Bam claims it is owed nearly €1bn (£870m) by Ireland’s National Paediatric Hospital Development Board, despite running more than 40 months late in delivering a new national children’s hospital in Dublin.
It was revealed last week that the €1.9bn (£1.6bn) facility would not be finished by its latest expected completion date of the end of April 2026 after already being delayed 18 times.
David Gunning, chief officer of the National Paediatric Hospital Development Board, told members of the Irish parliament’s joint health committee that it is claiming €40m (£34.7m) in liquidated damages from Bam.
However, he said that Bam maintains it is owed €1.067bn (£930m) relating to 2,619 claims on the contract.
Gunning said that Bam is challenging the verdict of an employer’s representative that validated just €53.16m (£46.2m) of the claimed amount.
Of the total Bam is seeking, €926m (£803.2m) relates to extensions of time (EOTs), which Gunning said includes numerous duplications.
“Bam has acknowledged duplication of time periods in the EOT claims but has not withdrawn
or reconciled these duplicated amounts,” he said.
A spokesperson for Bam said: “There is an ongoing contractual process dealing with change, extensions of time, contract administration, and the final value of the project.
“Through the contract’s dispute resolution process, the conciliator has already recommended Bam over €140m (£121.5m), along with time extensions of over 300 days. In addition to this, an increase of €53m (£46m) has been agreed as provisional sums for Bam.”
She said that the the contractor refutes the figure for damages being claimed by the board.
“Bam does not recognise the figure referenced in relation to potential liquidated damages.”
Bam has previously said the frequency of design changes on the project had caused delay and disruption.
“It is not accurate or constructive to state that Bam has continuously missed completion dates,” a Bam spokesperson told Construction News. “The programme has evolved in response to instructed design changes and additional scope during the project.
“Each updated completion date reflects these new changes and the resulting need to reprogramme the works, rather than any failure of performance.”
At the committee on health, Fianna Fáil TD Martin Daly accused Bam of failing on all its targets.
“This is an international construction company that has failed on all of its targets repeatedly and still can’t satisfy the contract and they’re claiming for an additional €1bn, it’s unbelievable,” he said.
“Forty months over without a definite date for delivery – it’s really just mind-boggling.”
He added: “There will be deep disappointment and there will be severe public disbelief at the lack of delivery here. The fact that this company seems to have the state over a barrel at every juncture, it’s very difficult.”
Bam said the project is now in its final stages of completion and work is taking place simultaneously across several areas of the building, including highly technical and clinical areas that require specialist commissioning work.
“The project continues to be resourced to support the work currently underway, with specialist teams continuing to complete the remaining programme,” Bam said.
The oval-shaped seven-storey building will contain more than 6,000 rooms.
These will include 22 operating rooms, 60 critical care beds and 93 daybeds, with 14 courtyards and gardens outside.
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Ian Weinfass