Oireachtas Joint and Select Committees

Thursday, 31 January 2019

Public Accounts Committee

National Paediatric Hospital Development Board: Financial Statements 2017

9:00 am

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail) | Oireachtas source

I will allow the Deputy to do so when I have finished speaking. No detailed design was completed for phase B, which accounts for 90% of the job - a sum of €800 million or €900 million - prior to the award of that contract. The only specific thing on which contractors could bid was the first 10% of the work, relating to underground works. Once the contractor had its foot in on the site, it had the contract for phase B, leaving the board with no bargaining position. It could have thrown the contractor off the site and not proceeded with the project but that would have been a Hobson's choice. The board has left the taxpayer with a Hobson's choice between proceeding with the project at a ransom price, if the contractor was minded to charge such, or not kicking the contractor off the site and starting again.

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