Brian Stanley (Laois-Offaly, Sinn Fein)
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I am happy to do that.

The next item is No. 855, from Mr. David Gunning, chief officer, National Paediatric Hospital Development Board, dated 29 October 2021, providing information requested by the committee in regard to the new children's hospital, including the impact of construction inflation costs, which we discussed briefly some time ago; the number of design changes since the beginning of the project; lessons learned from the planning phase; and the PwC independent review on the escalation of costs. Detailed information is provided in regard to the contractual provisions regarding inflation. Essentially, the new children’s hospital construction contract permits the contractor to recover the cost of tender inflation in excess of 4%, and this provision came into effect in August 2019. The inflation payment from the State to the main contractor, including VAT, for the period August to December 2019 was €1.6 million, and a further €1.5 million was paid out for the period of January to December 2020.

On the lessons learned from the planning phase of the project in terms of the procurement process, the contract and related controls, the chief officer states that the form of contract used was the standard Office of Government Procurement public works contract for employer design, with some elements of the works contract modified to meet the two-stage procurement requirements of the project. He also states that the process was overseen by a third party. The chief officer goes on to state that, in regard to lessons learned from the procurement process and the public works contract, the PwC report sets out two recommendations regarding future large capital projects for which Government Departments are responsible. No information is provided on whether the procurement process used was, in hindsight, the most appropriate to deliver value for money for the State, or whether any lessons have been learned from a project for which the costs have significantly escalated, and one for which, despite the best efforts of this committee, we do not know the final cost or date of completion.

This has been flagged by Deputies Catherine Murphy and Imelda Munster, and by myself. I call Deputy Murphy.