Oireachtas Joint and Select Committees

Wednesday, 23 January 2019

Joint Oireachtas Committee on Health

National Children's Hospital: Discussion (Resumed)

Ms Tracey Conroy:

We were clear with the Government in April 2017 as to the details of what the two-stage process meant and entailed. At that stage, we were operating on the basis of what would be required for phase A. We also gave a commitment to come back to the Government in the context of approval for phase B, which is what we did do in December 2018. The best way to describe it is that we were operating within indicative parameters.

To recap in terms of the benefits of a two-stage procurement process, the first part is the full participation of suitable main contractors and the special subcontractors in the tendering process. The build board was absolutely clear that this was really essential. That is about the development of a collaborative tendering process.

There was some discussion at the committee last week about the availability and suitability of contractors for a project of this complexity. It became evident very early in this process that only two Irish main contractors would have had anything near the kind of capacity to undertake this project. Even then, they would have challenges in resourcing and undertaking it.

To achieve competition it was essential for the contract that the tendering strategy and the terms and conditions of the contract would encourage international contracting interest. That required the development of bespoke tendering and contract conditions, which is what was formulated by the build board, after lengthy consultation and engagement with the Government's contracts committee.

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