Inflation could add €51 million or more to the cost of the National Children's Hospital by the end of this year, the Public Accounts Committee has heard.
Over the last three years, more than €21 million has been paid to contractors to cover inflationary costs.
A further €30 million could be paid out this year, according to the hospital's calculations.
The committee heard last year that the final cost of the hospital could be more than €2bn.
Meanwhile, Fianna Fáil TD Paul McAuliffe noted that this would bring inflationary costs to an "eye-watering" €51 million by the end of this year.
"That could go higher?", Deputy McAuliffe asked the hospital's CEO, David Gunning.
"Correct," Mr Gunning replied. "Where will it end up? We don't know."
He also expressed concern over whether the project would be completed on schedule.
While it is on track for "substantial completion... by the end of January 2024", he detailed "a number of factors which put pressure on this forecasted timeframe".
Mr Gunning pointed to "widespread disruption" in construction "caused by Brexit, Covid and the war in Ukraine", and said these "will add additional costs to the project".
But he singled out "the current period of high Inflation" as the key concern.
The terms of the contract stipulate that the Children's Hospital is liable "for inflation above 4%", Mr Gunning said.
""Up to that point, it is on the contractor's dime," he noted.
This was "about as much as a contractor would take a risk on", insisted Phelim Devine, Project Director at the National Paediatric Hospital Development Board [NPHDB].
The percentage was thought to be "an appropriate figure" and got "the right balance", he added. "It was very reasonable".
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Deputy McAuliffe was not convinced.
"There should have been some mechanism in the contract which protected that State from paying 100% of that figure above the 4%. There should have been a more reasonable split between the two," he said.
The contract "does exist - that's it", Mr Dunning insisted.
He told the committee the "average tender price inflation" for 2021 was 10.24%, resulting in additional payments of €17.89 million to contractors.
In 2019, inflationary payments were €1.7 million and in 2020 they amounted to €1.5 million.
The total inflationary payment made to date "is roughly €21.16 million", Mr Gunning said.
He outlined "a particular scenario", assuming that 2022 has a similar rate of 10%, and €200 million payments are made to contractors, then the additional inflationary payments will be €30.4 million.
Again, Deputy McAuliffe noted that the actual amount could be higher.
David Gunning said he could not give "a final estimated cost" for the project and advised against any speculation as to what it might be, saying this could jeopardise the board's ability to negotiate.
But he said that the "final amount will be above that already approved by Government".
Mr Gunning said that the board will "rigorously review" all additional costs, and will award only those that are "appropriate and justified".
The National Children's Hospital is now "70% complete", with the first rooms due to be completed in August, he said.
Board criticised by PAC
In an RTÉ Your Politics podcast this afternoon, Minister for Health Stephen Donnelly confirmed high inflation will add "significantly" to the build cost of the hospital.
Minister for Health Stephen Donnelly has said high inflation will add 'significantly' to the build cost of the National Children's Hospital.
— RTÉ News (@rtenews) June 16, 2022
He added that he believes the process around costs was 'not set up in the right way' | Read more: https://t.co/lSkK6SV21B pic.twitter.com/u0BMl483L6
Earlier, PAC strongly criticised the hospital board for "an apparent disregard" for the work of the committee and for failure to provide requested documents.
Social Democrats TD Catherine Murphy demanded a "significant improvement" in the board's behaviour, which she said was "clearly unsatisfactory".
Ms Murphy was acting as chair for the committee, as Cathaoirleach Brian Stanley of Sinn Féin is absent.
At the outset of today's session, she drew attention to a "worrying trend [...] in terms of lack of engagement and an apparent disregard in terms of accountability to the Oireachtas" on the part of the board.
The Oireachtas represents the "taxpayers who foot the bill" for public bodies, she said.
She told Mr Gunning that "a reasonable timeframe" was allowed in repeated requests the committee made for documentation, but that "the information was not provided".
While opening statements are expected 24 hours before the sitting, she revealed that Mr Gunning's did not arrive until 9pm last night.
He responded that: "I note your comments ... and I assure you we will strive to meet the timing requirements of the PAC in future."
