‘Back us to build NCH or sack us’
Giant BAM says if Government wants to opt out, it will co-operate
THE main contractor building the National Children’s Hospital offered to quit the controversial project yesterday.
And some Opposition TDs said it was now time for the Government to take stock of the €1.7billion project and even call a halt to building works.
THE main contractor involved in the construction of the new children’s hospital effectively challenged the Government to ‘back it or sack it’ as the saga took an unexpected twist yesterday.
And BAM Ireland also offered to quit its contract if requested to do so and allow a rival firm to take up the work.
The firm said it had written to the Taoiseach asking to clarify his comments in the Dáil on Tuesday that the State has fallen victim to building contractors ‘low-balling’ – which is submitting artificially low bids, only to increase them after they have secured the work.
While Leo Varadkar did not name any individual companies, the point that he made the comments during a debate on the ballooning cost of the hospital prompted the construction firm to ask him yesterday to explain he wasn’t referring to it. And following BAM’s offer to quit its contract, some Opposition TDs said it was time to take stock of the €1.7billion project and even call a halt to building works.
BAM Ireland’s CEO, Theo Cullinane, remarked on the ongoing saga yesterday: ‘In recent weeks there have been many adverse comments in relation to the new children’s hospital.
‘BAM wishes to confirm that it did not benefit inappropriately from the tender process and much of the commentary is based on incomplete and inaccurate information. BAM will fully engage with PwC to ensure all relevant facts are disclosed.’
And Mr Cullinane put it up to the Government by stating: ‘In response to the Taoiseach’s comments in the Dáil on Tuesday, February 12 last, BAM has written to the Taoiseach directly to respectfully request him to clarify that he was not referring to BAM in the Dáil and that BAM has made and continues to make a significant contribution to Ireland, including in the context of the new children’s hospital, where BAM is in full compliance with all its obligations.
‘BAM wishes to advise the hospital board that if it would prefer to opt out of this contract and procure the work in some other way, then BAM will co-operate with them to facilitate this option.’
A Government spokesman yesterday responded: ‘The Taoiseach did not reference any specific company in the Dáil. The Government is not satisfied with several aspects of how the new National Children’s Hospital project has been delivered. There is understandable public concern about the matter. For this reason, PwC has been commissioned to carry out an independent examination. The Taoiseach hopes and trusts that all parties and contractors will co-operate fully with it.’
The Government-appointed board overseeing the troubled project later said in a statement that it is ‘committed to delivering’ the hospital. ‘We have nothing further to add at this time,’ it added.
The move by BAM came 24 hours after TD and former builder Mick Wallace claimed in the Dáil that re-tendering even now could save the taxpayer €500million.
However, Tánaiste Simon Coveney claimed that all the Government’s advice was that there would not be any significant saving in putting phase two of the construction up to new bids.
The initial cost was projected to be €650million, before that ballooned to €1.4billion, with IT and other costs adding a further €300million. Government figures have failed to rule out that the cost could increase further.
Róisín Shortall of the Social Democrats said the Government should seize the opportunity to take stock of the hospital project and to carry out a detailed costing of all options. ‘This must include calling a halt to construction on the St James’s site and considering moving to a different site in order to guarantee the co-location of the children’s hospital with a maternity hospital,’ Ms Shortall said. ‘This is a critical issue and was originally promised as part of this project. Instead of doubling down on a succession of bad decisions, it’s time for the Taoiseach, the Minister for Health and the Minister for Finance to produce full costings on all options.
‘There’s no point in throwing good money after bad. We need to see substantially reduced costs while at the same time ensuring the highest clinical standards for patients,’ Ms Shortall said.
Sinn Féin agreed that the BAM letter potentially changed the game. ‘The Taoiseach and a new Minister for Health need to finally take control of this situation,’ said Louise O’Reilly, party health spokeswoman, with Sinn Féin having put forward a motion of no confidence in Simon Harris to be taken next week.
They should immediately call an emergency meeting with BAM, the design team and the National Paediatric Hospital Development Board, she said. ‘There must be a specific focus on cost recovery and how the costs can be lowered and controlled. Savings must be made on the mammoth cost overrun. All options must be kept on the table. Furthermore, the PwC report must also assess the letter sent by BAM including an analysis of its offer and contents,’ Ms O’Reilly added.
BAM Ireland had a turnover of €465million in 2017, the year in which it began construction on the St James’s Hospital site, which was an increase of 29% on the previous year.
It is also at work on the hospital’s satellite sites in Blanchardstown and Tallaght, forming the largest infrastructure project in the history of the State.
It has recently built One Microsoft Place in Leopardstown and courthouses at Letterkenny and Drogheda as part of a public– private partnership.
BAM has seen its order book increase strongly in recent years. Its projects include the N25 New Ross bypass and the M11 Gorey to Enniscorthy motorway.
‘Many adverse comments’ ‘Calling a halt to the construction’