Written answers

Tuesday, 19 February 2019

Department of Health

National Children's Hospital Expenditure

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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404. To ask the Minister for Health the provision on construction tender inflation in the contract regarding the guaranteed maximum price of €1.433 billion for the construction of the national children's hospital; the agreed method of measuring construction tender inflation under the contract; the extra amount that must be paid for each 1% that construction tender inflation exceeds the agreed threshold of 4%; and if he will make a statement on the matter. [8153/19]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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There are clearly defined procedures around the recovery of excessive tender inflation in relation to the build cost for this project. The Guaranteed Maximum Price (GMP) procurement process agreed with the contractors requires the contractors to take all risk for quantities following completion of the GMP process, and, as per the contract, limits their recovery of additional costs incurred by them to clearly defined scope changes and in excess of 4% inflation (as per the average of three published tender price indices) which may occur post July 2019. In relation to the extra amount that must be paid for each 1% that construction tender inflation exceeds the agreed threshold of 4%, I have asked the National Paediatric Hospital Development Board to reply to you direct.

The independent review underway into the cost escalation associated with the new children's hospital construction project, as part of its Terms of Reference, will comment on the major residual risks and the robustness/completeness of the current forecasts and, where possible, quantify those risks contractually excluded from the GMP/adjusted contract sum. This review is expected to be completed by the end of March 2019.

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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408. To ask the Minister for Health if there will be a delay in the delivery of a number of hospital builds (details supplied) due to the overspend on the national children’s hospital; and if he will make a statement on the matter. [8159/19]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The new children’s hospital is a vital and much needed project. The Government has examined the funding pressures associated with delivering this important project and has made adjustments to capital allocations to ensure that the new children’s hospital will be delivered.

My Department and the Health Service Executive are currently engaged in a process to finalise the HSE Capital Plan for 2019.

The HSE Capital Plan will determine the projects that can progress in 2019 and beyond having regard to the total available capital funding and the relevant priority of each project. All Health capital projects, currently at various stages of development, such as the projects referred to in Roscommon and Galway, are included as part of this process.

Once the HSE has finalised its Capital Plan for 2019, it will then be submitted to me for consideration.

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