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 explain the process again. First, we did deep analysis in terms of ultimately deciding that the two-stage process was appropriate for this project. One thing that is certain and that has been learned in Ireland, the UK and internationally is that the model of traditional tendering where the client designs it without any involvement with contractors has been proven to fail repeatedly because the contractors invariably bid at or below cost and try to exploit the opportunities if there is a looseness in the contract documentation. It is a very competitive marketplace. With the two-stage tender, one works on the basis of a preliminary design, the contractor then works with the design team to develop that to completeness and the contractor takes the risk from that day forward. There is any amount of literature about it that we are happy to share with the committee.

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