The construction firm BAM billed the Government €25 million for work at the National Children’s Hospital, despite the job only costing them around €200,000 to complete, Health Minister Stephen Donnelly has revealed.
The remarks were made when speaking in an Oireachtas Committee meeting on health today, as the Minister discussed a job to change air conditioning grilles at the hospital site. The job was originally believed to cost €25 million.
“It cost less that 1% of the amount originally stated – it cost less than €200,000 and it took a few weeks to complete,” Donnelly said.
The €200,000 cost came from modifications to air conditioning grilles, with BAM claiming that these adjustments would lead to project delays lasting “many, many months – maybe a year.”
The minister went on to explain, “In the end, it didn’t cost the €25m – which I think was being suggested – it cost €200,000.” He added that the changes were finished “in a matter of weeks.”
“It’s worth saying that – mistakenly or not – BAM still issued an invoice to the State for the full €25m,” Donnelly noted, adding: “But maybe that was an administrative error on their part.”
Donnelly also stated that he had a “very clear and forthright discussion” with Royal BAM regarding the project’s progress.
“I very clearly put it to them that it was our view that the project was both consistently and substantially under-resourced.”
However, he did not confirm whether Royal BAM—BAM Ireland’s parent company—agreed with his view on the matter.
Last week, the minister mentioned that Royal BAM had given him a commitment to complete the hospital by June of next year, amid worries that the timeline might slip into 2026.
Asked how confident he is that the hospital will be completed by June of next year, Donnelly replied: “From my perspective, one of the core points of the meeting was to say this is BAM’s fourteenth deadline, that we cannot possibly have confidence, and the board most certainly does not have confidence in this deadline based on past performance, so we need Royal BAM, as the parent company, to stand over this and for all parties to engage and make sure that a real proposal is put on the table.”
In a statement this afternoon, BAM confirmed its commitment to completing the hospital by June 2025, as long as no further major design changes are made by the NPHDB.
The company welcomed recent discussions with Minister Donnelly and the Department of Health and emphasised that collaboration is key to finishing the project efficiently.
BAM disputed claims by the NPHDB Chair that no major changes have been made since 2019, citing 24,000 new drawings, substantial monetary awards, and time extensions as evidence of significant modifications.
The company stressed that avoiding further changes is crucial and noted it has already increased staffing levels by over 50% above what would normally be required at this stage.