Mr. David Gunning:

Thank you, Chairman. I hope everyone can all hear me. My thanks to the committee for inviting us today via video link to provide an update on the construction progress of the children's hospital project.

I was appointed as chief officer in September 2019 and I am also the Accounting Officer for the National Paediatric Hospital Development Board. My colleague, Phelim Devine, is here. He was appointed project director in October 2019.

We already submitted an opening statement but in the interests of time I propose to simply share some of key points. Mr. Devine will deal with several photographs to give members a more tangible view of the progress being made on the site.

The first point to which I wish to draw people's attention relates to the programme timeline and project delays. The Tallaght outpatient and urgent care centre project is approximately seven months behind schedule. The current estimate for substantial completion is September 2021.

Approximately one year ago, the last time we were before the Joint Committee on Health, we advised the committee that the main contractor on the national children's hospital project at the St. James's campus was behind schedule on the construction works. In March this year, when the main contractor closed the site as a result of the Covid-19 restrictions, the delay on the national children's hospital project had increased to approximately six months. The Government's Covid-19 restrictions on construction lasted for a period of seven weeks. Construction work was permitted to recommence from 18 May. However, despite our ongoing efforts and the fact that the vast majority of construction sites throughout the country opened when restrictions were lifted, the contractor did not reopen the new children's hospital construction site until 13 July, leading to a further seven weeks of delay.

I wish to add that the contractor has not provided a valid works programme for the NCH project that is in line with its contractual obligations. The development board is dealing with this via the mechanisms allowed to us through the contract. The primary mechanism is that we are withholding 15% of moneys certified for payment every month to the contractor.

I will comment on costs and cost projections. While there has been a delay as regards execution, the contractor has been extremely assertive in terms of claims for additional payments. Where the contractor is entitled to costs under the contract, the development board has been paying and will continue to pay the contractor. However, where we believe there is no entitlement, we are using all mechanisms available in the contract to defend these claims and protect the public purse.

The National Paediatric Hospital Development Board executive is actively interrogating the programmes provided by the contractor and evaluating all current and potential cost pressures on the project. This work has been our highest priority in recent months and continues to be. The issues around the programme, timeline and claims have been highlighted on an ongoing basis to our stakeholders in the children's hospital project and the programme board, which oversees the project.

Once this current review is completed it will shared, first, with our board and then provided to the project oversight group. This morning, we will endeavour to answer all questions. However, members will understand some matters are before the court and some matters may be commercially sensitive, may prejudice our possibilities going forward or negatively impact our ability to defend the public purse in the future.

I will hand over to Mr. Phelim Devine who will talk the committee through a visual update on the project.