Tuesday, 26 February 2019
Department of Health
National Children's Hospital
348. To ask the Minister for Health the cost of the first contract awarded to a company (details supplied) for the national children’s hospital; the variation of final cost from original tender; if there were changes to the design of the initial contract; if so, if these changes were carried out during construction stage of the initial contract; and if he will make a statement on the matter. [9356/19]
349. To ask the Minister for Health if there were changes to the detail design of the national children’s hospital after the initial contract was signed and construction commenced on the site; if such changes had an impact on the construction costs associated with the first contract awarded to a company (details supplied); if there were material changes to the foundations and underground car park layout and other associated site works; and if he will make a statement on the matter. [9357/19]
I propose to take Questions Nos. 348 and 349 together.
The contract for the new children's hospital project is subject to a two-stage process. Stage 1 consists of a full tender and contract for Phase A works (below ground, including basement works) on the basis of a detailed design, and a tender for Phase B works (the main above ground works) on the basis of a preliminary 1st stage design with an approximate and remeasurable bill of quantities reflecting the preliminary 1st stage design. Stage 2 consists of the completion of the detailed design for the above ground Phase B works, with a full bill of quantities priced at the Stage 1 preliminary design tendered rates. This approach allowed the early phases of work to commence on site while also allowing for the detail of later phases to be finalised and agreed, resulting in the determination of a Guaranteed Maximum Price prior to the instruction to proceed with the main Phase B works.
Contract tenders were received from the main contractor, mechanical and electrical installation contractors and lift contractors in October 2016. The most competitive tender sum, excluding VAT, was €637m in total, of which €432m applied to the main contractor. Following completion of the Guaranteed Maximum Price Process (GMP) in November 2018, the total adjusted GMP construction budget is €890m, of which €556m applies to the main contractor.
As the particular details regarding material changes to the foundations and underground car park layout and other associated site works are operational matters, I have asked the National Paediatric Hospital Development Board to reply to you directly, as soon as possible.