merrion street

The Minister for Health Simon Harris has announced his intention to appoint Mr Fred Barry as chairperson of the National Paediatric Hospital Development Board.

Mr Barry is a former chairperson of the National Roads Authority and has vast experience in managing complex projects.   

Speaking today, Minister Harris said:

I want to thank Mr Barry for taking up this role. The National Children's Hospital is the most significant investment in children's healthcare in this country.

Mr Barry's experience and leadership will be invaluable to ensuring the next phase of this project is delivered for future generations.

The Minister also confirmed that revised terms of reference for the PwC review into the cost escalation have been finalised.  

The review will be completed the end of March, and will inform any governance or other changes required. The review will deal with the accountability of the relevant key parties, functions and roles.


Notes to Editor:

New Children's Hospital (NCR) Review of Escalation in Costs - Terms of Reference

This review has been commissioned to understand the reasons for the cost escalation associated with the new children's hospital construction project ("the project").
The primary focus of the review is on the governance and management arrangements in place within and between the National Paediatric Hospital Development Board (NPHDB) and Executive, Design Team, relevant consultants, user groups and contractors.
The review will be completed by 29th March 2019, subject to availability of relevant documentation and personnel, and will inform any governance or other changes required.
The review will deal with the accountability of the relevant key parties, functions and roles. This may inform appropriate next steps by decision makers, including Government.


Scope of Work
Specifically, the review will:
•Establish the sequence of events in relation to the cost increases experienced by the project.
•Establish what was known, when and by whom, and the reporting of relevant
information from the project team to the relevant oversight and governance bodies including NPHDB Board and its Committees, the HSE and the Department of Health.
•Assess the processes, controls, decision-making and oversight arrangements in relation to the planning and delivery of the project, including specifically the:
- development and approval of the original business case / original design, budget and
   scope
- development and approval of the construction/procurement strategy for the project
- appointment of the main contractor, selection and execution of the construction contract
- management of the main contract, in particular in relation to cost/budget and
  scope/change
- design development process
- assessment and valuation of risk at key decision points and on an ongoing basis
- roles of key parties and accountability for the financial control and performance of the project.
•Establish the underlying root causes (processes, controls, governance and decisions taken) that have contributed to cost increases.
•Comment on the major residual risks and the robustness/completeness of the current forecasts and identify and where possible quantify those risks contractually excluded from the GMP/adjusted contract sum.
•Comment on the extent to which changes have been put in place by the NPHDB, the HSE and the Department of Health to address lessons learnt.
•Develop any further recommendations, if possible, which may:
- identify any areas of potential cost savings or reductions, which are consistent with the applicable contractual undertakings and the delivery of the project, in light of its current status
- address major residual risks, control and oversight issues and
- bring greater oversight of performance and value for money.