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National Children’s Hospital: Surging costs linked to ‘build-as-you-go’ planning strategy

Just 27 rooms at the National Children's Hospital have been completed out of a target of 3,000
Jack Quann
Jack Quann

08.31 13 Jul 2023


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National Children’s Hospital:...

National Children’s Hospital: Surging costs linked to ‘build-as-you-go’ planning strategy

Jack Quann
Jack Quann

08.31 13 Jul 2023


Share this article


The surging cost of the National Children’s Hospital can be traced back to the decision to go to tender with no clear plan in place, according to a public procurement expert.

Professor Paul Davis told Newstalk Breakfast this morning that the biggest construction project in the history of the State is lacking in leadership.

He said the construction company building the hospital is not responsible for the design of the project, which he said is constantly changing, leading to increased costs.

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He was speaking after an Oireachtas committee heard the cost of the project could top €2 billion.

Just 27 rooms have been completed out of a target of 3,000.

The board of the hospital told the Oireachtas Health Committee on Wednesday the contractor for the build, BAM, has failed to provide a progress report since February.

The interior of the new National Children's Hospital under construction at the St James's site in November 2022. The interior of the new National Children's Hospital under construction at the St James's site in November 2022. Picture by: Sam Boal/Rollingnews.ie

Dr Davis said it has been a 'build-as-you-go' approach.

"[BAM] stated very clearly they are not the programme management team, they are the builders," he said.

"They are not responsible for the design of the hospital, and that's the issue - there was no design of the hospital at the start of this tender.

"It's been a build-as-you-go and a test-as-you-go".

17/11/2022. New Childrens Hospital - St James Site. Pictured the Interior of the new Children's Hospital under construction at the St James Hospital site this afternoon. Photo: Sam Boal/Rollingnews.ie

Dr Davis said he believes the project can still be salvaged.

"I don't think the horse has bolted completely, but I do think that the structure that's currently in place with the board almost taking responsibility … they don't have the competencies," he said.

"It seems to be lacking the project management skills, the basic project management skills, to get it over the line.

"I think this fallout between BAM, the construction and the board is a problem that needs to go to mediation as quickly as possible so that there's some sort of conciliation and movement on it.

"It would not be unusual to have disputes; the problem with the level of disputes here is if you keep making changes, the disputes are going to keep coming".

'No finalised design'

Dr Davis said the project was a rushed political decision.

"If you started building a house without an overall picture of what you're going to build, you'd keep adding things to it - and that's what's happening now," he said.

"It was a rushed - probably - political decision going back when I think about it.

"But if I ignore that side of it there was no business case in place, there was no finalised design for the hospital in place.

"So, the bidder coming in put in a bid on the basis of, probably, a rough set of drawings - but there was no details.

"What we have had is numerous changes to the design over the years.

"We just keep stretching and stretching and stretching," he added.

The interior of the new National Children's Hospital under construction at the St James's site in November 2022. Picture by: Sam Boal/Rollingnews.ie

In a statement, the National Paediatric Hospital Development Board said: "There has been no material change to the design of the new children’s hospital since the commencement of Phase B (above ground works) of construction.

"The contract clearly sets out that design evolves through construction to allow for the integration of BAM’s procured systems and products.

"This is normal on every public works contract and is a collaborative process.

"It is project delivery - which is the responsibility of BAM - and not design that is impacting on the substantial completion date of the new children’s hospital."

BAM has said it "categorically rejects any allegations of under-performance and under-resourcing on the New Children's Hospital project."

"The firm and our work on the project is fully resourced for the planned work scope.

"Any suggestion that BAM is deliberately not committing adequate resources to the project or is in any way slowing down delivery of the hospital is untrue," it added.

Main image: File photo shows construction work on the National Children's Hospital in Dublin in July 2020. Picture by: Sasko Lazarov / Rollingnews.ie

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