It follows revelations that the latest promised February 2025 date would not be met by the builders BAM.
The National Paediatric Hospital Development Board (NDHDB) is expected to reveal a proposed new date put forward by the builders when they appear before the Oireachtas health committee on Wednesday.
Chief executive David Gunning is expected to say that in the last four years, the main contractor BAM, has shifted its substantial completion date 14 times.
“In the last 12 months alone, BAM has shifted the substantial completion date four times, pushing out the completion date by a total of 8 months.
“BAM is currently communicating June 2025 as its anticipated substantial completion date.
“In the absence of a written, contractually compliant, realistic and resource-loaded programme the NPHDB cannot and will not simply accept BAM’s ongoing deferral dates.
“The employer’s representative, who is the independent contractor administrator, has not accepted this latest update, and has requested that BAM submit a revised baseline programme, in accordance with the requirements in the contract as the hospital is approaching the final stages.”
Mr Gunning will point out that a baseline programme is a critical contractual requirement, fundamental to any construction project, because it provides a clear approach and timeline for works underway up to substantial completion allowing for work to happen in an efficient and effective manner. “The absence of a baseline programme on any construction project, especially one of the scale of the new children’s hospital is completely unacceptable”.
He will say that BAM’s continued failure to provide a compliant baseline programme, and its shifting of dates, is not acceptable to the NPHDB “nor to our colleagues in Children’s Health Ireland”.
Mr Gunning will say that it “shows a complete disregard for internationally recognised professional processes and contractual procedures. The approach being taken by BAM also shows complete disregard for sick children and young people and their families – as well as the dedicated and excellent staff in Children’s Health Ireland”.
Mr Gunning is due to say that the biggest factors contributing to the continued delay to completion are “BAM’s continued insistence on offering rooms and areas within the hospital as complete when they are still incomplete”.
He will also cite “BAM’s continued failure to manage the project execution and BAM’s continued unwillingness to resource the project appropriately. This is why BAM is consistently failing to deliver on its planned commitments month on month”.
Following revelations over the weekend that Health Minister Stephen Donnelly had written to Government party leaders strongly criticising the construction company BAM has strongly rejected the accusations.
BAM responded to his allegations saying they are “misleading, ill-informed and incorrect”.
As of the end of August, the total amount spent on the project by the NPHDB is €1,478,606,163 including VAT.
Mr Gunning will accuse BAM of not fulfilling its contractual obligations and consequently, said it will withhold 15pc of certified payments due to BAM. This is a lever available to the NPHDB within the contract and we have initiated it again.
The NPHDB previously withheld 15pc of monies due to BAM between the period of May 2020 and February 2021, when BAM’s programme was deemed not be compliant with its obligations under the Contract. The NPHDB also threatened to withhold 15pc in 2023, but this was not actioned as BAM provided a Baseline Programme.
Meanwhile, BAM continues to submit large volumes of claims, including duplication and triplication of claimed time and value, he will say. The total amount in claims is €748m.
BAM in its statement said it reviewed the Minister’s letter and rejects in the strongest terms the “misleading, ill-informed and incorrect allegations” levelled against it. It in particular rejects the “irresponsible claims by the Minister that BAM is in any way seeking to ‘extract as much money from the Irish taxpayer as possible’ and ‘is holding the state to ransom’.”
“These claims have absolutely no basis in fact, nor are they helpful to ensuring this complex and vital project is completed at the earliest possible juncture,” it said.
“BAM has complied at all stages with all requirements and provisions set out in the contract and has not been sanctioned by the NPHDB. Any application by the Board to withhold money will be assessed by the Employer’s Representative and the Standing Conciliator. The Board’s previous attempt to take this action, alluded to by the Minister, was overturned by an independent adjudicator.”
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