Firm pulls out of Belfast children's hospital project
DoHOne of the joint partners in the construction of a new children's hospital within Belfast's Royal Victoria Hospital (RVH) has withdrawn from the project.
The move comes just six weeks after the multi-million pound hospital project was given the go-ahead by the Northern Ireland Executive.
BAM Ireland said it had made a "commercial decision" not to proceed with its partnership with County Down-based construction firm Graham Construction.
A BAM spokesperson said: "Graham will now proceed with the customer, and BAM's decision will not impact the delivery of the hospital."
At Thursday's health committee meeting in response to a question by Diane Dodds MLA about changes in the contractual situation around the children's hospital, the Health Minister Mike Nesbitt confirmed the contract for the hospital was with Graham Construction Limited.
Dodds had been questioning officials about who would be liable for repairs for several building issues within the Belfast Trust and whether this would impact on future capital projects.
Phillip McClay from the Department of Health said BAM "withdrew at a late stage in the discussions" and they have asked for the reasons, but it was his understanding that BAM's withdrawal was by "amicable agreement".
He told the committee that the joint venture partner Graham Construction Limited had their financial and resources capability assessed and it was awarded the contract.
"We are satisfied that they have the wherewithal and the ability to construct the children's hospital," he said.
The partnership, Graham BAM Healthcare Partnership (GBHP), has been behind some of the largest projects in the Belfast Health Trust area and said it will continue to consider future joint ventures.
GBHP is behind the new Belfast Maternity Hospital, which remains unopened, with costs estimated to have risen from £57m to around £100m, following a series of building problems and dangerous bacterial outbreaks.
It is also behind the Acute Mental Health facility at Belfast City Hospital, which the BBC previously revealed has been beset with building issues and the potential for clinically vulnerable patients having to be moved out temporarily.
The children's hospital project with the RVH has seen several delays since it was first announced back in October 2013.
Costs have risen from an initial £250m to more than two-and-a-half times that amount, with a 10-year delay.
In February, the first and deputy first ministers announced that GBHP would build the hospital.
The 10-floor state-of-the-art facility, which is a Northern Ireland Executive project, will be able to cater for up to 45,000 children per year with 155 beds, 10 theatres, and an emergency department.
BAM Ireland said it did not sign any contracts for this project with Graham or the customer.
It has been heavily criticised for its work on the new children's hospital in Dublin.
The Republic of Ireland facility has been described as the "most expensive children's hospital in the world" following major setbacks and rising costs, now estimated to be €2.24bn (£1.8bn).
Health Minister Mike Nesbitt visited the site in Dublin at the end of February and expressed confidence in BAM Ireland building the children's hospital in Belfast.