading towards the actual contract value”.

He told TDs and Senators on the Oireachtas Health Committee that €756m worth of claims had been submitted by the contractor against an original contracted sum of €910m.

“There’s clearly a strategy the contractor is following,” he said. “Our position is to defend that and challenge each and every one of those claims.” 

Mr Gunning also confirmed, under questioning from Green Party TD Neasa Hourgian, that there was nothing precluding BAM from submitting a tender for the construction of a family accommodation unit set to be built on the site.

That’s expected to be built by early-mid 2025. Ms Hourigan asked if this would be in parallel with the opening of the hospital to which Mr Gunning could not confirm.

In a strong opening statement, he had told the Oireachtas Health Committee that the NPHDB has told BAM it has “issued an Employer Claim to withhold 15% of the payments for works completed due to BAM”.

“BAM is not providing sufficient resources to deliver the hospital. This continued lack of resourcing together with poor project execution may lead to further slippage of the substantial completion date if this continues,” Mr Gunning told TDs and Senators.

“To illustrate this point, BAM achieved 67% of its planned output in the last 12 months — this output level fell as low as 34% at certain times during this period. To further illustrate this point, BAMs monthly billing currently should approximate to €15m however, in the last number of months, they are below €10m.” 

He said that, based on BAM’s commitments, 3,000 rooms should have been completed by now but only 27 have been “deemed complete”.

Mr Gunning said the contractor continues to submit a large volume of claims and, based on the delay to achieve the completion date, the NPHDB has submited a capital request to the HSE to ensure there are “sufficient funds to bring the project to substantial completion”.

“We know from what it has stated that BAM does not want the children and young people of Ireland to have to wait for the hospital for longer than is necessary,” he added. “I would urge BAM to consider its behaviour and overall approach to delivering this project. The kind of behaviour that has been experienced simply can’t continue.”