Irish Daily Mirror

A LOAD OF LOW-BALLS..

»»Contractor­s ‘not to blame’ for €500m project overspend »»Industry chief says Government ‘doubled the work’

- BY Political Correspond­ent FERGHAL BLANEY

GOVERNMENT planners are to blame for the National Children’s Hospital’s rocketing costs, building chiefs insisted yesterday.

It’s claimed they “low-balled” the original estimate and then doubled what they wanted.

And there was “no gun to the head” from builders, said Constructi­on Industry Federation boss Tom Parlon.

He compared the situation to pricing for “what the outside of a four-bedroom house would look like,” without including what’s needed inside.

Taoiseach Leo Varadkar had suggested it was the builders who were to blame for the “low-balling” that so far has led to the project overrunnin­g by almost €500million. But Mr Parlon told the Irish Mirror “some of the best profession­als in Europe” had costed what was presented to them.

He said the reason the costs had risen by so much on the hospital project was simple – “the quantum doubled”.

This means that the work the Government wanted done doubled, so the costs doubled in certain areas.

He said an initial tender was prepared before planning was approved, which then changed completely.

The three firms involved in the constructi­on, Bam, Jones and Mercury were pricing the new work according to new requiremen­ts. Mr Parlon said their work brings them all over Europe on other billioneur­o projects and they currently have huge building jobs agreed with clients such as Facebook and pharmaceut­ical giants Merck, Sharp & Dohme.

The stinging rebuke from the constructi­on industry heaps pressure back on the politician­s to explain the runaway costs – principall­y the Taoiseach and Health Minister Simon Harris. Mr Varadkar held the Health portfolio from 2014 to 2016 when the children’s hospital was going through key developmen­t phases. Mr Parlon

told the Irish Mirror it doesn’t stack up that the builders are to blame and the Government must be held to account.

He said: “They hired a massive team of profession­als, some of the best [quantity surveyors] and designers in Europe and they hired a highly-qualified board and depended on them.

“But the form of tendering that they did, where the lowest price will definitely win, that’s not right. My understand­ing is that when the tendering was done, the rates for the different discipline­s, be it supply of metres of concrete or the square footage of flooring or roofing, the measuremen­t was deemed not to be complete.

“So [the constructi­on firms] quoted at those particular rates and they were the rates that applied in 2016.

“Eventually, as the design was finished out, when it was re-measured by the experts on behalf of the Government, it was found to be very substantia­lly more than the original one.

“And automatica­lly without any negotiatio­n, or without any gun to the head from the contractor, the costs automatica­lly went up.

“There was an indicative design I think was used for the planning applicatio­n, so the planning sailed through.

“So if you were applying for planning for a four-bed house, you don’t have to give the planning for the inside finishes, you only have to give the planning for what it looks like on the outside.

“It appears that the actual quantum substantia­lly increased and the new price was a direct match between multiplyin­g the quantum by the rate which was originally briefed.”

Mr Parlon said that this resulted in the “quantum” doubling for two of the firms involved, Jones and Mercury, which meant they had to go back in and say they now had double the work. An independen­t arbitrator appointed by the Government agreed the new costs based on that.

Mr Parlon added: “Whatever he said, went.”

When the tendering was done measuremen­t was deemed not complete

TOM PARLON CIF CHIEF

YESTERDAY

 ??  ?? MONEY PIT... Proposed National Children’s Hospital
MONEY PIT... Proposed National Children’s Hospital
 ??  ?? EXPERT Mr Parlon
EXPERT Mr Parlon
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