Oireachtas Joint and Select Committees

Wednesday, 16 January 2019

Joint Oireachtas Committee on Health

National Children’s Hospital: National Paediatric Hospital Development Board

Mr. Tom Costello:

I will deal quickly with them and perhaps we can revert to the committee on the issue if necessary. As part of the exercise we have done, and ultimately the report to the HSE, we have learned lessons. As always, there were positives as well as negatives, and we identified two in my statement. I will go through them a little. On cost reductions, because we are in an inflationary cycle, the tenders received were higher than the pre-tender estimates. In those cases, people invariably look for cost reductions. Again, in hindsight, we are referring to looking for a cost reduction at a time when prices were still inflating at 6% or 7%. A cost reduction might also be an alternative material. While in that inflationary cycle, however, there is no guarantee that the cost reduction will come to anything and eventually one may end up back where one started. That was a lesson learned in the cycle. Those things cannot necessarily be predicted. They were all done with good intentions and the contractors bought into it, but when we interrogated deliverability over the months, we found it was not possible.

The other question was on reporting. We were meeting regularly. I will ask Mr. Pollock to speak on that.

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