Construction of the Acute Hospital at Overdale

2025.04.22

3.10   Deputy J. Renouf of St. Brelade of the Minister for Health and Social Services regarding the construction of the Acute Hospital at Overdale (OQ.99/2025):

Will the Minister provide an update on the progress of the construction of the Acute Hospital at Overdale, with particular reference to the procurement process that commenced in autumn 2024?

Deputy T.J.A. Binet (The Minister for Health and Social Services):

As I believe the Deputy is aware, the process to secure a main works delivery partner started in the autumn of 2024 with the issuing of what in the construction industry is generally referred to as a "prior information notice", and it is basically advertising the fact that the construction contract is available. This was followed by a second stage where a pre-qualification questionnaire was issued to interested parties and this part of the process was concluded in January 2025. For those that qualified, the invitation to tender stage 1 process commenced in March 2025. It is anticipated that the full procurement process will conclude some time in the autumn with the signing of the main works contract for the Acute Hospital. I am afraid that is probably about as much as I am able to say on the subject at this point in time because this is an active procurement process that involves investment of resource by potential partners and commercially-sensitive discussions, the release of which would undoubtedly prejudice the process. I hope that answers the Deputy 's questions appropriately.

1. Deputy J. Renouf :

I thank the Minister for that answer. Can the Minister state, is the plan to have one large contractor or does it look from the bids coming in as if the work is going to be spread between several different contractors?

Deputy T.J.A. Binet :

I just think I would like to refer the Deputy to my last paragraph. I genuinely do not think it is in our interest to be discussing who may be in the frame at this point in time, what size business they are and what the combination of contractors may or may not be in the final analysis. If the Deputy does not mind I think I will leave it there, if that is okay.

2. Deputy R.S. Kovacs of St. Saviour :

Given the scale of the investment, how is the Minister planning to manage cost overruns or delays to protect public funds and ensure the project stays within budget?

Deputy T.J.A. Binet :

That is something that is taken care of by the team that is dealing with the issue, that is not something I have got a hand in. I have said this before, I think we have got a very, very efficient team running the project and I have every confidence in them.

3. Deputy R.S. Kovacs :

What specific measures are being taken to ensure transparency and value for money throughout the procurement and construction phases of the Acute Hospital at Overdale?

Deputy T.J.A. Binet :

Well I think to date we have adopted a policy of being as transparent as we can be at every stage, and that is the overall approach that we are going to take right the way through. There are certain things that are commercially sensitive, and we have to be careful about those, so we will not be revealing anything that we consider would not be in the public interest, but certainly everything else we are prepared to make public.

4. Deputy A.F. Curtis :

I thank the Minister for his first answer. I just wondered if he could clarify if the timetable he gave just now is different to what was forecast at the beginning of procurement in August and, if so, what has changed?

Deputy T.J.A. Binet :

I have not made the direct comparison. I think it is broadly in line, it may be running a little bit behind, but not to any great extent, I do not think.

5. Deputy K.M. Wilson :

Could the Minister confirm whether or not once the main contractor has been appointed that they will have freedom to appoint subcontractors?

Deputy T.J.A. Binet :

These are all discussions that are currently taking place with the contractors that have got through to the current stage. As I say, I cannot predict what the outcomes of those discussions will be, but that is the type of discussion that is taking place at the moment.

6. Deputy K.M. Wilson :

I would also like to ask the Minister if he could confirm whether the range of subcontractors will be a composition of both on-Island and off-Island providers?

Deputy T.J.A. Binet :

What I can say is that there are a number of areas of work where we can put the work directly to local contractors anyway. The combination of ongoing works, once we have got a principal delivery partner, will be very dependent on the nature of the contract that we eventually put together.

Deputy K.M. Wilson :

Could I just ask for a point of clarification on that? The Bailiff :

No, the Minister's answer is a matter for him. Provided he has answered and addressed the question, then there is no chance for a further supplementary, I am afraid.

Deputy K.M. Wilson :

It was just that he said "we" rather than "they" and I asked particularly about the contractors' responsibilities, not the Minister's responsibilities.

The Bailiff :

Then I think if you can clarify that, that is a reasonable clarification of the question. Deputy T.J.A. Binet :

Forgive me for being a little bit slow but I have missed the point of that question. If the Deputy could run through that again in simple terms for me, that would be helpful.

The Bailiff :

Well as we have wriggle time, would you like to just clarify exactly what point you are getting to?

Deputy K.M. Wilson :

I was asking the Minister whether or not the subcontractors would be a combination of on- Island and off-Island providers and whether he could clarify that position.

Deputy T.J.A. Binet :

I had hoped I had made that plain. It could well be that it is a combination of on-Island and off-Island but that will depend whether it is under the main contract or whether it is directly contracted areas where we are intending to get some of the work done on direct contracts with local contractors in any event. Some of that work is already happening, so it could be a combination of both of those situations.

The Bailiff :

It could be a combination, that is the answer.

7. Deputy J. Renouf :

Perhaps I could try my luck with a couple of points. Can the Minister state how many companies have made it through to the final stage, when will the tender process be complete involving them, and will construction work commence in Q3, 2025 as originally envisaged?

Deputy T.J.A. Binet :

There were 3 questions there, were there not? Sorry, if you could just go through them again; I just want to make sure I do not get them wrong.

Deputy J. Renouf :

Certainly. How many companies have made it through to the final stage, when will that final stage of the tender process be complete and will it lead to construction work commencing in Q3, 2025 as originally envisaged?

Deputy T.J.A. Binet :

I am afraid I cannot answer that first question; I think it would be unwise to do that. We are hoping to have the contract signed in the autumn, as I said in my initial response.

[10:45]

Depending on the timing of that, that will define whether work starts with the principal contractor in Q3. It is very unlikely to be quarter 3, more likely to be quarter 4.

The Bailiff :

Very well, that concludes questions with notice. We now come on to periods of questions to Ministers without notice. The first question is for the Minister for Infrastructure.