Oireachtas Joint and Select Committees
Thursday, 19 October 2023
Public Accounts Committee
Children’s Health Ireland and National Paediatric Hospital Development Board: Discussion
9:30 am
Mr. David Gunning:
Deputy Catherine Murphy mentioned sanctions. There are three sanctions in this contract. There is a right to withhold 15% in the situation where the project programme is not provided. There are so-called liquidated damages.
There are three instances in which we can apply liquidated damages: sectional completion of the family unit; sectional completion of the ICT rooms, which are called something different in the contract; and the entirety of the NCH works. There are two sectional completions and then the project itself. The other sanction is the extreme sanction of termination of the contract. We have three sanctions within the public works contract. Those are the formal sanctions available to the development board.