Analysis of pre and post-contract factors affecting the costs of the National Children's Hospital in

Learning Outcomes

Learning outcomes

LO1 Appreciate the variety of environmental contexts within which construction companies operate

LO2 Understand the importance of briefing the client

LO3 Understand the process of selecting the consultants and the contractor.

LO4 Analyse various procurement strategies of the building process

LO5 Advise on methods of procurement to meet the needs of specific clients/projects and evaluate the available alternatives

LO6 Understand the project management process from inception through to completion

The introduction of the ‘floating garden’ halfway up the building literally elevates the importance of nature and the therapeutic environment, making it a central part of the architecture’s character, quite unlike any other hospital of this size.

The oval’s form alludes to the architecture of Dublin’s best-known civic spaces and buildings, most notably its Georgian squares as well as the nearby Royal Hospital at Kilmainham (Ireland’s oldest hospital, now the Museum of Modern Art), with which the oval is axially aligned. Once the new hospital is complete, there will be open views from the floating garden and the wards towards Kilmainham and Phoenix Park beyond, creating a strong landscape and architectural axis that will ‘ground’ the new building in its context.

3.The assignment tasks

You are consulted by an authority to review the National Children’s Hospital in Dublin.

Following a careful review of the project details, you are required to advise the client on the following. Your recommendation will include:

1-An Analysis of the pre and post contract factors that could have affected the spiralling costs of the project.

2-A comparison and evaluation of the effectiveness of cost control methods that could have helped with cost control throughout the life cycle of the project.

3-A review of conflict resolution methods available to the client.

4-A worked-out example of methods of financial analysis (e.g. NPV and Payback method, whole life cycle costing, etc.) to ensure the client return on investment.

Criteria Issues Mark out of 100 Learning outcomes

Relevant knowledge of key concepts

An Analysis of the pre and post contract factors that could have affected the spiralling costs of the project.

A comparison and evaluation of the effectiveness of cost control methods that could have helped with cost control throughout the life cycle of the project.

A review of conflict resolution methods available to the client.

A worked-out example of methods of financial analysis (e.g. NPV and Payback method, WLCC) to ensure the client return on investment.

Introduction of the 'Floating Garden'

Presentation (10 marks) Order, structure and coherence Quality and number of references

4.Report Writing

This assignment is expected to be a professionally written report of 3000 (+/- 10%) words.  The marking scheme indicates how different learning outcomes will be assessed.  Your report must aim to directly respond to the brief provided in this document using logical reasoning and evidence. The data that you use in your report must be derived from reliable sources, be factual and up-to-date.

This report is also perceived as an academic report and therefore the use of proper referencing and adequate citation of sources in Harvard style is compulsory.

The report must be checked for English grammar and spelling before final submission on Blackboard as a PDF file.  When submitting your file please follow the saving instructions below:

Note: It is important to avoid direct speech including writing in the first person (e.g. I, we, you, etc.). Any abbreviations used in your report must be fully explained.

5.Interim In-Class Feedback

You are advised to discuss your progress with the Module Leader during the tutorial sessions as well as announced (Assignment Support). See Module Study Guide.

Subsequently, fire officers informed the board that a sprinkler system would have to be installed at the hospital. Costs increased by a further €61m.

The biggest overrun however occurred in relation to Phase B, when contractors began to engage with the design team.

By mid-2018 as the design for mechanical and electrical systems was completed, “it became clear that there was a very significant gap developing between the estimated quantities at tender stage and the quantities that were now required to deliver the completed design,” Mr Costello said.

All told, construction costs increased by another €320m. At this stage, the board explored alternative options for project delivery (the contract had an opt-out clause), but decided to stay the course with BAM as it would “result in the lowest cost and fastest completion”. Going elsewhere could have delayed the project another two years and cost another €300m.

Eilish Hardiman, CEO of Children’s Health Ireland, who is overseeing this portion of the spend, said the cost had only increased by €9m since 2014, when it was estimated at €291m.

“Only €9m” sounds reasonable if you compare it with an almost €1bn increase on the original tender for the project, the cost of which is now expected to kick to touch other long-awaited desperately needed pieces of health infrastructure.

Committee members found nothing reasonable about the overspend explanations. They were not placated with ongoing references by Mr Costello to the complexity of the project.

To be fair, it can’t be easy to estimate the final spec for a 6,000-room hospital. As Mr Costello pointed out, it was only when the contractors and the designers started working together that the final financial picture became much much clearer. The process is now at a stage, he said, where all of the risk goes on the contractor, having worked with the design team.”