Friday 22 March 2019

Report into spiralling cost of hospital delayed

Construction

“PwC has recently advised that the report is now expected to be completed by early April,” said Health Minister Simon Harris
“PwC has recently advised that the report is now expected to be completed by early April,” said Health Minister Simon Harris
Eilish O'Regan

Eilish O'Regan

The external report examining the construction cost escalation for the new National Children's Hospital will be delayed, it emerged yesterday.

The report by PricewaterhouseCoopers (PwC) was due at the end of this month but will not be finalised until April.

"PwC has recently advised that the report is now expected to be completed by early April," said Health Minister Simon Harris.

Earlier this week, Fred Barry, the recently installed chair of the board overseeing the construction of the hospital, warned of the challenge to prevent the construction cost from rising further due to pressures like construction inflation.

The minister, in a response to Fianna Fáil TD Marc MacSharry, said the PwC review into the cost escalation associated with the new children's hospital construction will also comment on the major residual risks and "the robustness and completeness of the current forecasts".

He said that where possible it will quantify those risks which could push up the cost beyond €1.4bn.

BAM, the builders of the hospital, can make a claim for additional costs if construction inflation exceeds 4pc per year from July 2019.

PwC has sent some of its experts from London to carry out the analysis of the cost of the National Children's Hospital, which has seen the construction price rise by €450m since April 2017.

Irish Independent

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