We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
A potential rise of 40% costs across complex building sites such as the National Children's Hospital is an astronomical figure - @DuncanSmithTD pic.twitter.com/SDxakOio68
— The Labour Party (@labour) May 19, 2020
THE COST OF the National Children’s Hospital could rise by as much as 40% due to the fallout from the coronavirus crisis, the Oireachtas Special Committee on Covid-19 Response has been told.
In the afternoon session, Construction Industry Federation (CIF) general secretary Tom Parlon said he’d been informed by “industry figures” that the cost of the large projects could rise significantly.
Parlon also added that with projects already set back some time after sites closed due to Covid-19, restrictions in place that mean less employees can work on a site could see them further delayed and see costs rise.
Construction at the new National Children’s Hospital at St James’ ceased on 31 March, following criticism of BAM for continuing construction on the site.
The project has already been mired in controversy over spiralling costs – the final bill before the Covid-19 crisis was expected to be over €1.7 billion, an increase of €450 million since the government first backed the project in April 2017.
Labour TD Duncan Smith asked Parlon specifically at the Oireachtas committee today about the children’s hospital, after he had indicated some construction costs could rise due to Covid-19.
Parlon said that significantly less workers would be able to work on larger construction sites, particularly under the early phases of the economy re-opening. He had heard of one site which had 1,800 workers and was now reduced to 500-600 due to health guidelines.
“The industry are building data centres and highly sophisticated pharma plants so the industry has suggested it could be as much as 40% extra cost while the very strict regime is in place,” he said.
Specifically on the children’s hospital, Smith said that for the cost to rise by 40% – adding almost €700 million more to the project – would be “astronomical”.
Fianna Fáil TD John McGuinness said such a situation could create a “very serious legal quagmire” and it was important to try to ensure the taxpayer doesn’t end up paying susbtantially more.
CIF’s Parlon also said that construction projects could end up costing in the region of 5-10% extra, and said he had heard of one housebuilder who has said the additional costs could see an extra €10,000 on the cost of a home.
He said the construction industry was taking it’s responsibility seriously when it comes to preventing the spread of the virus and that there wasn’t a “big bang” when construction got back under way yesterday.
“It will take months for the industry to reach previous output levels,” he said.
To embed this post, copy the code below on your site
This is ridiculous.
@Dec: Comical….I just watched a documentary on a massive state of the art complex built in Singapore for less than a billion….it was absolutely huge. Look we deserve every drop of this because we vote for it every election, we are a dump as F race of people let’s face it.
@Peter Hughes: dumb
@Peter Hughes: speak for yourself dumbo.
@John fitzpatrick: Yeah a FFG head…the type that has this country the mess it is.
@Peter Hughes: speak for yourself… I haven’t given FF or FG a vote in almost 2 decades… Once bitten twice shy
@Dec: should never have got off the ground. Even the location is ridiculous.
@Dec: why should costs go up? The contract is signed now and it should be up to the builders to honour it at the agreed price. look at the reversal. When there was talk of the contract being pulled it was stopped because the contract was already in place and therefore the owners i.e. taxpayers were liable no matter what.
@JPM: yep agree completely, if costs go up then thats up to the contractor, they signed off on the contract so it’s up to them to have inurance in place for such eventualities. They can’t have it both ways.
Is that a 40% increase on the original tendered price or 40% increase on the latest inflated super increased price?
Also are they going ahead with their China sourced facial recognition CCTV system from blacklisted HIKVISON – human rights violations and data protection concerns – maybe someone can ask Tom Parlon to ask his “industry figures”
https://www.businesspost.ie/ireland/dcc-to-cease-using-blacklisted-cctv-firm-feb8c432
We need a tough mofo to deliver this project for the original price, someone that will resist manipulation from the industry
@The next small thing: what kind of clowns are ye , do ye understand that everything has changed with regards social distancing and what not of course it’s going to cost more , twice as long to do the job as well will probably have to go with three shifts as well
@Dec: like ever ready batteries the bill for hospital goes on and on
@Paddy Dunne: let BAM shareholders worry about that
@Paddy Dunne: I’m a pissed off clown, and yes I am aware that things are different now but if there was no clause in the original contract for an increase in price due to a pandemic then the government shouldn’t entertain it. If it means the contractor has to pull out then the state should sue them for breach of contract, if this means BAM goes bust then thats the price of operating in a capitalist country. Are you the type of clown that thinks we should just keep paying whatever the contractor says?
@Dec: was ridiculous a Billion quid ago
@Dec: no, this is BAM!
@JPM: nope. That’s not how contracts work. You’ve heard of unforseen ground conditions? This will be similar scenario. But it won’t cost 40%, that’s just scaremongering. I say scaremongering because I can’t say dogs danglies properly on this censored to within an inch of its life blog platform.
@Matthew O’Kane: brilliant comment – the lad above saying three shifts – get them in 24/7 to knock it up. The almighty euro waits for no man.
@The next small thing: the clown that thinks that there isn’t clauses in the contract for this kind of thing is just fooling himself , I agree that this hospital is sounding like it’s a lot of money , no company could survive doing a major job like that with an unprecedented pandemic and all that goes with it , and your saying they should pull out and go bust , your just fooling yourself they will get extra money for it no doubt
Just put a few schtickeens of dynamite in the 4 corners and make it a car park. Also ban that shower of cronies BAM from ever going near a government contract again
@Quiet Goer: I know just the party who could help with the dynamite…..
@Quiet Goer: Dear today cheap tomorrow I always say
@Mairead Jenkins: Who cares if the hospital will cost 5 billion, Sinn Fein are bad.
How? We are about to enter one if the greatest recessions ever seen. Cost of building materials should fall thru the floor.
This is complete bull. An estimate of the labour inefficiencies due to SD is acknowledged at between 10-20%. BAM will milk the cash cow once again.
Almost 2 billion before a fit out, it won’t stop at 2.5-3 billion!
@buaman: My Dad was in James’s Hospital just before Xmas and there was a leaky Radiator in his ward with a bowl underneath it. Look out his window and you could see the new hospital being built for Billions..
@David Garland: wow. Imagine two things unrelated happening at once. Hope your dad’s ok though.
Shock as construction industry lobbyists say the state will need to pay them more.
“Could”! Rise by 40% unless theres a detailed dreak down I can’t get to grips with it, the same amount of materials needing the same input to construct. Over a longer time period obviously with each stage taken place one after the other rather than numerous at the same time but 40% increase on what?
Can’t at of house to go up? I don’t think so. With the recession we are going to have builders will be crawling to people for work. I’m holding for work in my house until it comes down. As for the hospital. Let’s cut our losses. Redesign, find a different site and I bet the cost will still be considerably lower than the current estimate. Also ban every contractor that is making hay here on project variations from future state bids. The government now has a chance to redeem its self. Hold their hands up, say they made a mistake and build elsewhere and save money.
@John fitzpatrick: cost of nouse*
@John fitzpatrick: ahh feck it
@John fitzpatrick: ha it’s okay John, points well taken!
@John fitzpatrick: should be done on price thats the problem the lads keep coming to them shisters in the dail we need more money ah sure there you go and there is your brown envulope
National embarrassment to say the least..!
Just shut it down and move on, it’s nothing but a big black money pit,
I’d say there was already a cost overrun before any of this covid 19 they were just afraid to announce it, now it been used as an excuse,
What a load of bol@@@x
24 hours in a day, 3 x 8 hour shifts rotating workers will see most projects stay on track while maintaining social distancing
Large public infrastructure spending should be put out to the people of Ireland to vote on.
So everyone has an input in to the final decision.
As to where the public money is spent.
Come up with 3 options.
Put the options out on tv radio stations newspapers to explain these options.
And put the options on a ballot paper.
So when the elections come up for forming a government.
There will be a separate ballot sheet.
Asking the public for their opinion.
1 might be build in dublin city centre cost 2 billion.
2 might be Greenfield site near Dublin airport cost 650 million
3 might be Cork 560 million.
After the counts come back in that’s where the money and the infrastructure is to go.
I’ve yet to hear of anyone who thinks the Dublin city centre was the best option for the hospital.
@marcus connolly: it wasn’t but it’s where FG could get away with paying the most money. Somewhere near the motorway would be the obvious choice.
@marcus connolly: with Dublin’s population Cork wouldn’t stand a chance!!!!
@marcus connolly: you may put it with these argumentation in Leitrim which is even more central. However, the most people are reached in greater Dublin area
Stop that build now move to another place off the m50 so the whole country can access the hospital and also a new price which will be cheaper by millions they are still linning their pockets as this cluster fook carries on
700m additional costs for a project ? We are learning nothing in Ireland about accountability . So much for all in this together ? Need a new govt asap and have to start holding people to account for taxpayers money – it should be totally unacceptable to allow a health crisis turn into a complete cluster f*** of running a country. If this sort of thing is not clamped down on -and quickly – we will be watching as helpless bystanders and allow the country to be ruined as all sorts of vested interests use Covid19 as the excuse for excessive profiteering / anti competitive practices and and blatant abuse.
@Dave Hammond: in a country where no one in public life can get fired for incompetence whether they’re a teacher or a politician – this is what happens.
@Shazam37: covid will not add 700m to this job. Don’t fall for this. The same crowd reckon a house could cost 10% more. That’s more realistic all round.
@Bernard Sweeney: doesn’t matter what the cause is. So very many people should have been fired as a result of the children’s hospital. Resignations sackings and a MASSIVE Chunk if the overrun coming out of Public Sector pension fund.
That’ll teach them to get it right next time.
No words.
A stark reminder of how a country run by FFG actually looks.
So what’s the final bill? 3 and half mill???!!..What a joke. Are they using 24 carat gold bricks or what??
@Luke Lee: Sorry, BILLION.
@Luke Lee: billion my man billion dearest hospital in the world
FFG have this covered.
Few new taxes should sort it ..
Forget about that hospital and start the process all over again next year this time get at least 10 tenders if the world is going into recession like they predict it will then that might effect the prices
Absolute lunatic speak by Parlon the Developers Puppet. The wage costs won’t go up, material costs won’t go up, penalty clauses won’t apply to either side so, Where is this Guy getting 40% on particular developments and 5 to 10% on housing. Guesstimate Parlon is a problem and someone should call the C.I.F. and HOME
Shut it down now!
China would have built 10 hospitals in half the time for this money
Oh no, the whole precautions and extra rules cost money. Who could have known?
Jesus christ where’s Noah
So we’re now talking about a €2.5 billion hospital? What?
@Football in the Groin: No, just the building, it still has to be fitted out and then there will be the change of work practices claims from the unions.
How ridiculous yet not surprising .
Ah lads seriously, how can they let this happen. Most expensive hospital in The world and it will still be a kip compared to others.
@Luther Cooper: 5th most expensive Building on Earth!
This is a scam to get more hard earned cash out of the tax payer, ridiculous at this stage now
Just look at the design of it.. the failure is being blamed on the builder. But the warning were there from the very beginning. Why are we building it beside an old hospital in the city centre. Why isn’t it in a Greenfield site why did the planning for it take so long. Why did so called experts resign from the planning phase over problems. And why does it look like a spaceship? This is a public building paid for with public money. What difference does the design make to the function of a hospital. None some company wanted to win an award for the design and didn’t give a dam about practicality and cost. Now we have the problems and those who got us here are trying to deflect the blame.
Its actually shocking, the level of corruption and lack of accountability in some parts of the public sector. Who actually signs off on this BS?
They need to cop on just build the Hospital stop adding money to it other countries can do it.Happens all the time here
Who do they think they are fooling?
That would be OK if it hadn’t already risen by 100% due to incompetence. What am I saying no it ducken wouldn’t.
This must be the worst handled building in the history of the world
If it wasn’t so serious, this would be hilarious. Why on earth did they think it would be a good idea to build a children’s hospital in the city centre. Surely to god a greenfield site just off the M50 would have made more sense for everyone involved. But sure hey, it’s Ireland, we’ll just bitch and moan and no one will be held accountable.
BAM on a scam! There are consequences from the unavoidable repercussions of Covid 19. We all are feeling them, particularly DAA, Airlines, Tourism, SME’s and the corner shops. Now the CIF are whinging to start work in an industry that you cannot Safe Distance. They are attempting to justify a start up this week, fine, lets see how they go. They are instigating Covid 19 safety precautions to ensure that work can commence on all the sites country wide.
Like BAM there are hundreds of smaller Construction outfits that are in the same boat, frantically placing new procedures in place to continue employment. The difference here is that BAM are gouging us as Irish Citizens, they have not put forward a positive plan to move forward despite a national emergency.
And they say SF are bad with money!
Cancel it- and build again this time in the correct place- anywhere outside the city.
The decision to build there was swayed by private consultant doctors knowing they would get a private hospital wing and entrance built for free for them – they weren’t concerned about the practicalities of the site or cost to us.
40% this isn’t April 1st.
Social distancing my arse! All just bullsh!t for the cameras! I watched 3 lads screwing a 2 metre social distancing sign on to the side of a building on Monday
Cancel it now
Covit will be used as an excuse for these construction companies to rip the Irish tax payer off. Basic common sense should of been used when project managers were drawing up contracts with penalties for not reaching mild stones on time and within budget. Typical Irish civil servants wasting Irish tax payers money.
These bleedin kids better be worth it!
The brown envelopes will soon be bulging
The brown envelopes will soon be bulging
The brown envelopes will soon be bulging
I am at a loss here. Any contract that allows the service provider to charge more because they will take longer to deliver is like signing a blank cheque. Has anyone requested the contract under FOIA?
have your say