Sarah Cremin - Dáil Éireann...2019/03/13 · This e-mail is from NPH. The e-mail and any files transmitted with it are confidential and privileged and intended solely for the use

1

Sarah Cremin

From: Rhonda Evans <[email protected]>Sent: 11 February 2019 20:39To: Pat Haran; Public Accounts CommitteeSubject: NPHDB Finance Sub Committee Meeting Minutes - 2017 & 2018Attachments: Minutes of Finance Sub Committee Meeting - 1st Aug 2018 (ID 46635).pdf;

Minutes of Finance Sub Committee Meeting - 2nd July 2018 (ID 46633).pdf; Minutes of Finance Sub Committee Meeting - 3rd May 2017 (ID 46649).pdf; Minutes of Finance Sub Committee Meeting - 5 December 2018 (ID 46684).pdf; Minutes of Finance Sub Committee Meeting - 5 November 2018 (ID 46680).pdf; Minutes of Finance Sub Committee Meeting - 5 Sept 2018 (ID 46676).pdf; Minutes of Finance Sub Committee Meeting - 8th January 2018 (ID 46667).pdf; Minutes of Finance Sub Committee Meeting - 25th April 2018 (ID 46629).pdf; Minutes of Finance Sub Committee Meeting - 25th October 2017 (ID 46663).pdf; Minutes of Finance Sub Committee Meeting - 26 Sept 2018 (ID 46678).pdf; Minutes of Finance Sub Committee Meeting - 26th April 2017 (ID 46646).pdf; Minutes of Finance Sub Committee Meeting - 26th July 2017 (ID 46657).pdf; Minutes of Finance Sub Committee Meeting - 27th March 2018 (ID 46673).pdf; Minutes of Finance Sub Committee Meeting - 27th September 2017 (ID 46661).pdf; Minutes of Finance SubCommittee Meeting - 28 November 2018 (ID 46682).pdf; Minutes of Finance Sub Committee Meeting - 28th February 2018 (ID 46671).pdf; Minutes of Finance Sub Committee Meeting - 28th June 2017 (ID 46655).pdf; Minutes of Finance Sub Committee Meeting - 29th March 2017 (ID 46643).pdf; Minutes of Finance Sub Committee Meeting - 29th November 2017 (ID 46665).pdf; Minutes of Finance Sub Committee Meeting - 30th August 2017 (ID 46659).pdf; Minutes of Finance Sub Committee Meeting - 30th May 2018 (ID 46674).pdf; Minutes of Finance Sub Committee Meeting - 31st January 2018 (ID 46669).pdf; Minutes of Finance Sub Committee Meeting - 31st May 2017 (ID 46652).pdf

Categories: Green Category

Dear Eilish & Pat As requested by the members of the Public Accounts Committee and Joint Oireachtas Committee on Health, please find attached minutes of the NPHDB Finance Sub Committee Meetings for 2017 & 2018. With kind regards Rhonda Evans Communications Manager NPHDB

This e-mail is from NPH. The e-mail and any files transmitted with it are confidential and privileged and intended solely for the use of the individual or entity to whom they are addressed. Any unauthorised direct or indirect dissemination; distribution or copying of this message and any attachments is strictly prohibited. If you have received the e-mail in error please notify [email protected] and delete the e-mail from your system. The NPHDB operates in accordance with the General Data Protection Regulation (GDPR). When you receive an email from us it's because we believe that you have a legitimate interest in receiving it. Please refer to our Privacy Statement on our website at newchildrenshospital.ie for more information on how we safeguard your personal data.

Page 1

MINUTES OF MEETING

Meeting Finance Sub-Committee Meeting

Date 8th January 2018

Time 4.00pm

Venue Boardroom, Block A, Herberton

Present

Name Company Initial

Paul Quinn (Chairman) Brian Fitzgerald Jim Curran John Pollock Declan Holmes Jim Farragher Richard Fitzpatrick Ronan Traynor Apologies Tom Costello Norman Craig

Board Member Board Member HSE Estates Project Director Commercial Director Financial Officer Director for Programme Management Project Accountant Board Member Commercial Advisor

PQ BF JC JP DH JF RF RT TC NC

NO. ITEM DESCRIPTION/ACTION OWNER

1.0 Review of the Minutes from

last meeting on 29th November

2017

a) Action Point – CHG Lease – This has now been approved by the HSE and is with legal for sign-off, expectation that it should be signed in advance of next meeting.

The minutes of the meetings of 29th November 2017 were reviewed and approved as amended.

JF

Noted

2.0 Change Order Log

The change order log was presented to the committee. Change Orders 205 and 206 were under €100k, have been approved by the executive and were noted by the committee. Change Order No. 207 for BAM for €17.3m relating balance of cost for installation of sprinklers was reviewed and recommended for approval at the next Board meeting by the committee. There were no new early warning or construction contingency change orders. A copy of the new change orders sheet is included in Appendix 1. Change Order 207 - the Committee recommends this Change Order to the Board for approval.

Noted

Noted

Noted

3.0 Cost Update DH provided a cost update report stating that approx. 20% of GMP by measure had been completed to date and that a large number of packages had been released.

Noted

Page 2


DH confirmed that the CHP&P Board had been presented with the projected overall costs and are sympathetic in principal the requirement for additional funding for the sprinklers as this is now a requirement from ABP. The capital equipping cost was discussed, including the possibility of funding the capital equipment as MES rather than operational expenditure and also that MES has not yet been approved by the Dept. and this could take a number of months. It was noted that any shortfall in funding could lead to de-scoping of the project. However it was noted that given the amount of VE already undertaken there was little if any opportunity for further de-scoping without materially impacting on the approved Design Brief. It was agreed that the committee would provide an update to the Board on this Cost Update but Board approval on the overall costs would not be sought until the Board meeting on 7th March 2018, in advance of the CHP&P meeting on 20th March 2018. b) Action Point – The committee requested that a copy of the

report be circulated to the committee.

c) Action Point – DH to provide a report on Contingency spending to date for the next meeting.

O’Reilly Avenue Insurance Claim – the executive explained that the expenditure for moving of services would not be included in the insurance claim on the advice of our insurance advisors, as this work was completed to mitigate potential future claims. Service Diversion Costs at Tallaght – A meeting is to be held with BAM on this on Friday, Turner & Townsend have estimated costs to NPH for these works, as they are not included in the BAM tender; this will be covered by contingency funding for the satellite centres. d) Action Point – RT to raise an early warning change order for

this. 2018 Funding – it was noted that there is a gap between projected spending and HSE funding allocation for 2018, the committee are to appraise the Board on the 2018 cash-flow and HSE funding for 2018.

Noted

Noted

Noted

Noted

DH (completed)

DH

Noted

Noted

RT

Noted

4.0 Legal Fees Update

RF provided a very detailed and comprehensive report with a breakdown of work completed by McCF on procurement and on contracts. A forensic examination was carried out by the executive on the Fee Claim provided by McCF across detailed headings and the hourly rates were confirmed to be in line with tendered contract rates. The committee approved the proposed settlement which is in full and final settlement of all claims.

Noted

Noted

Page 3


Going forward the executive have tendered for legal services through the OGP legal framework with a closing date of 19th January 2018.

Noted

5.0 AOB N/a

Next Meeting 31st January 2018 in Boardroom, Herberton @ 2pm (TBC)

Page 4

Page 1

MINUTES OF MEETING


Date 31st January 2018

Time 4.30pm


Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Curran John Pollock Norman Craig Declan Holmes Jim Farragher Richard Fitzpatrick Ronan Traynor Apologies Tom Costello

Board Member Board Member HSE Estates Project Director Commercial Advisor Commercial Director Financial Officer Director for Programme Management Project Accountant Board Member

PQ BF JC JP NC DH JF RF RT TC




2017

a) Action Point – CHG Lease – Lease has been approved for signing, expectation it will be completed in the next three to five weeks.

The minutes of the meetings of 8th January 2018 were reviewed and approved as amended.

JF

Noted


The Change Order Log was presented to the committee. Change Order 208 was under €100k, has been approved by the executive and was noted by the committee. Change Order No. 209 for McCann FitzGerald for €300k, relating to additional legal fees, was presented to the committee at the last meeting as an early warning change order and was recommended for approval by the Board, the Board approved it at the 10th January 2018 meeting. There were four new early warning change orders noted by the committee;

• IP35 for the Independent Contract Expert was discussed, the committee requested that the executive look to cap fees on contracts where possible;

• IP36 was discussed and the executive confirmed there would be an extension of time due to the service diversion requirements at Tallaght.

Noted

Noted

Page 2


There were no construction contingency change orders. A copy of the new change orders sheet is included in Appendix 1. There are no Change Orders requiring recommendation by the Committee to the Board for approval.

Noted

Noted

Noted

3.0 Commercial Update

A comprehensive commercial update was provided by DH to the Joint Construction and Finance Sub-Committee meeting held in advance of this meeting. The executive stated that when seeking government approval in June ’18 it would be sought for the awarding of Phase B. MES Business Case would not be approved but a comprehensive list of Groups 1 to 4 equipment, with cost estimates , would be prepared and reviewed by HTEG but would not finalised as not tendered/contracted for. The committee noted that DPER will only consider MES if it is value for money and the executive confirmed that this is the approach being taken in the Business case. b) Action Point – Updated Cash-flow – DH to provide an

updated cash-flow for the next meeting, he confirmed no change since presented last.

Noted

Noted

Noted

DH

4.0 AOB The executive informed the committee that HLM Coady have provided an estimate of the claim for additional fees, similar to those agreed for the other design team members in 2017. The committee requested that the executive complete costings for those additional fees and revert to the committee for recommendation on how to proceed. c) Action Point – Costing for HLM / Coady Additional Fees

– Executive to prepare costings for presentation to the committee.

Noted

JP / Ger Madigan

Next Meeting 28th February 2018 in Boardroom, Herberton @ 2pm

Page 3

Page 1

MINUTES OF MEETING


Date 28th February 2018

Time 2.000pm

Venue Meeting Room 2, Block A, Herberton

Present


Paul Quinn (Chairman) (By Phone) Tom Costello (By Phone) Brian Fitzgerald (By Phone) John Pollock Declan Holmes (By Phone) Jim Farragher Ronan Traynor Ger Madigan (By Phone) Apologies Jim Curran Norman Craig

Board Member Board Member Board Member Project Director Commercial Director Financial Officer Project Accountant Lead Project Manager HSE Estates Commercial Advisor

PQ TC BF JP DH JF RT GM JC NC



last meeting on 31st January

2018

a) Action Point – CHG Lease – Lease has been signed by HSE and has been returned to their solicitors to be forwarded to NPH solicitors, expect receipt shortly.

The minutes of the meetings of 31st January 2018 were reviewed and approved as amended.

JF

Noted


The Change Order Log was presented to the committee. There are 2 Change Orders requiring recommendation for approval to the Board by the committee. Change Order 210 – McCann Fitzgerald for €87,173 plus VAT for legal expenses relating to the O’Reilly Avenue High Court action was presented to the committee; it was noted that the insurance advisors advised that payment could be made at this time and not be prejudicial to the insurance claim. The committee agreed to recommend approval of the change order to the Board. It was noted that in relation to the works at O’Reilly Avenue that BAM Insurance broker in their correspondence with Willis Insurance appeared to accept some liability. Change Order 213 – HLM/Coadys – a paper was presented by GM to the committee in relation to the additional fee claims by HLM/Coadys for works on the Satellite Centres. The additional fees being recommended are broadly in line with those of the

Noted

Noted

Noted

Noted

Noted

Page 2


other design teams previously agreed. . It was also noted that Item 4 includes programme realignment to the end of the build. The change order has been approved by the Commercial Director DH and thus the required approval process has been followed. The committee agreed to recommend the change order for approval by the Board. There are 2 Change Orders under €100k incl. VAT for noting to the committee; Change Order 211 for €33,333 for BDP for additional fees due to 2 month extension of EWC as a consequence of the delay on the main contract from August to October 2017; and Change Order 212 for Fatima Group for cleaning services, this contract was extended while the executive sought approval to tender for the services using a “Reserved Contract”. This tender has now been issued. There were no new early warning change orders noted by the committee. JP informed the committee that Arup have stated they will be looking for additional fees for work on preparation of detail design for GMP Contract as they claim this work has been delivered out of sequence; the committee stated the executive should request that Arup focus on delivering a robust GMP and then consider additional fees.

There were no construction contingency change orders. A copy of the new change orders sheet is included in Appendix 1. There are 2 Change Orders requiring recommendation by the Committee to the Board for approval, No. 210 and No. 213

Noted

Noted

Noted

Noted

Noted

Noted

3.0 Commercial Update

DH provided a verbal update on the cash-flow stating it is trending approx. €5m behind but that BAM are catching up on the schedule and have exceeded KPIs on excavation by 10% and by 5% on piling in the last 4 weeks. b) Action Point – Updated Cash-flow – DH to circulate a copy

of the cash-flow update at committee members

c) Action Point - DH to provide a further cash-flow update at next meeting.

It was noted that BAM are approx..4 weeks behind on the GMP programme and that the executive are addressing this with them. It was also noted that Mercury and Jones’s are engaging better than BAM on the GMP programme measure/costing. The committee requested that the executive seek engagement with BAM as there is a requirement to report to Government in Apri/Mayl. It was noted that the NPH had met with the DoH in relation to the overall funding and that the additional funding for the sprinklers is likely to be funded by the DoH, In relation to the further additional funding needed this is being addressed with the CHG for funding

Noted

DH (completed)

DH

Noted

Noted

Page 3


through philanthropy, naming right and the foundations and possible sale of assets. The committee stated this must be clarified and agreed and that a workable model needs to be in place prior to moving to Phase B of the build. This is to be addressed and the CPH&P Board meeting on 14th March 2018. Clarity will be required between all the key stakeholders, DoH, HSE, CHG & NPH as to the status of client contingency and who holds the future funding risk in the event of any overspend

4.0 Review of Actual v Budget

for 2017

As per requirements of Code of Governance for State Bodies, the Actual v Budget (Nov ’16) figures for 2017 were reviewed, actual spend was approx. €2.5m less than budgeted this being mainly as a result of underspending on construction and the payment of additional design team fees and planning costs.

Noted

5.0 AOB BF informed the committee that the Audit & Risk Sub Committee are recommending altering the Internal Audit Services contract by de-scoping some work and adding work on the review of Board and Executive Structures and that although increasing costs above tendered should stay within the recommended public procurement thresholds. .

Noted

Next Meeting 28th March 2018 in Meeting Room 2, Herberton @ 2pm

Page 4

Page 1

MINUTES OF MEETING


Date 27th March 2018

Time 2.00pm

Venue Office of Government Procurement, 3 Spencer Dock

Present


Paul Quinn (Chairman) Brian Fitzgerald John Pollock Declan Holmes Jim Farragher Ronan Traynor Norman Craig Apologies Jim Curran Tom Costello Guests Ross Shorten (Review of Car Park Business Case only) James Kearney (Review of Car Park Business Case only)

Board Member Board Member Project Director Commercial Director Financial Officer Project Accountant Commercial Advisor HSE Estates Board Member Lisney Lisney

PQ BF JP DH JF RT NC JC TC RS JK


1.0 Review of Car Park Business

Case

It was agreed to deal with Item 3 of the agenda, the Car Park Business Case, first. The committee were updated on the amended Car Park Business Case which:

- now incorporates the funding requirement of €47m; - will be updated further to incorporate the findings of the

surveys completed in Crumlin Children’s Hospital; - Lisney believe the €47m is a reasonable expectation; and

that they recommend that the tender states a fixed period for the lease and requests tenderer to quote the amount they will offer for this;

- no guarantees will be provided to the funder on the revenue to be generated from the car park;

- we will provide tenderers with data on hospital activity and expected usage and the car park survey but no projections;

- there are queries to be addressed on CHG legislation, VAT, Rates and capital allowances to be bottomed out prior to going to tender;

- the updated Business Case, once completed, will be provided only to the NPH Board, the CHG Board, the HSE and the DoH (and their advisors); and

Noted

Page 2


- the Minister has called for a nationwide review of hospital car park charges and that until this has been reported on the NPH cannot go to tender.

The committee agreed that the preferred approach would be to fix the lease period. The committee noted that the contribution to the car park operator of €168,000 from staff parking seemed low; the executive informed them that this figure has been previously agreed with the Board and with the CHG Board and that the CHG have not finalised what they will or can charge staff; and that they will be required to provide funding to the campus mobility management plan from these funds also.

a) Action Point – Cost of Car Park Funding Tender – the committee requested to be informed on what the expected cost of this tender will be. The executive are to provide this information at the next meeting.

Post Meeting Note – the Project Budget includes €600k to cover, financial, commercial and legal advice, which would include pre-engagement with potential tenderers and assistance with the issuing and evaluation of tenders. To date we have committed €130k of this budget.

The committee noted the revised timeline for the Car Park Funding Tender and also noted that this is subject to completion of the report to the Minister noted above. It was also noted that the CHP&P are briefed on an on-going basis on the Car Park Business Case and the related tender.

Noted

RT

Noted

Noted


last meeting on 28th February

2018

The committee requested that the minutes from the previous meeting be amended to remove the following: “It was noted that the NPH had met with the DoH in relation to the overall funding and that the additional funding for the sprinklers is likely to be funded by the DoH,” And replace it with the following: ““It was noted that the NPH had met with the DoH in relation to the overall funding and that the submission made states that additional funding is being sought” CHG Lease – Signed lease has been received. It was noted that there was no update to the cash-flow since the previous meeting, however the NPH has received a letter from the HSE on funding.

b) Action Point - Cash-flow – it was noted that the NPH have received a letter (12/3/18) from the HSE confirming a multi-annual funding plan which has significant variances to the funding requirements included in the approved Business Case and the last NPH cash-flow presented at Feb committee meeting. A review needs to be completed and a discussion is to take place with the

Noted

Noted

Noted

DH / NC

Page 3


CHP&P steering group. The matter should also be noted to the Board at the next meeting. The NPH should also respond to the HSE’s letter and schedule a meeting with the HSE and DoH.

Post meeting note – letter sent to the HSE, copy circulated with papers.

Subject to this amendment the minutes of the meetings of 28th February 2018 were approved by the committee.

Noted


The Change Order Log was presented to the committee. There is 1 Change Order which the executive stated required recommendation for approval to the Board by the committee. Change Order 218 – BDP – for €307,052 incl. VAT for EDMS fees – BDP continue to host “4 Projects” for the NPH since July ’17 when this hosting was to transfer to BAM under the main contract. Due to various unresolved issues BAM have not met this requirement and thus BDP have been requested to continue the hosting service. The proposed change order would cover the hosting to Sept ’22.

c) Action Point – Amend Change Order 218 - The committee requested that the executive alter the change order to cover the service for 1 year only to June ’18 for a total of €58,486 incl. VAT and provide a brief to the committee with more detail on how the matter will be managed. The monthly fee remains the same as while under contract with BDP. On this basis the committee approved the amended change order and it will not be necessary to bring it to the Board for approval.

There were 4 change orders to be noted by the committee, Change Orders No. 214 -217 as detailed in Appendix 1. There was 1 new early warning change orders noted by the committee, IP No. 39 for MSA / FCC for €195,000 in relation to additional design team for additional scope and prolongation similar to the other design teams previously agreed and additional work in relation to the Fire Cert.

There were no construction contingency change orders. A copy of the new change orders sheet is included in Appendix 1. There are no Change Orders requiring recommendation by the Committee to the Board for approval.

Noted

Noted

Noted

RT

Noted

Noted

Noted

4.0 Community Facilitator

The committee were briefed on the requirement to extend the contract for the community facilitator. Subject to the steps, as laid out in the brief, being completed the committee agreed to recommend the extension of the contract to the Board.

d) Action Point – Recommendation - the committee are to recommend the extension of the contract to the Board.

Noted

BF

Page 4


e) Action Point – 40.02 Report – the contract for the Community Facilitator will be noted on the 40.02 Report

RT

5.0 AOB The executive provided an update on progress on GMP to the committee stating that:

- It is trending one month behind schedule presently; - The briefing process is planned to start in May ’18; - It is planned to issue the GMP report late June and bring

to Government in July ’18, this remain very challenging; - BAM and Mercury are aware of the deadlines to commit

to the GMP and the need for them to be met, however BAM are not effectively engaging at present; and

- The executive will provide a progress report at the next meeting.

Noted

Next Meeting 25th April 2018 in Meeting Room 2, Herberton @ 2pm

Page 5

Page 1

MINUTES OF MEETING


Date 30th May 2018

Time 2.00pm

Venue Boardroom, Herberton

Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Curran John Pollock Declan Holmes Jim Farragher Norman Craig Phelim Devine Richard Fitzpatrick Ronan Traynor Donal Murnane (part) Ger Madigan (part) Apologies Tom Costello

Board Member Board Member HSE Estates Project Director Commercial Director Financial Officer Commercial Advisor Design Director Director for Programme Management Project Accountant Project Manager Lead Project Manager Board Member

PQ BF JC JP DH JF NC PD RF RT DM GM TC



last meeting on 25th April 2018

The committee approved the minutes from the previous meeting.

a) Action Point – Cash-flow & Budget Update – The committee stated that the executive can only commit to spending within the current HSE capital commitments. The executive stated that the project is tracking to the HSE capital commitment for 2018. The executive is to provide the committee with an updated cash-flow and budget update at the next meeting.

b) Action Point – BDP and EDMS Fees – A workgroup has been set up to resolve this issue and the executive will update the committee at the next meeting.

c) Action Point – Independent Expert – The executive advised that following recent engagement between the contractor and the design team on GMP matters the involvement of the independent expert is expected to be less intensive than originally envisaged. The Independent Expert has indicated this input would be in the order of approx. 5 days per month from June until Sept ’18; the Executive advised the Independent Expert is yet to submit invoices for April and May and the commission

Noted DH / NC /

RT

DH / PD

RF / RT

Page 2


needs to be extended to cover these costs; the sub-committee acknowledged the need to extend the commission and approved the raising of a change order for €40k; the executive confirmed it will monitor the level of input of the Independent Expert on a fortnightly basis and to report to the committee monthly. It was noted the input of the Independent Expert needs to be such that the requirements of the project are met.

2.0 SJH – Operational

Costs re Diversion of

Services

DM informed the committee that SJH will incur costs in relation to the monitoring of the diversion of services to ensure continued supply to vital areas in the hospital. SJH have informed us that we will be billed for these costs. The committee approved expenditure of up to €20k from the capital contributions budget for this.

Noted


The Change Order Log was presented to the committee. There were 3 Change Order Nos 220 to 222 and 3 Reverse Change Orders Nos 223 to 225 as detailed in Appendix 1.

d) Action Point – Insurance claim - The committee were informed that Change Order No. 221 for OCSC will form part of the NPH insurance claim and that this claim will start to be progressed once the scope of the repairs to the houses on O’Reilly Ave. are determined in 2/3 months. The committee requested that this item be kept on the agenda and an update be provided by the executive on a monthly basis until resolution.

There was 1 new early warning change order noted by the committee, IP No. 41 for Arup. The committee was informed that the executive has responded with a formal “No” to the claim. The matter may be referred for conciliation. A copy of the new change orders sheet is included in Appendix 1. There are no Change Orders requiring recommendation by the Committee to the Board for approval.

Noted

Noted

JF

Noted

Noted

Noted

4.0 Purchase Order Review Process

RT presented a paper on the Purchase Order Review Process – the committee approved this process.

Noted

5.0 GMP Update The committee agreed to defer this item to the Joint Construction and Finance Sub-Committee meeting to held after this meeting.

Noted

6.0 Independent Expert

This item was dealt with above in 1 (c). Noted

5.0 AOB N/a

Next Meeting 2nd July 2018 in Meeting Room 2, Herberton @ 2pm

Page 3

Page 1

MINUTES OF MEETING


Date 29th March 2017

Time 5.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald John Pollock Jim Farragher Norman Craig Jim Curran (by phone) Ronan Traynor Apologies Tom Costello

Board Member Board Member Project Director Financial Officer Commercial Director HSE Project Accountant Board Member

PQ BF JP JF NC JC RT TC



last meeting on 25 Jan 2017

a) Action Point – CHG lease agreement with HSE – with legal representatives for HSE for final sign-off by HSE. b) Action Point – MES – currently finalising tender for advisory services; Executive to confirm to the Committee that MES Budget is adequate The minutes of the last meeting were reviewed and approved.

JF

JF

Noted

2.0 VE Update and Design Team

Report on Tenders

It was noted that the Design Team Report on Tenders are expected early next week for the nch and the following week for the satellite centres. It was noted that there are 2 Types of V.E. to be included in the main contracts:

i. Type 1 that have been agreed specifically and itemised, it was noted that Linesight have these details and BAM have agreed these elements.

ii. Type 2 that have been developed in some detail but not yet finalised and agreed with BAM as designs not fully developed and so remain as realistic VE targets.

It was noted that the CHG have been involved on an ongoing basis on VE discussions.

Noted

Noted

Noted

Noted

Page 2


It was noted that the contract documents are being drafted by McCann’s in discussion with the BAM legal team and that discussions on V.E. continue in tandem to this between the Design Team and BAM. It was noted that the 180 day expiry for tenders for the works contracts for the nch and satellites are approaching, 12th for satellites, 19th for nch..

Noted

3.0 Change Order Log Review

The change order log was presented to the committee and was approved. See Appendix 1. It was noted that the Board have agreed to approval of change order 167 for €350k net of VAT for Enabling Works transfer from Main Works Contract as approved at NPH March Board meeting.

Noted

Noted

4.0 Projects Accounts Reporting

The draft project accounts reports were presented to the Committee for the Overall Project and for Planning Fees. c) Action Point – The committee requested that the reports include a forecast in addition to the budget taking account of the timelines. RT confirmed he is working with the Project Scheduler to include the timelines. The Executive agreed to finalise the Budgets once V.E. and G.M.P. completed to include the V.E. and G.M.P. Once we have clarity on Business Case approvals & timelines the cash-flow for 2017 to be updated.

Noted

RT/NC

5.0 AOB d) Action Points – the Executive confirmed that the delegated authorities in place would be reviewed with a view to increasing them in advance of invoicing beginning on construction works contracts.

JP/JF

Next Meetings 26th April 2017 in Meeting Room 1. Herberton @ 5pm.

Page 3

Page 1

MINUTES OF MEETING


Date 25th April 2018

Time 2.00pm

Venue Meeting Room 2, Herberton

Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Curran Tom Costello (part) John Pollock Declan Holmes Jim Farragher Norman Craig Pat Molloy Ronan Traynor Apologies

Board Member Board Member HSE Estates Board Member Project Director Commercial Director Financial Officer Commercial Advisor Construction Director Project Accountant

PQ BF JC TC JP DH JF NC PM RT



last meeting on 27th March 2018

The committee approved the minutes from the previous meeting.

a) Action Point – Cash-flow – CHP&P Steering Group met on Monday to review multi-annual cash-flow and discuss proposed HSE Funding; it is proposed that NPH, HSE and DoH to arrange to meet to discuss.

b) Action Point – BDP and EDMS Fees – A change order has been raised for EDMS fees for 1 year, a proposal for the balance to the end of the project is to be brought forward to the committee once resolved with BAM.

Noted

JP

DH / Phelim Devine


The Change Order Log was presented to the committee. There was 1 Change Order No. 219 as detailed in Appendix 1.

c) Action Point - The committee were informed that Change Order No. 219 and Change Order No. 210, both for McCann FitzGerald re O’Reilly Ave., are incorrectly noted as change orders and will be removed in the next log; this work was instructed through the legal framework; the committee was also informed that these costs, and further costs to be complete the works, would be subject to an insurance claim by the NPH.

Noted

Noted

RT

Page 2


The committee noted that the previously approved Change Orders 211, 214, 215 and 218 for BDP cumulatively exceed €100k. There was 1 new early warning change order noted by the committee, IP No. 40 for Ethos/Design Team for €28,000. A copy of the new change orders sheet is included in Appendix 1. There are no Change Orders requiring recommendation by the Committee to the Board for approval.

Noted

Noted

Noted

Noted

3.0 GMP Update The committee were provided with a GMP update. There have been challenges with the contractors on fully engaging on GMP. However a new process requiring more engagement by all parties has been developed to manage the individual packages. Each package has been assigned an NPH project manager to complete an in-depth review and to engage with the various contractors and Design Team members.

d) Action Point – The committee requested that the Board be briefed on this new process and any interim steps. The paper on this should be circulated to the Finance Sub-Committee members in advance of the Board Meeting.

The committee, having discussed GMP progress, agreed that any governance issued to be clarified and substantial progress on GMP must be made prior to the executive agreeing to any works being moved from Phase B to Phase A.

Noted

Noted

DH

Noted

4.0 Independent Exert

The committee were briefed on the requirement to extend the contract of the independent Expert as there has been substantial changes to the nature of and involvement on the project to progress the GMP activity.

e) Action Point – The committee requested that the executive engage with the Independent Expert on fees as the role has become virtually full-time for 2 months and the agreed hourly rate may no longer be appropriate. The committee requested that they be updated on this matter by email for approval given the urgency to progress the GMP activity.

Noted

RF

5.0 AOB N/a

Next Meeting 30th May 2018 in Meeting Room 2, Herberton @ 2pm

Page 3

Page 1

MINUTES OF MEETING


Date 26th April 2017

Time 5.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Farragher Norman Craig Jim Curran Ronan Traynor Apologies Tom Costello John Pollock Additional Attendees Mick Greene (part) Donal Murnane (part)

Board Member Board Member Financial Officer Commercial Director HSE Project Accountant Board Member Project Director Linesight Project Manager

PQ BF JF NC JC RT TC JP MG DM



last meeting on 29 March 2017

a) Action Point – CHG lease agreement with HSE – to be finalised with Tom Fahy b) Action Point – MES – the committee requested that the executive hold off on the appointment of the MES consultant until receipt of confirmation from the HSE on the agreed approach for the equipping of the hospital, the executive to inform relevant parties. It was suggested that the Executive prepare a Business Case for MES v traditional purchase of equipment, once terms of funding approval reviewed

Subsequent clarification: The contract for the awarding of the MES Advisor only commits an initial fee of €33k plus VAT for the advisor to work with the HTO team over a 6 month period to develop a lot by lot business case. At this point the position will be reviewed and a decision will be made as to whether to proceed with MES. If the decision made is to not proceed the MES Advisor contract will be terminated without any further fee. c) Action Point – The committee requested that the monthly cost reports include a forecast in addition to the budget taking account of the timelines. The Executive agreed to finalise the Budgets once V.E. and G.M.P. completed to include the V.E. and G.M.P. RT to bring the proposed structure of the reports to the next meeting.

JF

JP/JF

RT

Page 2


d) Action Points – the Executive confirmed that the delegated authorities in place would be reviewed with a view to increasing them in advance of invoicing beginning on construction works contracts. The minutes of the last meeting were reviewed and approved.

JP/JF

Noted

2.0 Enabling Works Update / Main

Works Contract

It was noted that the main works contract is expected to be ready for signing in late May ’17 which would allow the contract to start on 1st August ’17; the Procurement Working Group has stated that they are proposing that a Letter of Intent be signed for works on the critical path which will be limited to a specific sum noted in the update. This work would be carried out prior to the 1st August start-up. The committee was given an update on the Enabling Works and the extensions to this work. It was noted that the Enabling Works are proceeding on or ahead of schedule but that the additional works have been delayed due to issues on the water main for SJH. A total of €4,8m has been expended to date on Enabling Works and it is expected that the overall budget of €8m (excluding the €3m transfer for additional works) will be adequate. It was also noted that the expenditure to date on extension of the Enabling Works is within the €500k previously approved by the Board. It was noted that other additional works which needs to be scheduled may need to be started in advance of the signing of the contract for the main works; as noted above the Procurement Working Group is proposing this be handled by way of a Letter of Intent. e) Action Point – the Committee have requested a meeting at 3pm on Wednesday 3rd May in advance of the Board Meeting to;

- discuss the Letter of Intent in relation to the additional works on the Enabling Works and for works on the critical path in detail; the minutes of the Procurement Working Group meeting covering this item will be circulated with the Board Pack;

- an update on the In-progress Change Order for additional design team fees for the nch and the satellite centres; - an update on the Eir Infrastructure proposed PO for €150k including details of the costs and negotiations with Eir; - an update on the additional legal fees for McCann Fitzgerald of approx. €150k - €200k including the original fee agreed for the work; and - confirmation that the Executive will introduce a process for the seeking of approval for legal advice prior to seeking it.

Noted

Noted

Noted

RT (completed)

MG

Ger Madigan /

Phelim Devine

DM

Richard Fitzpatrick

JF

Page 3


- Update on the appointment of the Independent Expert on the Main Contract

f) Action Point – the Committee requested that the Executive seek written confirmation from the HSE prior to awarding the main contract works contract if not confirmed in the letter from the HSE on capital approval.

Richard

Fitzpatrick

JP

3.0 Change Order Log Review

It was noted that Change Orders 170 & 171 relating to Linesight for support on the Decant project to the end of April ’17 (part transferred to the Enabling budget in agreement with SJH) would be the last change orders required on this project from Linesight g) Action point – the Committee requested that the Change Order Log include a report on which Change Orders were scope changes and which were not. h) Action Point – the Committee requested that the Executive include that the details of the Purchase Order for the Eir Infrastructure, once approved, be included on the “402” statement.

Noted

RT

JF

5.0 AOB N/A

Next Meetings 3rd May 2017 in Meeting Room 1. Herberton @ 3pm.

Page 4

Page 1

MINUTES OF MEETING


Date 3rd May 2017

Time 3.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald John Pollock Jim Farragher Norman Craig Ronan Traynor Apologies Tom Costello Jim Curran Additional Attendees Phelim Devine Richard Fitzpatrick Mick Greene (part) Donal Murnane (part) Fran Hegarty (part)

Board Member Board Member Project Director Financial Officer Commercial Director Project Accountant Board Member HSE Estates Design Director Director for Programme Management Linesight Project Manager Healthcare Technology Officer

PQ BF JP JF NC RT TC JC PD RF MG DM FH


1.0 Agenda & Submissions to the Committee

The committee stated that going forward no item, on which papers are required to be reviewed, should be included on the agenda unless the papers have been circulated to the committee, within a reasonable time to allow for review, in advance of the meeting.

Noted

2.0 Appointment of the MES Advisor

FH informed the committee that the contract award for the MES Advisor has a break clause after phase 1 of the contract; if the Business Case for MES is unsuccessful this break clause will be triggered; the cost for services to that point would be €33k. The committee agreed that the executive can proceed to commit this expenditure.

Noted

Noted

3.0 Change Order for extension of Enabling Works

& Letter of Intent

for the Main Contract Works

The committee discussed the Letter of Intent (LOI) and the Change Order and agreed in principle to issue the LOI subject to:

- The Procurement Working Group confirming they have agreed to this;

- Confirmation that the NPHDB Board agree that LOI can be issued.

Noted

Page 2


4.0 Appointments of the

Independent Expert & Standing

Conciliator

RF explained the requirement for these appointments as part of the NCH and Satellite Centre Main Works Contract. The candidates have to be agreed, as required, with BAM, with the costs associated with the Standing Conciliator being split 50/50 with BAM. The executive is in the process of agreeing fees with both appointees to cover both the nch and satellite centres, including possible costs for any expertise the Independent Expert may need to assist in areas outside his areas of expertise. The committee enquired as to how the candidates were selected; the executive confirmed that Reg 10 of SI 284/2016 advises the Regulations do not apply to these specialist services and that the Procurement Working Group had discussed potential candidates; the appointees were chosen due to their relevant experience and involvement on other projects and suitability for the NPH. Action Point b) - The committee requested that the executive ensure the scope of services associated for each of the roles is agreed with the proposed individuals, that an appropriate fee is agreed for these including the payment mechanism. The executive informed the committee that the initial fee for the Standing Conciliator has been assessed at €130k and for the Independent Expert at €150k. The committee agreed in principle to proceed with the appointments and approved raising a Purchase Order for €50k for these to be issued on each contract. Action Point c) – Purchase Orders to be raised for 2x €50k with the committee being updated once fees have been agreed

Noted

Noted

Noted

RF

Noted

Noted

RT

5.0 EIR Infrastructure

DM informed the committee of the 18 months of negotiations entered in to between the NPH and EIR on the relocation of their infrastructure to facilitate the build. EIR are unwilling to amend their standard Terms and Conditions in any way. The scope of the works and quantum of the costs were agreed with Eir. The cost reflects that all works have to be carried out outside of normal hours. Any further delay will impact on progressing the main contract works which could have significant cost both financially and in terms of programme as the EIR infrastructure is a constraint on a section of piling. EIR have also conceded that this relocation will facilitate the widening of the road in future as part of the nch development and the specification for materials and installation will take that cognisance of that. The committee agreed for the executive enter the contract with Eir. Action Point d) – Subject to approval by the Board a Purchase Order is to be raised for the €150k required for the Eir Infrastructure.

Noted

Noted

RT

6.0 McCann FitzGerald legal

fees

RF informed the committee that the additional legal fees claim which McCann FitzGerald has notified the NPH of is as a result of additional services being provided, over and above the original

Noted

Page 3


scope which was based on a fixed fee. Quantification of what the fee claim might be is yet to be received however RF has made an assessment that the additional fees could be in the region of €150k to €200k. The committee noted the requirement for additional legal fees and requested that when McCann FitzGerald has submitted their assessment of these, the executive review the fee claim in the context of the scope of their appointment with the aim reaching an agreement on the value of the additional fees and revert to the committee for approval.

Noted

7.0 In-progress change orders for additional design team

fees

PD informed the committee that the executive is in negotiations with the design team for the nch and satellite centres on additional fees which arise as a result of:

- Prolongation - Inflation - Delays in the performance periods for nch and satellites - Scope changes, e.g. value engineering

The design teams are taking a consistent approach to making their claims and once all additional costs are received the executive will review and begin negotiations, to date 3 of the 4 design teams on the nch have made submissions. PD informed the committee that the ITTs contain detailed principles which will assist in the negotiations. The executive is to revert to the committee on on-going negotiations and for approval of additional fees.

Noted

Noted

Noted

Noted

Next Meetings 31st May 2017 in Meeting Room 1. Herberton @ 5pm.

Page 4

Page 1

MINUTES OF MEETING


Date 31st May 2017

Time 5.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Farragher Norman Craig Ronan Traynor Apologies Tom Costello Jim Curran John Pollock Declan Holmes

Board Member Board Member Financial Officer Commercial Director Project Accountant Board Member HSE Estates Project Director Commercial Manager

PQ BF JF NC RT TC JC JP DH


1.0 Review of the Minutes from last meetings on 26th April and 3rd May

2017

a) Action Point – CHG Lease - agreement with HSE to be finalised.

b) Action Point – Monthly Cost Reporting – RT informed the committee that the Construction Management Team are drafting a set of templates for Monthly Cost Reports which will be presented for approval by the committee.

c) Action Point – Delegated Authorities – the executive is to

finalise proposals and present at the next meeting. d) Action Point – McCann Fitzgerald – the estimate for

outstanding fees of €150k - €200k has not been updated as meeting between McCann Fitzgerald and NPH has to be held to review potential cost.

e) Action Point – Change Order Log – RT sought clarification

on the definition of “In-scope” as it pertained to the additional column to be added to the log from the committee. The committee stated that “in-scope” for this purpose meant the change order was within the scope of the overall project rather than the specific tender/contract. They requested RT provide a report on this basis for the next meeting.

f) Action Point - Independent Expert & Standing Conciliator

The committee requested that the executive ensure the scope of services associated for each of the roles is agreed with the proposed individuals, that an appropriate fee is

JF

DH / RT

JF

Richard Fitzpatrick

RT

Richard Fitzpatrick

Page 2


agreed for these including the payment mechanism with an update to the committee

The minutes of the meetings of 26th April and 3rd May 2017 were reviewed and approved.

Noted

2.0 Memorandum on Approvals &

Consent to Final Project

Brief

The committee reviewed the Update Document circulated and noted that:

- The €22m for education needs to be confirmed with the Dept. of Education and Skills;

- That this funding is a low estimate and has not been updated based on tender prices;

- The €22m has been agreed in principle by Government as it was included in the Definitive Business Case (DBC);

- The €88m for ICT funding – this is the responsibility of the CHG and the NPH can discharge its primary duties without this funding;

- The NPH needs to be cognisant of the timing of the mid-term review visa vie completion of the GMP and Phase A and moving to Phase B;

- Clarification is required around formalisation and timing of the philanthropy of €20m included in the DBC as there will be decision points to de-scope if not forthcoming; and

- CRIC – has not advanced since planning approval and the €18m cost is historical; however CRIC will be subject to a separate procurement, is a separate site and is outside the scope of the new children’s hospital.

g) Action Point – €22m funding for education – the

executive is to seek confirmation through the DoH of the funding and cash-flow from Dept. Education and Skills.

h) Action Point - €20m funding from philanthropy – letter from CHG re philanthropy to be filed and a scoping exercise to be completed on what will be shelled if this funding is not received or is delayed beyond specific decision points.

Noted

NC

NC

3.0 Change Order Log & & Update on Additional Design Team

Fees

The Change Order Log was presented to the committee. The change orders were approved. The new change orders approved are listed in Appendix 1. In-progress Change Order Log

- In-Progress Change Orders 9, 19 – 23; NC informed the committee that these relate to design team fees claims for the satellites centres and are currently being negotiated; the target is to deliver a paper with proposals on these at the next meeting.

- In Progress Change Orders 15 – 18; NC informed the committee that these relate to design team fee claims for the nch and that Linesight have made a claim of €4.2m visa vie our previous estimate of €2.2m; these claims cover Stages 2C to completion and cover prolongation, inflation and some out of scope works. The executive have a number of meetings arranged with the design teams; they will report to the committee on progress at the next meeting.

Noted

Noted

Page 3


- In relation to all the above in-progress change orders the committee requested that the NPH adhere to the terms of the ITT in their negotiations with the design teams while focusing on the inflation rates, overall CPI and labour rates as agreed.

4.0 AOB It was noted that the Board Sub-Committees need to be reviewed with a view to possible rationalisation The committee raised concern about the proposal to reduce the HSE cash-flow commitment to the NPH for 2017 and to reallocate this funding to HSE ICT capital budget to progress Tallaght ICT programme. The committee requested that the executive complete a revision of the 2017 cash-flow and that this be reviewed by the committee. i) Action Point – Cash-Flow – updated cash-flows by month

for 2017 and annually thereafter are to be presented at the next meeting.

NC informed the committee that the Fire Cert received from DCC imposes a requirement for a full sprinkler system to be installed in the nch, which would be estimated to cost €15m. This decision is being appealed which may take up to 6 months. This requirement was not expected as it had not been brought up previously by Dublin Fire Brigade (DCC) nor by the NPH Fire Consultants. The design teams will progress, based on the requirement as is, but the final decision should be known before any critical decision points. j) Action Point – Ronald McDonald House – the committee

requested that the funding approval for the basement works for Ronald McDonald House, which has been agreed in principle be confirmed.

It was noted that the CHP&P Steering Group has held its inaugural meeting.

Noted

Noted

NC / RT / Declan Holmes

Noted

NC

Noted

Next Meetings 28th June 2017 in Meeting Room 1. Herberton @ 5pm.

Page 4

Page 1

MINUTES OF MEETING


Date 28th June2017

Time 5.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Curran John Pollock Declan Holmes Jim Farragher Norman Craig Ronan Traynor Apologies Tom Costello

Board Member Board Member HSE Estates Project Director Commercial Manager Financial Officer Commercial Director Project Accountant Board Member

PQ BF JC JP DH JF NC RT TC


1.0 Review of the Minutes from last meetings on 31st May

2017

a) Action Point – CHG Lease - agreement with HSE to be finalised.

b) Action Point – Monthly Cost Reporting – carried forward, to be delivered at next meeting

c) Action Point – McCann Fitzgerald – the estimate for

outstanding fees of €150k - €200k remains, Richard Fitzpatrick has requested final bill but McCF state there is work to complete and they will then bill.

d) Action Point - Independent Expert & Standing Conciliator

The committee requested that the executive ensure the scope of services associated for each of the roles is agreed with the proposed individuals, that an appropriate fee is agreed for these including the payment mechanism with an update to the committee – carried forward to next meeting.

e) Action Point – Cash-flow – this item being carried forward

as relevant information on construction contracts, time-lines and additional design team fees are not yet finalised.

f) Action Point – Basement for Ronald McDonald House – Clarification required if Linesight construction estimates of basement under the RMHC FAU are included within the separate estimates provided to RMHC.

Post Meeting Note – Linesight costing includes for €795k net of VAT and inflation for Ronald McDonald House Basement.

JF

DH / RT

Richard Fitzpatrick

Richard Fitzpatrick

NC / DH

JP / NC (completed)

Noted

Page 2


The minutes of the meetings of 31st May 2017 were reviewed and approved.

Noted

2.0 Change Order Log & & Update on Additional Design Team

Fees

The Change Order Log was presented to the committee. The change orders were approved. The new change orders approved are listed in Appendix 1. In-progress Change Order Log - Update In Progress Change Orders 15 – 18; JP provided a report on the status of the design team’s claims at 28th June 2017 which is appended to these minutes (Appendix 2). Subject to clarification/closing out caveats with OCSC ARUP fee claims the quantum of the Changes are approved. BDP requires further negotiations as there is a considerable gap between the parties; Linesight - It was noted that the amount claimed by Linesight was significant and required a meeting between the 2 organisations at a senior level to progress. In-Progress Change Orders 9, 19 – 23; DH provided a report on the additional design team fees for the satellites. The claims are expected to exceed the provision in place of €720k, however this includes out of scope works prolongation associated with the crèche and decant which exceeded the Technical Requirements performance periods which led to a significant increase in scope on behalf of the design team:

- HLM/Coady have submitted a claim but with insufficient detail for Executive to consider.;

- Turner & Townsend have agreed a claim of €135k, the committee approved this claim;

- Ethos – they have refused initial offer and NPH awaiting a further response/ engagement.;

- ROD – submission received but no meetings to date, but a resolution is expected

- FCC – no submission received yet. The Committee confirmed their agreement on the approach adopted by the Executive in terms of adopting CPI for inflation purposes as per the contract.

Noted

Noted

Noted

Noted

3.0 Review of Finance Sub-Committee Terms of

Reference (TOR)

The revised terms of reference for the committee were presented. It was agreed that they would be reviewed once TOR for the construction committee have been finalised and our TOR updated for the impact of this. g) Action Point – Construction Committee TOR to be presented

at next finance sub-committee meeting. Both committees, or members of both to meet for detailed discussions on the TORs. The Committee requested that the Finance Officer be added as a member of the Construction Committee to provide a link to the two committees

Noted

DH / JF

4.0 AOB It was noted that Arthur Cox have agreed to a settlement offer for outstanding work of €69k as approved at 2nd December 2014 finance committee meeting. The committee approved this for payment.

Noted

Next Meetings 26th July 2017 in Meeting Room 1. Herberton @ 4pm.

Page 3

Page 1

MINUTES OF MEETING


Date 2nd July 2018

Time 2.00pm


Present


Paul Quinn (Chairman) Tom Costello Brian Fitzgerald John Pollock Declan Holmes Jim Farragher Phelim Devine Ronan Traynor Michael Kelly (part – Change Orders 229 & 243) Apologies Jim Curran Norman Craig Richard Fitzpatrick

Board Member Board Member Board Member Project Director Commercial Director Financial Officer Design Director Project Accountant Commercial Manager HSE Estates Commercial Advisor Director for Programme Management

PQ TC BF JP DH JF PD RT MK JC NC RF



last meeting on 25th April 2018

The committee approved the minutes from the previous meeting. Action Points from last meeting: Cash-flow & Budget Update – This will be dealt with as an agenda item.

a) Action Point - BDP and EDMS Fees – PD is to present

a paper on the options available to the NPH to resolve this issue at the next meeting, paper to be circulated in advance.

Independent Expert – This will be dealt with as an agenda item.

b) Action Point – Insurance claim O’Reilly Ave. – this is ongoing and committee will be updated further at the next meeting.

Noted

Noted

PD

Noted

JF


The Change Order Log was presented to the committee. There were 6 Change Order Nos 226 to 229, 242 and 243 and 16 Reverse Change Orders Nos 83, 85, 99, 123, 15 and 231 to 241 as detailed in Appendix 1.

Noted

Noted

Page 2


i. Change Order 229- The committee were informed that Change Order No. 229 for Moston for Aspergillus re-instatement works at Connolly would represent best value. Moston have quoted €259k with potential savings as the BAM works would be completed earlier than planned and lead to savings on replacement of filters. The committee proposed to recommend the change order to the Board for approval. It was noted that Early Warning Change Order IP42 for similar works for Tallaght was quoted at €330k and that the total change orders for these works would be below the 50% threshold and the works are in line with the original tender.

ii. Change Order 243 – BAM for Nurse Call Installation works – works transferring from Mercury to Patrick Lynch, as electrical sub-contractors to BAM, reducing costs to €750k from €819k creating a saving of €69k. The budget is to be updated to reflect this change. The committee proposed to recommend the change order to the Board for approval.

iii. Change Order 228 – CRIC – this build is not part of main contract however works are urgent. HSE have agreed that NPH should carry out the works using current funding and that the CHG would refund costs in time, Capital Project Team from CHG have also agreed to this. The committee proposed to recommend the change order to the Board for approval.

c) Action Point - The committee requested that the NPH invoice the CHG for this and for Artwork paid for on CHG’s behalf and that the committee receive a quarterly update on a debtor’s ledger.

iv. Change Order 226 – MKM – this was discussed at our last meeting and noted by the committee.

v. Change Order 242 – MKM – the executive updated the committee on the increased scope of services due to the change in approach on GMP where the expert is to make determinations that are binding on all packages rather than the previous approach of opinion on matters in dispute. The committee proposed to recommend it to the Board for approval however they requested that the executive document, for the record, how the new process was developed since the last Finance Committee Meeting.

d) Action Point – Executive to prepare detailed plan and

timeline on how the proposed GMP will be agreed and finalised.

e) Action Point – the committee requested to be updated if timelines for GMP are slipping beyond August.

RT

DH

DH

Page 3


Change Orders 228, 229, 226 & 242, 243 are proposed for recommendation by the Committee to the Board for approval.

Noted

3.0 Cash-flow and Budget Update

The committee were provided with a cash-flow re-forecast showing expected spend is in line with HSE funding for 2018. A paper on the overall Budget was presented to the committee. The committee was informed that a full budget update would be provided at the August meeting with a definitive update for the September Board meeting. This update would then be circulated to Government for decision on Phase B by the end of October. It was noted that the executive have requested that BAM provide information on which works may need to be moved from Phase B to A, in order to protect the critical path, by the end of next week.

Noted

Noted

Noted

Noted

4.0 AOB f) Action Point – The committee requested that they receive an overall Cost Report on the Project Costs/Commitments and Budgets at the next meeting.

DH

Next Meeting 25th July 2018 in Boardroom, Herberton @ 2pm

Page 4

Page 1

MINUTES OF MEETING


Date 26th July 2017

Time 4.00pm


Present


Tom Costello Brian Fitzgerald (Chairman) Jim Curran Jim Farragher Norman Craig Richard Fitzpatrick Ronan Traynor Apologies Paul Quinn John Pollock Declan Holmes

Board Member Board Member HSE Estates Financial Officer Commercial Director Director for Programme Management Project Accountant Board Member Project Director Commercial Manager

TC BF JC JF NC RF RT PQ JP DH


1.0 Review of the Minutes from last meetings on 28th June

2017

a) Action Point – CHG Lease – the executive stated that agreements with the HSE and CHG are progressing and will be finalised within the next 2 to 3 months.

b) Action Point – Monthly Cost Reporting – format of reports from Finance Dept. have been finalised; these will be delivered to Project Team who will supply the board and the committee with Monthly Capital Reports. The first full reports will be supplied by DH in Sept. 17. NC stated that a full report on Enabling Works will be provided at the next meeting.

c) Action Point – Basement for Ronald McDonald House

(RMH) – the committee requested an updated briefing note be provided on the executive’s position on RMH basement. It was noted that the position of HSE Estates is that the €1m for the RMH basement was included in the funding requirement for the nch and that if the RMH basement is excluded funding will be cut by this €1m.

The minutes of the meetings of 28th June 2017 were reviewed and approved.

JF

DH / NC

JP

Noted

Noted

Page 2



The Change Order Log was presented to the committee: - Change Orders 179a & 181 were approved; - Change Orders 179b and 180 have been approved by

the Board on 5th July 2017; and - Change Orders No. 182 – 184 relate to interim fees being

paid to the design team for settlement of claims. The committee noted these payments.

d) Action Point - “Early Warning” Change Order Log –

TC requested that “In-progress” be replaced with “Early Warning” in describing these potential change orders.

Copies of the new change orders and early warning change orders sheets are included in Appendix 1.

Noted

RT (completed)

Noted

2.2 Additional Design Team Fees – nch

BDP - It was noted that a meeting with BDP arranged for 26th July to discuss their claim for additional fees was postponed as the executive had to attend the High Court; the meeting is to be rescheduled. Linesight – the executive expect to put forward a proposal to the committee at the next meeting. No offer has been made by the executive and no negotiations have been entered into to date. Linesight are to revert to the executive on details of the team and resources employed to back-up their claim; the executive will review this prior to any negotiations/offer. It was noted that all members of the design team for the nch continue to meet all their contract obligations and commitments.

Noted

Noted

Noted

2.3 Additional Design Team

Fees – Satellites

T&T – this claim has been resolved Ethos / HLM Coady / ROD – offers have been made to each of these organisations but settlements have yet to be agreed. It was noted that all members of the design team for the satellites continue to meet all their contract obligations and commitments.

Noted

Noted

Noted

3.0 Independent Expert & Standing

Conciliator update

It was noted that hourly/daily rates, discounts and expected number of days engagement have been agreed with the Independent Expert & Standing Conciliator by the executive. These rates have been bench-marked to ensure they are reasonable and are in line with current market rates. e) Action Point – the committee requested that the executive

provide a brief detailing the above and a process to monitor cost.

Noted

RF

4.0 McCann Fitzgerald

(McCF) Fee Update

The executive informed the committee that McCF have claimed €142k of additional fees for work on contracts for the nch and satellites, including the retendering of the lifts; a detailed breakdown of this claim has been provided. f) Action Point – the committee requested that the executive

carry out a forensic examination of this claim prior to agreeing

Noted

RF

Page 3


any claim, and to circulate an analysis of this to the committee.

In addition to the above claim the executive expect a further claim of between €150k to €175k for further work on contracts. g) Action Point – The executive are to review these additional

claims and to provide the committee with an analysis and recommendations on them.

It was also noted the McCF will have legal fees for the current High Court action. The committee enquired whether any of these additional claims will impact on the budget; the executive confirmed there will be no impact on the budget.

Noted

RF

Noted

Noted

5.0 AOB Terms of Reference The Terms of Reference (TOR) for the committee have yet to be finalised; this cannot be completed until the Construction Committee TOR have been agreed; Tim Boucher Hayes (TBH) and Paul Quinn (PQ) are to meet in August to progress this. h) Action Point – PQ to arrange to meet TBH. Forecast The executive presented a draft Forecast to the committee. This forecast is a draft and is subject to change as the main contracts have yet to be agreed. It was noted that:

- the increase in the Design Team Fees from the original Forecast includes settlements for additional fee claims;

- the increase in Decant Costs is due to delay in payment for works completed in 2016 and rolled forward to 2017. The total of €16m for Decant Costs will be maintained;

- the construction costs for the car park previously noted as a separate line item and now incorporated into the main contract, project code “08”; and

- The 2017 Forecast has been amended to show a total of €67.9m for the year, this being a spend of €69.4m less €1.5m being rolled forward to 2018.

i) Action Point – the executive is to provide an updated

Forecast for 2017 and for 2018 to completion of the project once the main contracts have been agreed.

Main Contract Negotiations The Chairman of the Board informed the Committee on the current status of the signing of the main contract and alignment of the program. He also outlined the construction program and the process to finalise the construction costs. It was also agreed to proceed with the award of the construction contract and while there were some cost differences they were

Noted

PQ

Noted

Noted

NC / RT

Noted

Noted

Page 4


not considered material. It was also noted that CHG was also aware of the matter.

Next Meeting 30th August 2017 in Meeting Room 1. Herberton @ 5pm.

Page 5

Page 1

MINUTES OF MEETING


Date 1st August 2018

Time 3.45pm


Present


Paul Quinn (Chairman) Tom Costello Brian Fitzgerald John Pollock (by phone) Declan Holmes Jim Farragher Phelim Devine Ronan Traynor Jim Curran Norman Craig Richard Fitzpatrick Apologies

Board Member Board Member Board Member Project Director Commercial Director Financial Officer Design Director Project Accountant HSE Estates Commercial Advisor Director for Programme Management

PQ TC BF JP DH JF PD RT JC NC RF



last meeting on 2nd July 2018

The committee approved the minutes from the previous meeting. Action Points from last meeting:

a) Action Point - BDP and EDMS Fees – BAM confirm they are unable to transfer to our system, options are for NPH to migrate to BAM system or proceed as is, paper to be presented at next meeting.

b) Action Point – Insurance claim O’Reilly Ave. – this is

on-going and committee will be updated further at the next meeting.

c) Action Point – Overall Cost Report for the Project including Costs/Commitments – DH to present a detailed report at next meeting

Noted

PD

JF

DH


The Change Order Log was presented to the committee. 2 early warning change orders were noted by the committee, No. IP 43 and 44, both for BDP, no quantum for these currently available.

A copy of the new change orders sheet is included in Appendix 1

Noted

Noted

Noted

Page 2


3.0 Actions if any from the Joint Construction and Finance

Sub-Committees

Meeting

Refer to minutes of that meeting.

Noted

4.0 AOB The committee requested that the executive prepare a cash-flow for 2019 to be presented at the next meeting. The executive confirmed that Linesight would be asked to interrogate the construction cash-flow element for 2019 and the executive is to then validate same.

d) Action Point – Cash-flow for 2019 - to be presented at next meeting

BF stated that he and JF are in discussion with the C&AG to finalise a clause on a post balance sheet event in the statutory accounts and this should be finalised within the week.

Noted

NC / DH

Noted

Next Meeting TBC

Page 3

Page 1

MINUTES OF MEETING


Date 25th October 2017

Time 4.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Curran Tom Costello (by phone – part) John Pollock Norman Craig Declan Holmes Jim Farragher Richard Fitzpatrick Ronan Traynor Apologies

Board Member Board Member HSE Estates Board Member Project Director Commercial Advisor Commercial Director Financial Officer Director for Programme Management Project Accountant

PQ BF JC TC JP NC DH JF RF RT



last meeting on 27th September

2017

a) Action Point – CHG Lease – HSE requested an amendment in relation to service charges; lease amended and resubmitted for approval. JF to follow up.

b) Action Point – Principals Meetings and the Project Board

Meetings - the executive is to provide the committee with documentation on the role of each meeting, arrangements for meetings, membership of the meetings and relationship between the two meetings. Carried forward from last meeting.

c) Action Point – Sign-off Process – It was noted that the process for approval of change orders between the Finance Sub Committee and Construction Sub Committee needs to be finalised to avoid duplication/repetition.

PQ and Tim Bouchier-Hayes (TBH) to arrange Joint meeting of the committee members to agree this process.

The minutes of the meetings of 27th September 2017 were reviewed and approved.

JF

RF / DH

PQ / TBH

Noted

Page 2



Eilish Hardiman was invited to the meeting and she presented a paper in relation to Change Order 192 in relation to the expansion of Clinical Commissioning Services within the Linesight vendor contract. It was noted that the scope of services included in the Change Order related closely to those of the original tender and represented value for money. The committee approved Change Order 192. It was noted that documentation supporting Change Order 193, which was approved at the last meeting, was circulated as requested to committee members. The Change Order Log was presented to the committee. Change Orders 194 and 196 were noted. (Change Orders 195, 197 to 200 (which were Design Change Requests No.s 4, 5, 11 & 13) were approved at the last board meeting). d) Action Point – The committee requested that the executive

request Phelim Devine to attend the next Finance Sub Committee meeting to discuss whether any further expert costs in relation to review of specialist areas are expected to be raised as change orders.

Early Warning Change Order IP32 for BAM (Change Order 201) was presented to the committee and was discussed. The committee requested that this be raised as a Purchase Order directly with Atkins. e) Action Point – RT to raise PO for Atkins. Early Warning Change Order IP34 (Change Order 202) was presented to the committee as, for the amended amount of €225,000. The executive requested that this Change Order be expedited for approval and it was approved by the committee. It was noted that the Change Order should to be fully documented and signed off by the executive. f) Action Point – Change Order 202 to be completed with full

back-up and be signed off by the executive. A copy of the new change orders sheet and early warning change orders sheet is included in Appendix 1. The committee are recommending that the Board approve the Change Orders that exceed €100k as follows:

- Change Order 192 for €264,613 for Linesight - Change Order 202 for €225,000 for BAM.

Noted

Noted

Noted

RT / PD (completed)

Noted

RT

Noted

RT / DH (completed)

Noted

Noted

2.2 Design Team Fees Update

It was noted that the executive presented a comprehensive report in relation to the settlement of all the additional fees agreed with the design team and that the overall fees as a percentage of the contract value represent good value.

Noted

Page 3


g) Action Point – The committee requested that individuals named in the report be removed as it is the role and scope of services which is relevant.

NC

3.0 Finance Sub Committee Terms of

Reference Update

The updated Terms of Reference for the Finance Sub Committee were noted by the committee.

Noted

4.1 Cost Reporting Update

The executive provided a presentation on the Monthly Cost Report and some early M & E trends. The committee requested that the Cost Report be circulated to committee members, in a secure manner, in advance of the meeting to allow for their perusal and that a copy of the report for this meeting be circulated. h) Action Point – the executive are to circulate copy of the

report presented at the meeting to committee members.

Noted

Noted

DH

(completed)

4.2 Cash-flow Update

The updated cash-flow forecast for 2017 was presented to the committee. As a result of a reduction in expected design team fee expenditure in 2017 there was a short-fall visa-vie the target spend. i) Action Point – The committee requested that the executive

report at the next meeting their plan and an updated cash-flow to meet the target spend for 2017.

The multi-year cash-flow was presented to the committee. It was noted that there is a short-fall in 2018 between the funding currently being provided by the HSE and the projected spend. j) Action Point - the Executive will update the overall cash flow

upon receipt of the Contractor’s 60 day Contractual Programme which will highlight the issue between the funding and projected spend for 2018 and agree a strategy in relation to same and report at the next meeting.

Noted

RT / DH

Noted

Executive

5.0 McCann Fitzgerald Fees

The executive provided a report to the committee in relation to additional fees to McCann Fitzgerald (McCF) for procurement services on the main contract. The executive indicated the amount McCF have advised as fees incurred, the current estimate by NPH of expected fees, and the delta. It was noted that the executive have communicated that McCF have been advised that the figure they have provided is regarded as unrealistic and they have acknowledged same, particularly as McCF did not advise NPH of the additional fees on a timely basis. It was noted that further work needs to be completed to review these fees and then negotiations can begin with McCF and if no resolution can be reached it would be referred for conciliation. It was also noted that the quality of the service provided was excellent.

Noted

Noted

Noted

Page 4


The executive stated that the plan is to close this matter out in November 2017 to include all fees due to the present time. It was also noted that the executive should now retender for legal services relating to construction phase.

Noted

Noted

AOB N/a

Next Meeting 29th November 2017 in Meeting Room 1. Herberton @ 4pm.

Page 5

Page 1

MINUTES OF MEETING


Date 30th August 2017

Time 5.00pm


Present


Paul Quinn (Chairman) Tom Costello (part) Brian Fitzgerald Jim Curran (by telephone) John Pollock Declan Holmes Jim Farragher Richard Fitzpatrick Ronan Traynor Apologies Norman Craig

Board Member Board Member Board Member HSE Estates Project Director Commercial Director Financial Officer Director for Programme Management Project Accountant Commercial Advisor

PQ TC BF JC JP DH JF RF RT NC


1.0 Review of the Minutes from last meetings on 26th July

2017

a) Action Point – CHG Lease – the lease has been agreed as is awaiting HSE approval.

b) Action Point – Monthly Cost Reporting – the first completed reports will be presented at the meeting on 27th Sept. 2017

Basement for Ronald McDonald House – the executive confirmed that the basement of Ronald McDonald is included in the funding allocation to the NPHDB. Action Items e) to h) will be dealt as agenda items at this meeting. Action Item i) from the last meeting re Forecast for 2017 & 2018 was discussed. Detailed construction cash-flow/updated Report on Tenders from Linesight to be received before NPH cash-flow can be completed including risk items. c) Action Point – Forecast – The executive is to provide a

revised cash-flow forecast for 2017 & 2018 to finance sub committee members in advance of the 14th September 2017 Children’s Hospital Programme & Project Board (CHP&P) Meeting and provide the forecast at this meeting.

JF

DH / NC

Noted

Noted

Noted

DH / NC

Page 2


JC also stated that the HSE will require the 2018 Forecast for inclusion in the estimates for 2018; and a forecast from the full cost of the project to completion, and if the €983m is likely to be exceeded that the DoH be advised of this at the CHP&P meeting on 14th Sept 2017. The executive stated that this would be reviewed after the Board Meeting on 6th Sept 2017. The Commercial Director confirmed that the expenditure of €67m for 2017 will not have any significant under or overspend despite the delay in construction start-up. This is due to a number of factors including the additional design team fees being paid and that BAM expect higher production rates than initially expected in the initial phase of development. The minutes of the meetings of 30th July 2017 were reviewed and approved.

Noted

Noted


The Change Order Log was presented to the committee: - Change Orders 185 to 187 for BDP were reviewed and

approved by the committee - Early warning Change Order IP27 & IP28 were noted; re

IP27 the executive have requested a detailed breakdown of how the bill was arrived at.

- also noted was a Change Order to be prepared for agreed additional design team fees for Ethos €215k.

- It was also noted that the committee agreed that the executive can agree additional design team fees of up to €125k for ROD.

- IP24 for €15m for the sprinkler system in nch was discussed. An Bord Pleanala need to appoint an expert to review the Fire Service correspondence; it is not expected that a decision on NPH appeal will occur until approx. Dec ’17.

It was noted that the change orders for BDP have approached 50% of the contract value. d) Action Point – further change order for BDP and CHG –

the committee asked that the executive confirm that there shall be no more change orders raised with BDP for the CHG over and above those already agreed.

Copies of the new change orders and early warning change orders sheets are included in Appendix 1.

Noted

Noted

RT / Phelim

Devine

2.2 Additional Design Team Fees – nch

It was noted that negotiations on additional design team fees for Linesight have not progressed as Linesight have been requested to provide a proposal on their team prior to further engagement on fees. e) Action Point – Additional Design Team Fees – the

committee requested that the executive provide a completion report detailing all additional design team fees once all resolved.

Noted

NC / JP

Page 3


2.3 Additional Design Team

Fees – Satellites

It was noted that negotiations with HLM on additional design team fees for the satellites are protracted and are proving difficult and that the executive is awaiting feedback from them. It was also noted that Coadys are carrying out the required works and are fulfilling their obligations.

Noted

3.0 Standing Conciliator & Independent

Expert update

Standing Conciliator The executive confirmed that the Standing Conciliator has been appointed. He has agreed to provide back-up timesheets with all invoices. The contract is for the full period of the build but is subject to review after year 1. He will have 2 roles:

- He is to chair the Project Board meetings; the purpose of these meetings will be to try to resolve conflicts; after the initial meeting further meetings will be held as required; and

- He will act as a conciliator between NPHDB and BAM – the costs of these services are to be split 50/50.

The committee requested more detail on the relationship between the Principals Meetings and the Project Board Meetings. f) Action Point – the executive is provide the committee with

documentation on the duties of each meeting, arrangements for meetings, membership of the meetings and relationship between the two meetings.

Independent Expert The executive confirmed the appointment of the Independent Expert; this appointment completes at the end of Phase A of the project. His role includes being final arbiter on GMP; his decisions are binding on both the NPHDB and BAM. The committee noted the appointment of both these roles.

Noted

Noted

RF

Noted

Noted

4.0 McCann Fitzgerald

(McCF) Fee Update

g) Action Point – McCF fees - The detailed review of McCF fees will be supplied at the next meeting.

RF

5.0 Construction Sub Committee

Terms of Reference

PQ met with Tim Boucher-Hayes (TBH) in relation to the Construction Committee Terms of Reference (TOR). TBH is to issue redrafted TOR.

h) Action Point - Committee TOR – Finance Sub Committee

TOR to be amended to co-ordinate with Construction Sub Committee TOR.

i) Action Point – Committee Meetings – Alignment of the timing of the Construction Sub Committee meetings and Finance Sub Committee Meetings to be reviewed; however for the present the Finance Sub Committee will continue to meet on the last Wednesday of the month at 5pm

PQ / JF

PQ / JF

Noted

AOB The Chairman of the Board provided an update on the main contract negotiations including in relation to prolongation and alignment of the contracts with the sub contractors. These issues

Noted

Page 4


have been resolved and the contract has been signed. The committee agreed that we are committed to the contract as signed. j) Action Point – Contract Award – the committee requested

that the executive provide a detailed breakdown of contract award amount and details on the additional risk items for the next meeting.

DH

Next Meeting 27th September 2017 in Meeting Room 1. Herberton @ 5pm.

Page 5

Page 1

MINUTES OF MEETING


Date 5th September 2018

Time 3.30pm


Present


Paul Quinn (Chairman) Tom Costello Brian Fitzgerald John Pollock Declan Holmes Jim Farragher Phelim Devine Ronan Traynor Jim Curran Norman Craig Richard Fitzpatrick Ger Madigan Apologies

Board Member Board Member Board Member Project Director Commercial Director Financial Officer Design Director Project Accountant HSE Estates Commercial Advisor Director for Programme Management Project Manager

PQ TC BF JP DH JF PD RT JC NC RF GM



last meeting on 1st August 2018


a) Action Point - BDP and EDMS Fees – This is being tracked through the Balance Sheet meeting – carry forward

b) Action Point – Insurance claim O’Reilly Ave. – claim

is progressing – carry forward.

c) Action Point – Overall Cost Report for the Project including Costs/Commitments – this is to be presented at today’s Board meeting.

d) Action Point – Agenda and Items to be circulated – the Committee requested that the Project Cost Report be an on-going agenda item and a copy of the report is to be circulated at least 2 days in advance of each meeting.

e) Action Point – Cash-flow for 2019 – the committee was informed that the 2019 cash-flow has been amended and reduced for 2019 by €8m in conjunction with revised

Noted

PD

JF

DH

RT / DH

DH

Page 2


cash-flow from BAM. A copy of this is to be sent to the committee members after the meeting


The Change Order Log was presented to the committee. 3 change orders were presented to the committee exceeding €100k which required their recommendation to be brought by them to the Board Meeting, No.s 245, 252 & 251. The committee approved this decision. It was noted that these change orders were included in the revised costs presented at the last meeting.

f) Action Point – Report and Timeline - The committee requested that the executive complete a report on the issues leading to the requirement for these change orders and similar early warning change orders and provide the committee with a timeline for delivery of this report. The executive is also to identify any possible actions to be taken to mitigate cost and the accountable parties. GM to write the report and RF to contact legal advisors on PI issue.

Change Orders 244, 246 and 247 for BDP bring the total cumulatively over €100k and required the approval of the committee and this approval was given Change Order 248 for OCSC brings the total cumulatively over €100k and required the approval of the committee and this approval was given A copy of the new change orders sheets is included in Appendix 1.

There are 3 Change Orders requiring recommendation by the Committee to the Board for approval, No.s 245, 250 & 251.

Noted

GM / RF

Noted

Noted

Noted

Noted

3.0 AOB The committee noted that the MES Business Case was not approved by this committee nor the procurement committee and does not have Board approval. They noted that both these committees should review this document.

g) Action Point – Meeting on MES Business Case – The committee is to either have this item on the agenda for the next meeting or a separate meeting should be arranged for the discussion of this item if approval is required earlier.

Post Meeting Note – MES Business Case will be an agenda item for meeting on 26th Sept.

Noted

JP / RT

Next Meeting 26th September 2018 @ 2pm, NPH Boardroom

Page 3

Page 1

MINUTES OF MEETING



Time 2.00pm


Present


Paul Quinn (Chairman) Tom Costello Brian Fitzgerald (by phone) Phelim Devine Ronan Traynor Norman Craig Richard Fitzpatrick Ger Madigan (part) Fran Hegarty (Item 5 only) Ben Warner (Item 5 only) Apologies John Pollock Declan Holmes Jim Farragher Jim Curran

Board Member Board Member Board Member Design Director Project Accountant Commercial Advisor Director for Programme Management Project Manager Healthcare Technology Officer EY Project Director Commercial Director Financial Officer HSE Estates

PQ TC BF PD RT NC RF GM FH BW JP DH JF JC



last meeting on 5th September

2018


a) Action Point - BDP and EDMS Fees – PD confirmed this item is paused while GMP being finalised, item to be carried forward.



c) Action Point – Cash-flow for 2019 – carried forward to next meeting; a copy of this is to be sent to the committee members after the meeting.

d) Action Point – Report & Timeline on Claims on Satellite Centres – T&T have provided a report but GM unhappy with detail as report vague on responsible parties. The committee requested that GM finalise and circulate the report as a matter of urgency.

Noted

PD

JF

DH / RT

GM


The Change Order Log was presented to the committee.

Noted

Page 2


Early Warning Charge Order IP53 BDP – claim made for €47k. PD has requested a meeting as unhappy with claim and other potential claims by BDP.

e) Action Point – PD to meet with BDP and report to committee.

RF informed the committee that there is a requirement to extend the services of the BIM specialist through Linesight for a total of 4 months at €25k per month. This cost will be offset against the budgeted costs of the Construction Management Team. PD noted the justification for the extension was to assist in the close out of the BIM Model compliance with our contractual obligation. Currently part of Contractor submissions for additional cost.

f) Action Point – RF to raise a Change Order for BIM Specialist and RT to process for approval.

Early Warning Charge Order IP54 Ethos – the committee were informed that additional Resident Engineer services are required at Connolly to stabilise and mitigate potential delays and that the committee would be provided with more detail and costings at the next meeting.

g) Action Point – GM to provide an update and costings at the next meeting.

The Committee requested that the Executive respond to the Board regarding the fitness for purpose of the Design Team going forward in line with the original Vision for the Project. This includes a review of their scope of services, the appropriate Design Team structure in response to these services, and any consequent additional fees required. TC noted that the fees originally bid for the project are not sustainable in the current market. PD noted that the Inflation clause in the contract based on CPI did not reflect wage inflation in the industry which is generally aligned to construction inflation. PD noted that the likely mechanism under the contract was to deal with the fee issue through conciliation.

h) Action Point – the Executive are to review the mechanisms under the contract regarding fees and are to report the proposed solution to the Joint Construction and Finance Sub-Committee Meeting on revised date of 22nd October at 2pm. The Executive are to engage with the Design Team regarding the appropriate scope of services and structure to deliver the next stages of the project.

i) Action Point – PD to request Elaine O’Rourke to move the Joint Construction and Finance Sub-Committee Meeting from 18th to 22nd October at 2pm and have John Cole invited.

Early Warning Charge Order IP52 BAM – for construction of Tallaght Transformer – GM presented a paper on this to the committee. The committee were concerned around the requirement for these works and cannot agree to them at this time. The Committee felt that the Tallaght position not to facilitate

Noted

PD

Noted

RF / RT

Noted

GM

Noted

PD

PD

Noted

Page 3


the monitoring of the substation to prove whether it has or has not the capacity for the Outpatient and Urgent Care Centres was not acceptable.

j) Action Point – BF to meet with the CEO of Tallaght Hospital to discuss issue

k) Action Point – PD/GM to propose a 6-month monitoring

survey be carried out in Tallaght over the winter months to establish usage levels. GM to request again from Tallaght usage records for the substation.

There are no Change Orders requiring recommendation by the Committee to the Board for approval.

BF

PD / GM

Noted

3.0 Blackrock Expert Services

Appointment

RF presented a paper on the appointment of Blackrock Expert Services and noted it will be included on the 40.02 Report. The committee requested information on the commercial terms prior to approval; RF is to provide detail at the next meeting along with a defined scope of services and details on contract management. The lump sum fee for the review of the Drimnagh Sewer has already been approved.

l) Action Point – RF to provide details on daily / hourly rates, scope of services and details on contract management.

Noted

RF

4.0 Proposed Purchase Order for Pre-Phase B

Works

NC presented a paper on the requirement for a purchase order for BAM on pre-phase B works. The committee queried whether this would exceed the €82m - €84m approved by the HSE in the letter.

m) Action Point – the Executive are to seek clarification from the HSE on approval for spending in excess of €82m - €84m to cover pre-phase B works.

Noted

NC

5.0 MES Business Case Review

EY presented a paper on the MES Cost Benefit Analysis and details of their meeting with DPER. The committee stated that DPER need to confirm their feedback and approval regarding the content before the revised final document can be brought to the NPH Board for approval. It was noted that it is unlikely that the CBA will be amended prior to the October Board Papers being released and that the “Conclusions” page from the presentation be included in the October Board papers. EY confirmed that once DPER confirm in writing the interest rates to be used EY will finalise their paper. It is likely following this that there will be very little between the three options from a financial evaluation perspective. The decision will be likely made on the risks and benefits set out in the CBA and Business Case. The committee concluded based on the presentation that the MES with/without finance was an acceptable procurement model for the selected equipment in the hospital.

n) Action Point – EY to finalise paper and provide “Conclusions” page to the Executive for inclusion in October Board papers. Approval of the CBA will be sought from the NPH Board.

Noted

BW / FH / PD

Page 4


6.0 AOB n/a

Next Meeting 31st October 2018 @ 2pm, NPH Boardroom

Page 5

Page 1

MINUTES OF MEETING



Time 5.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald Jim Curran John Pollock Norman Craig Declan Holmes Jim Farragher Ronan Traynor Apologies Tom Costello

Board Member Board Member HSE Estates Project Director Commercial Advisor Commercial Director Financial Officer Project Accountant Board Member

PQ BF JC JP NC DH JF RT TC


1.0 Review of the Minutes from last meetings on 30th August

2017

a) Action Point – CHG Lease – the lease has been agreed and is awaiting HSE approval. The Chair asked JC to see if he could check the progress of the approval.

It was noted that the Executive informed the CMP & P Board of the current costs estimates. It was also noted that the CMP & P Board stated that the Executive cannot rely on getting additional funding should this be required and should look at alternative de-scoping on the project/contingency plan in such an eventually. The possible options of Project Descoping is currently being undertaken by Linesight. It was noted that the outcome of the CMP & P regarding the cost update should be brought to the October Board for decision on how to proceed. b) Action Point – Principals Meetings and the Project Board

Meetings - the executive is to provide the committee with documentation on the duties of each meeting, arrangements for meetings, membership of the meetings and relationship between the two meetings. Carried forward from last meeting.

JF/JC

Noted

Noted

Noted

RF

Page 2


c) Action Point – McCF fees - A detailed review of McCF fees will be supplied at the next meeting. Carried forward from last meeting.

The minutes of the meetings of 30th August 2017 were reviewed and approved.

RF

Noted


The change order log was presented to the committee. Change Orders 188 to 191 were approved. 2 Early Warning Change Orders No.s IP29 & 30 were noted. Change Orders 192 and 193 were reviewed and further details were requested by the committee. d) Action Point – Change Order 192 - the details of this change

order to be updated by Eilish Hardiman (EH) and be presented to the committee.

e) Action Point – Change Order 193 was reviewed. It was agreed that the committee would approve this change order as a variation to the QS Design Team Contract. The fee is required to be benchmarked against similar consultants in the industry and a reconciliation of the scope of service needs to demonstrate that it is in addition to the Contracted QS Team engagement. These documents should be circulated to committee members in the coming days; the change order may then be regarded as approved and this should be noted at our next meeting.

Additional Change Orders from the Construction Sub Committee Change Order Log were presented including 4 requiring approval of the Finance Sub Committee, these being part of the Early Warning Change Order No. IP 24 previously advised to the Committee. These were numbered No.s 4, 5, 11 & 13. The Committee approved these change orders. The Committee also noted change orders No.s 7A to 9H and No. 14 as approved by the Construction Sub Committee and reflected on the Change Order Log. f) Action Point – Sign-off Process – It was noted that the process for approval of change orders between the Finance Sub Committee and Construction Sub Committee needs to be finalised to avoid duplication/repetition.

PQ and Tim Bouchier-Hayes (TBH) to arrange Joint meeting of the committee members to agree this process.

For urgent Change Order approvals over 100K it was noted that the executive has the authority to proceed on the basis that these change orders will be presented to the committee monthly and there is a risk that they may not get approved by Finance Subcommittee. There is no delegation of authority for an individual member of the Finance Committee to sign on behalf of the Finance Subcommittee between meetings.

Noted

Noted

JP / EH

DH

Noted

Noted

Noted

PQ/TBH

Noted

Page 3


The committee requested that, while they are not required to approve change orders that are within the Construction Subcommittee’s remit they should be informed of them on a monthly basis. The committee requested that the Construction Sub Change Order Log be amended as follow: f) Action Point – Headings – 2nd last column be amended to

state “NPHDB Executive & Construction Sub Committee Decision” and last column to “For Recommendation”

A copy of the construction change orders and early warning change orders sheet is included in Appendix 1.

Noted

Noted

DH

Noted

2.2 Design Team Fees Update

The executive updated the committee to confirm that agreement has been reached with Linesight in the amount of €1.6m for additional fees. The committee requested that the executive prepare a comprehensive report on all the additional design team fees agreed for audit purposes. g) Action Point – Change Order - change order to be prepared

for the additional fees of €1.6m for Linesight.

h) Action Point – Report on additional fees – executive to prepare a report on all additional design team fees agreed.

Noted

NC / RT

NC / PD

3.0 Finance Sub Committee & Construction

Sub Committee Terms of

Reference (TOR) Update

It was noted that PQ, TBH, JF and DH met on 22nd Sept 2017 to discuss the TORs of the two committees and on communication between them. The committee reviewed the TORs and suggested some amendments. i) Action Point – Amendments to TORs –

i. Finance TOR – amend 8.0 from “meet at least four times a year” to “meet monthly” and add a new term that “experts may be invited to attend the meeting at the committee’s request”.

ii. Both TORs 3.0 – remove “Representing” column. It was also agreed that the meetings of the committees does not require alignment and that there would be an early morning teleconference every two weeks for the initial months to keep the Finance Committee members up to speed on any urgent issues. The Finance Sub Committee Meeting will continue to be held on Wednesday evening however it should be moved to begin at 4pm subject to confirmation. j) Action Point – Start time of Finance Sub Committee

Meeting – confirmation to be sought from members that meeting should be changed to start at 4pm instead of 5pm.

Noted

Noted

JF / EOR

Noted

RT

4.1 Cost Reporting Update

The executive presented the Cost Report providing information on what will be delivered at each meeting going forward.

Noted

Page 4


The committee requested the following be amended. k) Action Point – Packages –packages should have an

indication of the date for agreement of GMP. noted against it

l) Action Point – Delta % - in addition to showing the value of the delta the % delta also be included.

m) Action Point – Graphs – that the executive might consider

the inclusion of graphs to display the cost report information. The committee requested that the Cost Report Summary Sheet be circulated to committee members, in a secure manner, in advance of the meeting to allow for their perusal.

Noted

DH

DH

DH / RT

Noted

4.2 Cash-flow Update

The forecasted cash-flow for 2017 is currently showing an “underspend”. The committee requested that the executive update the forecast to show the full allocation to pay matured liabilities including planning fees, ESB and Gas contributions. n) Action Point – Update of Forecasted cash-flow –

executive to update to full allocation and to ensure full amount is spent by year end.

The multi-year cash-flow was presented showing the capital requirements The committee noted that funding approved is €650m with the remainder of €334m expected to be approved in the mid-term review.

Noted

JF / DH

Noted

AOB N/a

Next Meeting 25th October 2017 in Meeting Room 1. Herberton @ 4pm.

Page 5

Page 1

MINUTES OF MEETING


Date 05 November 2018

Time 2.00pm

Venue Room 2, Herberton

Present


Paul Quinn (Chairman) Tom Costello Brian Fitzgerald Phelim Devine Richard Fitzpatrick Ger Madigan (Part) John Pollock Declan Holmes Jim Farragher Jim Curran Michael Kelly (Part) Apologies Ronan Traynor Norman Craig

Board Member Board Member Board Member Design Director Director for Project Controls Project Manager Project Director Commercial Director Financial Officer HSE Estates Commercial Manager Project Accountant Commercial Advisor

PQ TC BF PD RF GM JP DH JF JC MK RT NC



last meeting on 26 September

2018

The committee approved the minutes from the previous meeting. Action Points from last meetings:

a) Action Point - BDP and EDMS Fees – PD confirmed this item is paused while GMP being finalised, item to be carried forward.



c) Action Point – Cash-flow for 2019 – carried forward to next meeting; a copy of this to be sent to the committee members after the meeting.

d) Action Point – Report & Timeline on Claims on Satellite Centres – T&T have provided a report but GM unhappy with detail as report vague on responsible parties. The committee requested that GM finalise and circulate the report as a matter of urgency.

It was agreed that the Satellite Design Team would present at the next Finance Committee Meeting reporting on all changes and

Noted

PD

JF

DH

GM

Noted

Page 2


claims that have led to the significant increase in the contract sum for the satellite centres.

e) Action Point - Early Warning Charge Order IP53 BDP –

claim made for €47k. PD has requested a meeting as unhappy with basis of claim and other potential issues with BDP. - Item to be carried forward Early Warning Charge Order IP54 Ethos – the committee were informed that additional Resident Engineer services are required at Connolly to stabilise and mitigate potential delays and that the committee would be provided with more detail and costings at the next meeting.

f) Action Point – GM to provide an update and costings at

the next meeting. - Item to be carried forward

Construction of Tallaght transformers g) Action Point – BF to meet with the CEO of Tallaght

Hospital to discuss issue (Transformer requirements) - Item to be carried forward to next meeting

h) Action Point – RF advised the NPH team has engaged in discussions with Blackrock Expert Services to agree a schedule of daily / hourly rates, scope of services and contract management arrangements depending on the extent and duration of their services. Item to be carried forward to next meeting

i) DH advised given the progress that has been made with

BAM in relation to the GMP the extent of the services required from Blackrock Expert Services will be less than previously anticipated

j) NC/DH to present a paper on the requirement for a purchase order for €7m for BAM to cover costs associated with pre-phase B/GMP activities. The committee queried whether this would exceed the €82m - €84m approved by the HSE in their letter.

k) Action Point – the Executive are to seek clarification from the HSE on approval for spending in excess of €82m – The Signed Phase A Contract Commits €84m to cover phase A works and a further €7m for the pre-phase B team. The €84m approved in the HSE letter will be breached in January 2019.

PD

GM

BF

RF

Noted

Noted

DH/NC

2.0 MES Business Case Review

The MES Business Case has been updated and finalised – copy circulated at the meeting. It was noted DPER has validated the CBA process with recommendations which are to be included in a revised CBA document and resubmitted to the Equipping Procurement Strategy Project Board.

Noted

Noted

Page 3


It was also noted the CHP&P Steering Group requested a briefing paper on the proposed governance for equipment procurement and an initial draft has been prepared and will be brought to the CHP&P Steering Group in November

Noted


The Change Order Log was presented to the committee with a total Change Order issued for the period net of vat €555,047.58. Change Order for BIM Services was reviewed at last month’s meeting and Change Order 256 has been prepared to cover these services. Change Orders 258, 259 and 260 for BAM exceed €100k in total and were reviewed. The committee reviewed the early warnings Change Order raised since the previous meeting (early warning Change Orders 56 to 62 relating to the satellite centre contract) and noted the significant value of these early warning Change Orders relative to the value of the contract. MK confirmed that the standing conciliator, Ciaran Fahy, had convened a conciliation on the issues of delays to Tallaght Hospital. A robust case was put to him by the design team and the decision is awaited on the value of the award to BAM on Wednesday 7th November (Early Warning IP60 refers) It was noted that Change Order 58 replaces Change Order 48 with an additional cost of €500k to a total cost of €2,100k. The significant increase in the cost of Satellites Construction was noted and this increase in cost will be presented by the Satellite Design Team at the next Finance Committee Meeting. (Minute 1d) above refers) CHANGE ORDERS REQUIRING RECOMMENDATION BY THE COMMITTEE TO BOARD FOR APPROVAL: -

• 256 greater than 100k

• 258,259 & 260 to BAM greater than 100k in total.

Noted

Noted

Noted

Noted

Noted

Noted

PQ

4.0 Project cost report/GMP

update

DH updated the meeting on the outcome of the GMP process which reached a conclusion on the 1st November with the final determination by the Independent Expert. The Adjusted Contract Sum together with the other project cost were compared to previous project cost projection and the Business Case from February 2017.

Based on the updated project cost the projected cash flow were reviewed and compared to the HSE Capital allocation by year.

The lessons learned from the GMP process were reviewed, as well as the possible other options to complete the project (retender, etc.).

The consequences of not instructing the Main Contractor to commence Phase B on the 3rd December 2018 were reviewed together with the cost implications.

Noted

Noted

Noted

Noted

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• Contractual compensation event if Phase B instructions is not issued by 3rd December 2018.

• Contractors have indicated that Purchase orders and subcontracts for Phase B cannot be placed and quotations will expire and are therefore no longer valid.

• Contractor will no longer stand over the tendered rates resulting in prices escalating and increased GMP

• The projected costs and the consequences of not Instructing Phase B will be shared with the CHP&P Steering Group and CHP&P Board following ratification by the Board.

The Finance Sub-Committee noted the updated overall project costs including the agreed GMP will be presented to the NPHDB Board at their 07 November meeting.

Noted

5.0 Review of Design Team

fees/ Variations

A detailed overview of additional design team fees claimed as a result of the extended GMP and overall Project duration, including the NPHDB’s view on these fees was presented.

The Design Team fees were reviewed in the context of additional scope items dealt with under the contract, and those issues that could only be dealt under conciliation as set out in the contract. The issue of inflation on the design team cost given the time that has passed since they were tendered and appointed was reviewed.

The issue of inflation on the design team cost given the time that has passed since they were tendered and appointed was reviewed.

The performance of the Design team to date was noted recognising there has been positive aspects of the team’s performance as well as the negative aspects of their performance.

The details of the changes required from the design team to successfully deliver their obligations and bring the project to conclusion were outlined including an analysis of fees to complete the project.

Noted

Noted

Noted

Noted

Noted

6.0 AOB n/a

Next Meeting 28 November 2018 @ 2pm, NPH Boardroom

Page 5

Page 1

MINUTES OF MEETING


Date 28th November 2018

Time 2.00pm


Present


Paul Quinn (Chairman) Brian Fitzgerald (by phone) Phelim Devine Richard Fitzpatrick Ger Madigan (Part) John Pollock Declan Holmes Jim Farragher Michael Kelly (Part) Ronan Traynor Norman Craig Tom Costello (Part) Apologies Jim Curran

Board Member Board Member Design Director Director for Project Controls Project Manager Project Director Commercial Director Financial Officer Commercial Manager Project Accountant Commercial Advisor Board Member HSE Estates

PQ BF PD RF GM JP DH JF MK RT NC TC JC




2018

The committee approved the minutes from the previous meeting. Action Points from last meetings:

a) Action Point - BDP and EDMS Fees – PD confirmed this item which was paused while GMP was being finalised, will be closed out in advance of the next committee meeting, item to be carried forward.

b) Action Point – Insurance claim O’Reilly Ave. –

awaiting feedback on works to be completed so it can be costed - expect to close out in 1 / 2 weeks.

c) Action Point – Cash-flow for 2019 – BAM and sub-contractors have reviewed their 2019 cash-flow which shows a slight reduction from the figures included in the GMP Report so no need to change. However, the 2020 cashflow looks significantly higher than the figures included in the GMP Report and Linesight and the 3 Contractors have been asked to review.

Noted

PD

JF

DH

Page 2


d) Action Point – BDP claim received by PD – this will be wrapped up in fee discussions to be held with them on 29th Nov 2018.

e) Action Point – BF met with the CEO of Tallaght Hospital to discuss issue (Transformer requirements) - PD & GM will action letter received from Tallaght concerning the Transformer in next 2 weeks– item carried forward to next meeting.

f) Action Point – RF confirmed that Blackrock Expert Services have agreed to a 20% reduction in daily rates against original proposal. RF to bring official proposal to next meeting for approval.

g) Action Point – the Executive will seek approval of

funding of the pre-phase B works from the HSE for €7m if Government Approval for the Phase B Instruction is not forthcoming before Xmas. The HSE has requested a funding increase application for the Satellites to be submitted to the HSE.

PD

PD / GM

RF

DH

2.0 Presentation by Satellite

Centres Design Team

The following from the Design Team attended this section of the meeting:

- Susan Cormican – Ethos - Colm Devin – Ethos - Neal Keaney – Coady’s - Donal O’Donoghue – Coady’s - Neil Orpwood – HLM - Bryn Griffiths – Turner & Townsend - Mark Coady – Turner & Townsend (Part)

The presentation covered the various areas that the claims covered, including the compensation events allowed under the contract. It was noted that the contractor has made additional claims due to delays, but the ER considers that there is no entitlement, there is no risk provision for delay in final Projection since Liquidated Damages also come into the equation. The Chair queried if the Standing Conciliator can be used to resolve these issues. Action Point h) – Executive to revert to committee members on time-frame for Conciliator to resolve these issues. It was noted that the claims from the Mechanical contractor resulted from under-measures which arose due to BIM designs not being fully complete. The incomplete design was attributed to the time pressure to get out to Tender and the Design Team used the BIM Model to speed up the quantification process however the final connections within the rooms were not in the model at that time but set out in schematics on 2D drawings. Project Director queried whether these designs assumptions were agreed between the design team prior to issuing; also noted that the risk arising from this should have been highlighted to the NPHDB.

Noted

Noted

Noted

GM / MK

Noted

Page 3


Action Point i) – The Design Team to revert on process prior to designs being signed off and issued. It was noted that the Electrical contractor claim is still being analysed. The Design Team explained that using detailed M&E BQ for Public Works was relatively new and that there was still a lot of interpretation around methods of measurement rules across several Projects at present. It was noted that the claims on Mechanical represent approx. 40% of the Mechanical contract value; that Electrical claims represent approx. 20% of the Electrical contract value; and that there is a notable difference between the original claims made by BAM/MEP Contractors and the Design Team’s final determination. The Design Team left the meeting at the completion of the presentation and the Committee reviewed the content. Action Point j) – The Committee requested that the Executive arrange a meeting with the GCCC to share lessons learnt especially as other hospital projects are currently facing similar challenges.

Design Team

Noted

Noted

Noted

Noted

NC


The Change Order Log was presented to the committee with a total Change Order issued for the period net of vat of €3,486;529. Change Orders 262, 264, 265, 268, 270 & 271 for BAM on Satellite Centres exceed €100k in total and were reviewed and were recommended for approval to the Board. It was confirmed that this brings expected spend on Satellite Centres main contracts up-to-date. The committee reviewed the Reverse Change Order 269, which relates directly to Change Orders 268, 270 & 271; Change Orders under €100k – 263, 266 & 267; and new Early Warning Change Orders IP 65 & 66. Action Point k) – The Committee requested that all change orders should include a “Yes” or “No” as to whether “Within Budget”. CHANGE ORDERS REQUIRING RECOMMENDATION BY THE COMMITTEE TO BOARD FOR APPROVAL:

- 262, 264, 265, 268, 270 & 271 – all exceed €100k.

Noted

Noted

Noted

RT

PQ

4.0 Project cost report/GMP

update

It was noted that the Executive met with the CHP&P to review the options included in the Process to GMP Report. The HSE, with external advice from PWC and Northern Ireland Estates reviewed the options. A report with a recommendation is expected shortly.

It was noted that the Executive had also met with the Dept. of the Taoiseach (DoT) & DPER and that Q4 have been updated. The DoT have suggested that there is an agreed communication strategy.

Noted

Noted

Page 4


It was noted that the Memorandum to Government is being developed.

It was noted that the Mazars Report on construction cost escalation would be presented to the Audit & Risk committee meeting on 28th November 2018 at 6pm for review.

Action Point l) – The Committee requested that a copy of the Mazars report be circulated to the Chair of the Finance sub-committee.

It was noted that JP and TC had met with the 4 main design team CEO’s on the NCH on 27th Nov 2018 to express concerns on past performance and requested they review their teams to meet the challenges for the rest of the Project.

The Change Management Process to Protect the GMP was presented to the Committee by the Executive for review. Change Management Champions have been identified by each Design Team member to highlight any potential changes before the Issued for Construction (IFC) Drawings are released to the Contractor. Any potential cost increases from GMP design must be offset by a corresponding saving.

Action Point m) –The Committee requested that any relevant findings in the Mazars Audit report be incorporated into this process; and that the Process be brought to the Board for approval.

Noted

Noted

JP

Noted

Noted

DH

5.0 AOB Design Team Payment

It was noted that the Design Team’s fee claims had not been resolved and could potentially impact performance in relation to the release of IFC information to the Contractors. ; Design Team claim they are incurring unsustainable losses on the project and claims including for inflation need to be addressed, through conciliation.

The Executive requested that payments of circa €3m be made to the Design Team pre-Christmas to settle claims including scope changes and prolongation of the GMP Period.

It was noted that the 2018 cashflow would allow for this payment.

Action Point n) – The Committee requested that a report be presented at the next finance sub-committee meeting of the Committee at 3.30pm on 5th December 2018 (in advance of the Board Meeting). PD to prepare report, RT to schedule the meeting.

It was noted that a Conciliator may need to be engaged to assist with resolving inflation claims with the Design Team

Action Point o) – The Executive to report by Monday 3rd December 2018 on issues that can be resolved directly.

Car Park Payment Rates

It was noted that the DoH are proposing a potential cap of €10 per day for parking at hospital car parks. This would impact significantly on the value of the car park and funding that could be achieved from leasing it,

Noted

Noted

Noted

PD / RT

Noted

DH / PD

Noted

Next Meeting Ad hoc meeting 5th December 2018 @ 3.30pm, NPH Boardroom

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MINUTES OF MEETING


Date 29th November 2017

Time 4.00pm


Present


Brian Fitzgerald (Chairman) Jim Curran Tom Costello John Pollock Phelim Devine Norman Craig Declan Holmes Jim Farragher Richard Fitzpatrick Ronan Traynor Apologies Paul Quinn

Board Member HSE Estates Board Member Project Director Design Director Commercial Advisor Commercial Director Financial Officer Director for Programme Management Project Accountant Board Member

BF JC TC JP PD NC DH JF RF RT PQ



last meeting on 25th October

2017

a) Action Point – CHG Lease – This is now being dealt with by way of a licence agreement which is with HSE for approval.

Sign-off Process – It was noted that the process for approval of change orders between the Finance Sub Committee and Construction Sub Committee has been finalised. PD attended the meeting and provided and explanation for the recent change orders for expert costs. The committee noted that the executive should ensure all scope of work is considered in future procurements. (Clarification – there was an interpretation that another early warning change order for 3Dimensions would be required – this interpretation was incorrect, it relates to IP31 included in the log in Oct ’17). The minutes of the meetings of 25th October 2017 were reviewed and approved.

JF

Noted

Noted

Noted


The change order log was presented to the committee. Change Orders 203 and 204 were under €100k, have been approved by

Noted

Page 2


the executive and were noted by the committee. There were no new early warning or construction contingency change order. A copy of the new change orders sheet is included in Appendix 1. A Purchase Order for Atkins, Independent Technical Advisor for the Residents, which was previously approved by the committee, has exceeded €100k due to additional costs relating to O’Reilly Avenue residents. The committee reviewed the Purchase Order and recommend it to the Board for approval. There are no change orders in the month that the committee are required to recommend to the Board for approval.

Noted

Noted

Noted

3.0 Principals Meetings &

Project Board / Cost Update

DH made a presentation to the committee on the Construction Principals meeting and the Project Board covering:

- roles and responsibilities; and - structures and purposes.

Action Points are noted and an Action Points List is provided to members of the Principals Meetings group. DH also confirmed that the groups report in to the Construction Committee. The committee noted the contents of the presentation and found the structures to be satisfactory. The committee noted the presentation by DH on the early trends on GMP.

Noted

Noted

Noted

Noted

Noted

4.0 Cash-flow Update for 2017

and Monthly cash-flow for

2018

An updated cash flow for 2017 was presented to the committee. The executive informed the committee that in addition to the monthly invoices for BAM an early payment bond was being obtained for rebar in Dec ’17 and this, in addition to the payment of planning contributions, which are a matured liability, will bring spending in line with the funding agreed. The draft 2018 cash flow by month was presented to the committee. It was noted that the required funding currently exceeds the proposed funding from the HSE for 2018. It was also noted that the HSE funding has not be finalised.

Noted

Noted

5.0 Legal Fees The executive provided a brief to the committee on the additional legal fees. The committee requested a paper be provided to them providing a detailed and forensic examination of the breakdown of the additional fees. b) Action Point – RF to draft the paper.

Noted

Noted

RF

AOB N/a

Next Meeting 8th January 2018 in Boardroom, Herberton @ 4pm

Page 3

Page 1

MINUTES OF MEETING


Date 5th December 2018

Time 3.30pm


Present


Brian Fitzgerald (Chairman) Phelim Devine Richard Fitzpatrick Declan Holmes Jim Farragher Ronan Traynor Norman Craig Tom Costello Apologies Jim Curran Paul Quinn John Pollock

Board Member Design Director Director for Project Controls Commercial Director Financial Officer Project Accountant Commercial Advisor Board Member HSE Estates Board Member Project Director

BF PD RF DH JF RT NC TC JC PQ JP


1.0 Design Team Payment

The Executive presented the outline of a draft report issued to the Finance Sub-Committee reviewing the request for additional fees to the principal design team members for Stage 2C and Stage 3; for prolongation and additional scope changes mainly due to:

- 7-month extension for Stage 2C leading to unsustainable losses for principle design team members;

- Actions of the main contractor leading to inefficient work practices;

- Change orders associated with alternative contractor design

- Resource intensive GMP process to determine the Adjusted Contract Sum including the resolution of issues with the Independent Expert akin to a Mediation/Conciliation.

All of the above issues can be dealt with under the contract.

The design team are also challenging the mechanism for dealing with inflation under the contract: CPI v real inflation in the sector. This is the primary issue leading to unsustainable financial positions for the Design Team. CPI for the period amounts to circa 1% whilst real wage inflation has been cited between 16 to 30%. This issue can only be dealt with through conciliation under the contract.

The Committee requested that the Executive engage the Independent Expert and close out agreements with each of the

Noted

Noted

Noted

Page 2


principal design team members prior to the end of the year, co-ordinating with the Phase B Instruction, and that payments of additional fees can only be made after these agreements have been finalised.

Action Point a) PD to arrange meetings with the four Principal Design Team members to agree revised fee arrangements prior to Christmas. The Committee also requested that the Executive build in performance evaluation and KPIs in to the agreement and that payment of the additional fees is based on performance in part. PD outlined initial mechanisms considered to achieve this.

Action Point b) PD to prepare a paper with a proposal outlining how payment will be made to the Design Team post GMP including performance related payment by 10th December 2018.

The issue of funds being available to make payment for the additional fees was raised as the last Form A for 2018 is to be submitted on 10th/11th December. The Committee requested that the Executive contact the HSE around flexibility on drawing funds after this date for payment to the design team prior to the year-end.

Action Point c) JF to contact JC in relation to drawing of funds after Form A of 10th/11th December.

PD

PD

Noted

JF

Next Meeting It was proposed, due to availability of Committee members, to set the date of the next meeting for 9th January 2019 at 2pm, in advance of the next Board meeting.

All

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Documents

Sarah Cremin - Dáil Éireann...2019/03/13 · This e-mail is from NPH. The e-mail and any files transmitted with it are confidential and privileged and intended solely for the use