1

Sarah Cremin

From: Pamela_Carter@health.gov.ieSent: 07 February 2019 20:48To: Public Accounts Committee; Kieran LenihanSubject: Further information from the Department of HealthAttachments: DOHDPERcommunication OctNov2018.pdf; DOHTaoiseachcommunication

Nov2018.pdf

Categories: Items for Next Meeting

  Kieran As per my previous email further information attached ‐  Correspondence up to mid‐November 2018 on NCH capital cost between the Department of Health and the Department of Public Expenditure and Reform and the Department of An Taoiseach.   (See attached file: DOHDPERcommunication OctNov2018.pdf)(See attached file: DOHTaoiseachcommunication Nov2018.pdf)  Kind regards  Pamela Carter Principal Officer Parliamentary Affairs   An Roinn Sláinte Department of Health  Bloc 1, Plaza Miesach, 50 ‐ 58 Sráid Bhagóid Íochtarach, Baile Átha Cliath, D02 XW14 Block 1, Miesian Plaza, 50 ‐ 58 Lower Baggot Street, Dublin, D02 XW14 (Office 709) __ M +353 87 4151046  T +353 (0)1 635 4048 health.gov.ie  ******************************************************** Email Disclaimer and; Legal Notice: http://health.gov.ie/email‐disclaimer/ ********************************************************    

From: Fionnuala Duffy/SLAINTE To: Barry.O'Brien@per.gov.ie

. Cc: Jessica.Lawless@per.gov.ie, Siobhan Kennan Date: 17/1012018 18:20 Subject: RE: Update note for the Minister on the NCH construction project

Barry

we spoke briefly a couple of weeks ago when I said we want to brief you on the current position in relation to the new children's hospital capital project. I know you have been occupied with Estimates work recently but would appreciate if you could suggest a couple of possible slots when you are available to meet next week. I can prepare a briefing note for the meeting.

The context is that NPHDB and their Design Team are engaging with the Contractors with the aim of concluding the GMP process by November - NPHDB expect to have a high degree of cost certainty by End Oct and to identify any issues remaining .

We want to brief you on the current position and potential cost issues emerging relating to the GMP.

Regards

Flonnuala Duffy Head of Unit - Acute Hospital Policy Unit 2

An Rolon Sl ftlnte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id iochtarach, Baile Atha Cliath, 002 XW14 Block 1, Miesian Plaza. 50- 58 Lower Baggot Street, Dublin, D02 XW14

M +353 (0)87 4174879 T +353 (0)1 6354250 fionnuala.duffy@heallh.qov.ie

........ .i1;;~:m.:a 1..aw1ess <Jesslca.Lawless@per.gov,le> . To: "Flonnuala Duttv@health.gov.le" <Flonnuala Duffv@health.gov.ie>,"Barry O'Brien" <Bcirry.O'Brlen@j)er.gov.le> Cc: "Siobhan Kennan@health.irlgov.le" <Siobhan Kennan@health.lrlgov.le> Date: 23/10/2016 15:10 Subject: RE: Update note for the Minister on the NCH construction project

HI Flonnuala

Sorry I missed your call earlier. This week has filled up a bit on our end . . Could you send me on the briefing note you have and then we can set a date to meet with you soon?

Thanks very much Jessica

Jessica Lawless Health Vote Department of Public Expenditure and Reform 1.06 South Block, Government Buildings, Upper Merrion Street, Dublin 2 076100 8138

a . s - 1

Barry/Jessica

RE: Briefing on the NCH construction project C'.:J Fionnuala Duffy to: Jessica Lawless, Barry.O'Brien Cc: .

24/10/201811:13

as per original request we need to meet with you to brief you on the emerging position,

- I would be happy give you an advance briefing verbally and will bring a briefing note to inform meeting discussion

Would appreciate if we could get a meeting scheduled for early next week if this week is not possible for you.

Regards

Fionnuala Duffy Head of Unit - Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id iochtarach, Baile Atha Cliath, 002 XW14 Block 1, Miesian Plaza, 50 - 58 Lower Baggot Street, Dublin, D02 XW14

M +353 (0)87 4174879 T +353 (0)1 6354250 fionnuala.duffy@health.gov.ie

Jessica Lawless Hi Fionnuala Sorry I missed your call earlier. Thi. ..

From: Jessica Lawless <Jessica.Lawless@per.gov.ie>

23/10/2018 15:10:13

To: "Fionnuala_Duffy@health.gov.ie" <Fionnuala_Duffy@health.gov.ie>, "Barry O'Brien" <Barry.O'Brien@per.gov.ie>

Cc: Date: Subject:

Hi Fionnuala

"Siobhan_Kennan@health.irlgov.ie" <Siobhan_Kennan@health.irlgov.ie> 23/10/2018 15:10 RE: Update note for the Minister on the NCH construction project

Sorry I missed your call earlier. This week has filled up a bit on our end. Could you send me on the

briefing note you have and then we can set a date to meet with you soon 7

Thanks very much

Jessica

J 'il, l a •1c..,s

Health Vote Department of Public Expenditure and Reform 1.06 South Block, Government Buildings, Upper Merrion Street, Dublin 2

RE: Briefing on the NCH construction project C'.l Fionnuala Duffy to: Barry.O'Brien Cc: Jessica Lawless,

15/11/201819:57

Barry - just following up again on our request for some weeks now to meet with you to brief you on the emerging position re NCH construction project,

We have a CHP&P Board meeting scheduled for tomorrow

Following that could we arrange to brief you on the position some time early next week Tue or Wed?

Regards

Fionnuala Duffy Head of Unit - Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id iochtarach, Baile Atha Cliath, 002 XW14 Block 1, Miesian Plaza. 50 - 58 Lower Baggot Street, Dublin, D02 XW14

M +353 (0)87 4174879 T +353 (0)1 6354250 fionnuala.duttv@health.gov.ie

Fionnuala Duffy Barry/Jessica as per original request we need to ...

From: Fionnuala Duffy/SLAINTE

24/10/2018 11:13:04

To: Cc: Date:

Jessica Lawless <Jessica.Lawless@per.gov.ie>, Barry.O'Brien@per.gov.ie Siobhan_Kennan<Siobhan_Kennan@health.irtgov.ie" <Siobhan_Kennan@health.ir1gov .ie> ,> 24/10/2018 11:13

Subject: RE: Briefing on the NCH construction project

Barry/Jessica

as per original request we need to meet with you to brief you on the emerging position,

- I would be happy give you an advance briefing verbally and will bring a briefing note to inform meeting discussion

Would appreciate if we.could get a meeting scheduled for early next week if this week is not possible for you.

Regards

Fionnuala Duffy Head of Unit - Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Dear David,

new children's hospital capital cost. Fionnuala Duffy to: David.Moloney Cc: Tracey Conroy, Barry_O'Brien

19/11/2018 16:46

I understand that you are aware of issues emerging in relation to the children's hospital capital cost.

In line with the procurement strategy and contracting arrangements the main works contract and specialist works contracts have two phases (A- sub-stnicture and piling. B - remainder of the constniction and fit out \vorks above ground). Phase A works have been awarded and

are nearing completion. The deadline for a decision on award of Phase B works is 3'd December 2018. There are financial consequences associated with not instnicting the main contractor by this date.

The National Paediatric Development Board (NPHDB) recently concluded the Guaranteed Maximum Price (GMP) negotiations with the main contractor, the aim of which has been to reach an adjusted contract sum and GMP ceiling prior to instructing Phase B works. NPHDB has produced a report setting out the revised constniction and project cost, components contributing to cost escalation, lessons learnt and options for completing the project. Copy of

this report and the l 61

h November presentation to the Children's Hospital Programme and Project Board attached for information.

NCH GMP Report Final Version - No Cropmarks (ID 36810).pdfCHPP Presentation Rev3 (ID 36572).pdf

Our expectation is that the Minister will submit a Memo to Government in advance of a decision on the awarding of Phase B works. Tracey Conroy and I wish to arrange to brief DPER officials this week on the detail relating to the GMP process and capital cost position.

I would appreciate if you could advise us of your availability this week for this briefing.

Regards

Fionnuala Duffy Head of Unit - Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id iochtarach, Baile Atha Cliath, 002 XW14 Block 1, Miesian Plaza, 50- 58 Lower Baggot Street, Dublin, D02 XW14

M +353 (0)87 4174879 T +353 (0)1 6354250 fionnuala.duffv@health.gov.ie

RE: new children's hospital capital cost. 20/1112018 10:29

David Moloney to Fionnuala_Ouffy@health.gov.ie

~c ''Tracey_Conroy@health.gov.ie", "Barry_O'Brien@health.irlgov.ie", Niamh Duff, Jessica Lawless

Thanks for this Fionnuala

While Jim Breslin signalled that some work was being undertaken on this during the Budget discussions in early October, this is the first material we have received in relation to a very significant budgetary overrun.

As you know in the past we voiced serious concerns in relation to governance of the Children's Hospital project, and were assured that the arrangements in place were sufficiently robust.

We will review the material provided and come back to you as soon as possible

David

~ l~r::s\

· I .~.

David

RE: new children's hospital capital cost. ~ Tracey Conroy to: David Moloney Cc- "Barry _O'Brien@health.irlgov.ie",

· "Fionnuala_Duffy@health.gov.ie", Jessica Lawless, Niamh Duff

20/11/201818:34

We have been seeking to meet your Division on this issue since the end of September - Fionnuala's discussion with Barry O'Brien on 27 September and follow up voicemails and emails requesting a meeting on 17 October, 24 October, and 15 November refer.

I would appreciate it if you could revert with a time this week to meet to brief you in detail on the current position in advance of the Minister making a submission to Government.

We have arranged to brief DfTaoiseach in this regard tomorrow morning.

Regards

Tracey

Tracey Conroy Assistant Secretary, Acute Hospitals Policy Division

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag61d fochtarach, Balle Atha Cliath, 002 XW14 Block 1, Miesian Plaza, 50 - 58 Lower Baggot Street, Dublin, D02 XW14

M +~53 (0)87 972 3466 T +353 (0)1 635 4731 tracey.conroy@health.gov.ie

Designated Public Official under the Regulation of Lobbying Act 2015

David Moloney Thanks for this Fionnuala

From: To: Cc:

David Moloney <David.Moloney@per.gov.ie> "Fionnuala_Duffy@health.gov.ie" <Fionnuala_Duffy@health.gov.ie> "Tracey _Conroy@health.gov.ie" <Tracey_ Conroy@health.gov.ie>,

20/11/201810:29:42

Date:

"Barry _O'Brien@health.irlgov.ie" <Barry_O'Brien@health.irlgov.ie>, Niamh Duff <Niamh.Duff@per.gov.ie>, Jessica Lawless <Jessica.Lawless@per.gov.ie> 20/1 1/201810:29

Subject: RE: new children's hospital capital cost.

Thanks for this Fionnuala

While Jim Breslin signalled that some work was being undertaken on this during the Budget discussions in early October, this is the first material we have received in relation to a very significant budgetary overrun.

As you know in the past we voiced serious concerns in relation to governance of the Children's Hospital project, and were assured that the arrangements in place were sufficiently robust.

We Will review the material provided and come back to you as soon as possible

David

From: Fionnuala _Duffy@health.gov .ie [mailto:Fionnuala_Duffy@health.gov.ie] Sent: 19 November 2018 16:47 To: David Moloney <David.Moloney@per.gov.ie> Cc: Tracey_ Conroy@health.gov.ie; Barry_ O'Brien@health.irlgov.ie Subject: new children's hospital capital cost.

Dear David,

I understand that you are aware of issues emerging in relation to the children's hospital capital cost.

In line with the procurement strategy and contracting arrangements the main works contract and specialist works contracts have two phases (A- sub-structure and piling. B - remainder of the construction and fit out works above ground). Phase A works have been awarded and

are nearing completion. The deadline for a decision on award of Phase B works is 3n1 December 2018. There are financial consequences associated with not instructing the main contractor by this date.

The "National Paediatric Development Board (NPHDB) recently concluded the Guarapteed Maximum Price (GMP) negotiations with the main contractor, the aim of which has been to reach an adjusted contract sum and GMP ceiling prior to instructing Phase B works. NPHDB has produced a report setting out the revised construction and project cost, components contributing to cost escalation, lessons learnt and options for completing the project. Copy of

this report and the 16th November presentation to the Children,.s Hospital Programme and Project Board attached. for information.

Our expectation is that the Minister will submit a Memo to Government in advance of a decision on the awarding of Phase B works. Tracey Conroy and I wish to arrange to brief DPER officials this week on the detail relating to the GMP process and capital cost position.

I would appreciate if you could advise us of your availability this week for this briefing.

Regards

Fionnuala Duffy Head o/Unit -Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhagoid iochtarach, Baile Atha Cliath, D02 XW14 Block 1, Miesian Plaza, 50 -· 58 Lower Baggot Street, Dublin, D02 XW14

M +353 (0)87 4174879 T +353 (0)1 .6354250 fionnuala.duffy@health.gov.ie

******************************************************** Email Disclaimer and; Legal Notice: http://health.gov.ie/email-disclairner/ ********************************************************

The infonnation contained in this email (and in any attachments) is confidential and is designated solely for the attention and use of the intended recipient(s). If you are not an intended recipient of this email, you must not use, disclose, copy, distribute or retain this message or any part of it. If you have received this email in error, please notify me immediately and delete all copies of this email from your computer system(s). Please note that this email and any reply thereto may b~ subject to a request for release pursuant to the Freedom of Information Act.

Ta an fhaisneis ata sa riomhphost seo (agus in aon cbeangaltain) faoi run agus is don fhaighteoir/do na faighteoiri beartaithe e agus e/iad sin amhain. Mura tusa an faighteoir beartaithe, nior cheart duit an teachtaireacht seo na aon chuid di a usaid, a nochtadh, a ch6ipeail, a dhaileadh mi a choinneail. Sa chas gur tri e~id a fuair tU an riomhpbost seo, tabbair f6gra dom laithreach faoi sin agus scrios gach c6ip den riomhphost seo 6 do riomhch6ra(i)s. Tabhair faoi deara go bhfeadfaidh an riomhphost seo agus aon fhreagra air bheith faoi reir iarraidh ar a eisiuint de bhun an Achta um Shaorail Faisneise

I I

\

From: Barry O'Brien Sent: 21 November 2018 12:01 To: Tracey_Conroy@health.gov.!e Cc: Fionnuala_Duffy@health.gov.ie; Jessica Lawless <Jessica.Lawless@per.gov.ie>; Deirdre Collins <Deirdre.Collins@per.gov.ie>; Terry Jennings <TerryJennings@per.gov.ie>; Nlamh Duff

, <Nlamh.Duff@per.gov.ie>; Donal Lynch <Donal.Lynch@per.gov.le>; Albert Morris <Albert.Morris@per.gov.ie>; David Moloney <Davld.Moloney@per.gov.le> Subject: New children's hospital capital cost.

Tracey,

Thanks for forwarding the material from the NCH Development Board.

As you have previously highlighted in the memo to Government the Accounting Officer DoH is responsible for the overall' governance of the project. Yet we received nothing from DoH that considers:

· 1. Total costs Where the overall costs of the project now stand. The build costs submitted to Government 18 months ago have increased by €450m or 46%. No assessment has· been· provided of the . other elements of the project which amounted to ~rou~d €300m at the time of your last memo to Government. Are we now looking at a project that will cost over €2B which would make it the most expensive ho~pital In the world?

2. Governance -Obviously given the temporary nature of the Development Board the DoH is required to robustly assess the Development Board documents and ensure that the risks are managed on behalf of the taxpayer. Where Is the DoH assessment?

3. Management The DoH_ are responsible for managing within their capital envelope agreed by Government over the period. It is unclear how much of the envelope will now be allocated to this project for each year over the period. When will this be clarified?

Regards

Barry

History:

Re: New children's hospital capital cost. ~ Tracey Conroy to: David.Moloney, Sany.O'Brien

"Fionnuala_Duffy@health.gov.ie", siobhan.kennan, "Jessica Cc: Lawless", Deirdre Collins, Teny Jennings, Niamh Duff, Donal

Lynch, Albert Morris

This message has been forwarded.

David, Barry

22111/201817:45

Response to your email set out below. Thanks for the opportunity to brief you in detail on all of these issues at our 11.30 meeting tomorrow. See you then.

Regards

Tracey

1. Total Costs

Following conclusion of the GMP process, the NPHDB produced a report on the process and set it out in the 16th November presentation on the GMP process - both attached to Fionnuala's email of 20th November below. The completion of the GMP process resulted in a confirmed contract price of C890m, a total of C1,433m for all elements of the capital project, i.e. an overall total increase of C450m from the C983m capital cost estimate notified to Government in 2017.

The breakdown of this total additional cost is set out in the NPHDB report and presentation. The description of each the components of the total C1.433m cost is set out in the NPHDB report and in the Budget Breakdown table in the presentation - Table extract attached here for ease of reference.

Of the total of €450m, C319m is the element associated with build cost increase (see row 5).

Appendix 3 - Overall Project Cost Summary.xlsx

As set out in the NPHDB Report Section 3.7 - Benchmarking Report- the NPHDB appointed AECOM to prepare a benchmarking report on the Construction costs of large international healthcare projects -AECOM Report at Appendix 6.1

In conclusion: The benchmark costings indicate that the NCH benchmark costs of C6,500 I sq. m. are approximately 10%higher than the c. CS,900 I sq. m. average of the combined 14 No. projects listed above. It should be noted that the sample of 10 No. projects analysed for this study contained

projects ranging from C4, 000 - CB, 000 lsq.m. This range is inevitably impacted by the individual briefs (the detailed analysis of same which is beyond the scope of this report) for each of these projects and the limitations of international cost benchmarking generally.

2. Governance

As you are aware the NPHDB is a statutory body set up to see this project through to conclusion and can only be dissolved by Ministerial Order - as provided for in Section 63(1) of the Children's Health Act 2018 (No 27 of 2018).

The NPHDB work is overseen within the governance arrangements in place for this project. Following completion of the GMP process, given the considerable increase to C890m on the adjusted tender budget, the NPHDB commissioned two external studies to establish whether the GMP

represented value for money. The evaluation by international consulting engineers DSSR and the international cost benchmarking study by AECOM are both set out in the NPHDB

Report.

At the request of the Chair of the CHP&P Board, the Chair of the CHP&P Steering Group has commissioned an external review of the issues arising to assist in consideration of the issues arising. The Chair of the CHP&P Board also requested the NPHDB to undertake an audit of the GMP proces -both reports are due to be submitted to the DOH tomorrow.

3. Management

As part of the drafting of the Memo to Government, consideration is being given to cost containment and this includes a review of the potential to manage the increased cost within the capital envelope agreed by Government - including the possibility of reprofiling the capital programme and descoping the project .

Tracey Conroy Assistant Secretary, Acute Hospitals Policy Division

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id iochtarach, Baile Atha Cliath, 002 XW14 Block 1, Miesian Plaza. 50 - 58 Lower Baggot Street. Dublin, D02 XW14

M +353 (0)87 972 3466 T +353 (0)1 635 4731 tracey.conroy@health.gov.ie

Designated Public Official under the Regulation of Lobbying Act 2015

Barry O'Brien Tracey,

From: Barry O'Brien <Barry.O'Brien@per.gov.ie>

21111/2018 11 :59:34

To: Cc:

''Tracey_ Conroy@health.gov .ie" <Tracey_ Conroy@health.gov.ie> "Fionnuala_Duffy@health.gov.ie" <Fionnuala_Duffy@health.gov.ie>, "Jessica Lawless" <Jessica.Lawless@per.gov.ie>, Deirdre Collins <Deirdre.Collins@per.gov.ie>, Terry Jennings <Terry.Jennings@per.gov.ie>, Niamh Duff <Niamh.Duff@per.gov.ie>, Donal Lynch <Donal.Lynch@per.gov.ie>, Albert Morris <Albert.Morris@per.gov.ie>, David Moloney <David.Moloney@per.gov.ie>

Date: 21/11/201811:59 Subject: New children's hospital capital cost.

Tracey,

Thanks for forwarding the material from the NCH Development Board.

As you have previously highlighted in the memo to Government the Accounting Officer DoH is responsible for the overall governance of the project. Yet we received nothing from DoH

that considers:

1. Total costs

Where the overall costs of the project now stand. The build costs submitted to Government 18 months ago have increased by €450m or 46%. No assessment has be.en provided of the other elements of the project which amounted to around €300m at the time of your last memo to Government. Are we now looking at a project that will cost over €2B which would make it the most expensive hospital in the world?

2. Governance

-Obviously given the temporary nature of the Development Board the DoH is required to robustly assess the Development Board documents and ensure that the risks are managed on behalf of the taxpayer. Where is the DoH assessment?

3. Management

The DoH are responsible for managing within their capital envelope agreed by Government over the period. It is unclear how much of the envelope will now be allocated to this project for each year over the period.· When will this be clarified?

Regards

Barry

From: David Moloney Sent: 21 November 2018 10: 19 To: Barry O'Brien <Barry.O'Brien@per.gov.ie> Subject: FW: new children's hospital capital cost.

From: Tracey Conrov(@,health.gov.ie [mailto:Tracey Conroy@health.gov.ie] Sent: 20 November 2018 18:35 To: David Moloney <David.Moloney@.per.gov.ie>

Cc: Barry_O'Brien@health.irlgov.ie; Fionnuala Duffy@health.gov.ie; Jessica Lawless < Jessica.Lawless@per.gov.ie>; Niamh Duff <Niamh.Duff@per.gov.ie> Subject: RE: new children's hospital capital cost.

David

We have been seeking to meet your Division on this issue since the end of September­Fionnuala's discussion with Barry O'Brien on 27 September and fo llow up voicemails and emails requesting a meeting on 17 October, 24 October, and 15 November refer.

I would appreciate it if you could revert with a time this week to meet to brief you in detail on the current position in advance of the Minister making a submission to Government.

We have arranged to brief D/Taoiseach in this regard tomorrow morning.

Regards

Tracey

Tracey Conroy Assistant Secretmy, Acute Hospitals Policy Division

An Roinn Slaintc Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhagoid iochtarach, Baile Atha Cliath, D02 XW14 Block 1, Miesian Plaza, 50 - 58 Lower Baggot Street, Dublin, D02 XW14

M + 353 (0)87 972 3466 T + 353 (0) 1 635 4 731 tracey.conrov(@health.gov.ie

Designated Public Official under the Regulation of Lobbying Act 2015

From: David Moloney <David.Moloney@per.gov.ie> To: "Fionnuala Duffy@health.gov.ie" <Fionnuala Duffy@health.gov.ie> Cc: "Tracey Conroy@health.gov.ie" <Tracey Conroy@health.gov.ie>, "Barry_ O'Brien@health.irlgov.ie" <Barry_ O'Brien@health.irlgov.ie>, Niamh Duff< Niamh.Duff@per.gov.ie>, Jessica Lawless <Jessica.Lawless@per.gov.ie> Date: 20/11/2018 10:29 Subject: RE: new children's hospital capital cost.

Thanks for this Fionnuala

While Jim Breslin signalled that some work was being undertaken on this during the Budget discussions in early October, this is the first material we have received in relation to a very significant budgetary overrun.

As you know in the past we voiced serious concerns in relation to governance of the Children's Hospital project, and were assured that the arrangements in place were sufficiently robust.

We will review the material provided and come back to you as soon as possible

David

From: Fionnuala Duffy@health.gov.ie [mailto:Fionnuala Duffy@health.gov.ie] Sent: 19 November 2018 16:4 7 To: David Moloney <David.Moloney@per.gov.ie> Cc: Tracey Conroy@health.gov.ie; Barry_O'Brien@health.irlgov.ie Subject: new children's hospital capital cost.

Dear David,

I understand that you are aware of issues emerging in relation to the children's hospital capital cost.

In line with the procurement strategy and contracting arrangements the main works contract and specialist works contracts have two phases (A- sub-structure and piling. B - remainder of the construction and fit out works above ground). Phase A works have been awarded and

are nearing completion. The deadline for a decision on award of Phase B works is 3rc1 December 2018. There are financial consequences associated vrith not instructing the main contractor by this date.

The National Paediatric Development Board (NPHDB) recently concluded the Guaranteed Maximum Price (GMP) negotiations with the main contractor, the aim of which has been to reach an adjusted contract sum and GMP ceiling prior to instructing Phase B works. NPHDB has produced a report setting out the revised construction and project cost, components contributing to cost escalation, lessons learnt and options for completing the project. Copy of

this report and the 161h November presentation to the Children's Hospital Programme and

Project Board attached for information.

Our expectation is that the Minister will submit a Memo to Government in advance of a decision on the awarding of Phase B works. Tracey Conroy and I wish to arrange to brief DPER officials this week on the detail relating to the GMP process and capital cost position.

I would appreciate if you could advise us of your availability this week for this briefing.

Regards

Fionnuala Duffy Head of Unit - Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bbagoid iochtarach, Baile Atha Cliath, D02 XW14 Block 1, Miesian Plaza, 50 - 58 Lower Baggot Street, Dublin, D02 XW14

M + 353 (0)87 4174879 T + 353 (0) 1 6354250 fionnuala.duffy@health.gov.ie

******************************************************** Email Disclaimer and; Legal Notice: http://health.gov.ie/email-disclaimer/ ********************************************************

The information contained in this email (and in any attachments) is confidential and is designated solely for the attention and use of the intended recipient(s). If you are not an intended recipient of this email, you must not use, disciose, copy, distribute or retain this message or any part of it. If you have received this email in error, please notify me immediately and delete all copies of this email from your computer system(s). Please note that this email and any reply thereto may be subject to a request for release pursuant to the Freedom of Information Act.

Ta an fhaisneis ata sa riomhphost seo (agus in aon cheangaltain) faoi run agus is don fhaighteoir/do na faighteoiri beartaithe e agus e/iad sin arnhain. Mura tusa an faighteoir beartaithe, nior cheart duit an teachtaireacht seo na aon chuid di a usaid, a nochtadh, a ch6ipeail, a dhaileadh mi a choinneail. Sa chas gur tri earraid a fuair tu an riornhphost seo,

DearLiz

new children's hospital capital project cost Fionnuala Duffy to: elisabeth.canavan Cc: Tracey Conroy

19/1112018 16:51

I understand that you are aware of issues emerging in relation to the children's hospital capital cost.

In line with the procurement strategy and contracting arrangements the main works contract and specialist works contracts have two phases (A- sub-structure and piling. B - remainder of the construction and fit out works above ground). Phase A works have been awarded and

are nearing completion. The deadline for a decision on award of Phase B works is 3"' December 2018. There are financial consequences associated with not instructing the main contractor by this date.

The National Paediatric Development Board (NPHDB) recently concluded the Guaranteed Maximum Price (G:MP) negotiations with the main contractor, the aim of which has been to reach an adjusted contract sum and GMP ceiling prior to instructing P~ase B works. NPHDB has produced a report setting out the revised construction and project cost, components contributing to cost escalation, lessons learnt and options for completing the project. Copy of

this report and the 16th November presentation to the Children's Hospital Programme and Project Board attached for information. ·

NCH GMP Report Final Version - No Cropmar1<s (ID 36810).pdfCHPP Presentation Rev3 (ID 36572).pdf

Our expectation is that the Minister will submit a. Memo to Government in advance of a decision on the awarding of Phase B works. Tracey Conroy and I wish to arrange to brief you this week on the detail relating to the GMP process and capital cost position.

I would appreciate if you could advise us of your availability this week for this briefing.

Regards

Regards

Fionnuala Duffy Head of Unit -Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id iochtarach, Baile Atha Cliath, 002 XW14 Block 1, Miesian Plaza, 50 - 58 Lower Baggot Street, Dublin, D02 XW14

M +353 (0)87 4174879 T +353 (0)1 6354250 fionnuala.duttv@health.gov .ie

Re: new children's hospital capital project cost 20/1112018 08:41

Elizabeth.Canavan to Fionnuala_Duffy, Julianne.Grehan

~c Tracey_Conroy, Martina.Shaughnessy, Cillian.Doyle, Ellen.Stewart

Hi Fionnuala

Got Tracey's message yesterday but didn't call her back - she sounds terrible.

I'm in a short week this week but if I can't get something in you can brief Martina and team.

I'll ask Julianne at my end to organise a date and time.

Sent from my iPhone

Re:. new children's hospital capital project cost · 201111201814:46

Julianne.Grehan to Fionnuala_Duffy

From: Julianne.Grehan@taoiseach.gov.ie

To: Flonnuala_Duffy@h~alth.gov.ie

Perfect Fionnuala- will do.

Kind regards

Julianne

Julianne Grehan Social Policy and Public Service Reform Division

Roinn an Taolslgh Department of the Taoiseach

Tithe an Rlaltals, Sraid Mhulrfeari Uachtarach, Baile Atha Cliath 2, 002 R583 Government Buildings, Merrion Street Upper, Dublin 2, D02R583

T +353 (O)l 61.9 :4029 Julianne.Grehan@taoiseach.gov.ie www.gov.ie

Fionnuala_Duffy--20/11/2018 14:46:27-thanks Julianne can you hold provisionally and I will confirm as soon as possible

From: Fionnuala_Duffy@health.gov.ie To: Julianne.Grehan@taoiseach.gov.ie Date: 20/11/2018 14:46 Subject: Re: new children's hospital capital project cost

thanks Julianne

can you hold provisionally and I will confirm as soon as possible

Regards

Fionnuala Duffy Head of Unit -Acute Hospital Policy Unit 2

An Roi nn Slainte Department of Health

Bloc 1, Plaza Miesach, 50 - 58 Sraid Bhag6id fochtarach, Baile Atha Cliath, 002 XW14 ·Block 1, Miesian Plaza, 50 - 58 Lower Baggot Street, Dublin, 002 XW14

M +353 (0)87 4174879 T +353 (0)16354250 fionnuala.duffy@health.gov .ie

From: Julianne.Grehan@taoiseach.gov.ie To: Fionnuala_Duffy@health.gov.ie Date: 20/11/201814:34 Subject: · Re: new children's hospital cap)tal project cost

---·----~---------------------·--_, ___ _

Hi Fionnuala

I'm just wondering would 9 - 930 tomorrow morning suit as Liz is not at the Office Thursday and Friday this week?

Kind regards

· Julianne

Juliann~ Grehan Social Policy and Public Service Reform Division

Rolnn an Taolsigh

Department of the Taoiseach

Tithe an Rialtais, Srald Mhulrfean Uachtarach, Balle Atha Cllath 2, 002 R583 Government Buildings, Merrion Street Upper, Dublil') 2, D02R583

T +353 (0)1619 4029 Julianne.Grehan@taoiseach.gov.ie www.gov.ie

- Forwarded by Elizabeth Canavan/ESP/DOT on 20/11/2018 13:30 --

From: Fionnuala_Duffy@health.gov .ie To: Eliza beth.Ca navan@taoiseach.gov.ie Cc: Tracey_Conroy@health.gov.ie Date: 20/11/2018 13:19 Subject: Re: new children's hospital capital project cost

Thanks Liz- we are anxious to brief you directly if possible this week.

Tracey is available as follows:

this afternoon after 4pm

or tomorrow am up to llam , between lpm and 3pm or after 4.30pm ,

also available any time on Thurs

If any of these times could be accomm_odated that would be appreciated

thanks

Regards

Flonnuala Duffy

Head of Unit - Acute Hospital Policy Unit 2

An Roinn Slainte Department of Health

Bloc 1, Plaza Mlesach, 50 - 58 Srald Bhag6id fochtarach, Balle Atha Cliath, 002 XW14 .