Children's hospital cost likely to pass €2bn amid tensions with contractor
A construction worker at the construction site of the new National Children's Hospital in Dublin. Picture: Brian Lawless/PA
The National Children's Hospital board is looking for significantly more capital funding as the project cost is expected to soar to as much as €2.2bn amid rising tensions with the main contractor.
A war of words has broken out over the level of progress on the build, with the National Paediatric Hospital Development Board (NPHDB) claiming just 27 of 3,000 rooms have been "deemed complete" and these have a large number of "snags".
However, construction company BAM has rejected this, saying: "We have offered up more than 600 rooms for design team inspection and this number is increasing by the week. This is in line with the number indicated in the most recent programme progress update."
It says it "categorically rejects" any allegations of under-performance and under-resourcing of the project, adding it is more than 85% complete to date.
Green Party leader Eamon Ryan warned the Government can’t afford to see a breakdown between BAM and the board as "we need to complete the hospital".
NDHDB chief executive David Gunning confirmed a request for additional capital funding has been made to the Government above and beyond the €1.433bn previously earmarked. That is expected to push the cost over the €2bn mark.
As well as seeking contingency for any additional claims payments, it is understood the board needs extra funding to pay for a spiralling legal bill as lawyers continue to contest all of the €756m of extra claims submitted by BAM.
“Our position is to defend that," Mr Gunning said, "and challenge each and every one of those claims.”
He refused to give an actual figure, but said the request for extra Government funds “sets out what we believe is the required money to deliver the project” and contains provisions for claims “to an extent”.
However, further significant cost increases are expected as it emerged that just 16 of the 2,175 claims submitted amount to €576m. That accounts for over three-quarters of the total value of claims.
In the Dáil, Taoiseach Leo Varadkar said the Government can't say how much more it will cost as it disputing "multiple claims" but added it will be "significantly in excess of €1.433 billion".
Frustrated members of the Health Committee pressed Mr Gunning on the estimated completion date for the hospital, which is now considerably over time and over budget.
At the committee, the NPHDB made a slew of claims about BAM’s work which the contractor later strongly refuted.
The board claims BAM is “not providing sufficient resources to deliver the hospital” as the contractor has only achieved “67% of its planned output in the last 12 months”, falling as low as 34% at certain times.
The NPDHB had believed BAM would provide a “contract-compliant programme” by last Friday setting out timelines for completion. This is now expected next week.
Mr Gunning said it is critical for the board to have clarity on the timeline for completion.
BAM later insisted that the project is "fully resourced" for the planned work scope.
"Any suggestion that BAM is deliberately not committing adequate resources to the project or is in any way slowing down delivery of the hospital is untrue."
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