BHB: Losses Will Not Affect Cost Or Quality

May 6, 2014

Following the recent news about the substantial losses incurred by Sir Robert McAlpine Holdings in relation to the KEMH Redevelopment Project, the Bermuda Hospitals Board [BHB] said these losses will have “no adverse impact either on the cost of the project to BHB or on the completion of the new Acute Care Wing in June 2014.”

BHB said, “BCM McAlpine Ltd, through Paget Health Services, were originally due to complete the facility at the end of March 2014, but primarily due to a significant number of design challenges around the mechanical installation, which have all been resolved, they have suffered a delay and additional costs which are wholly their responsibility.

“In overcoming these design challenges, BCM McAlpine Ltd is confident that there will be no adverse impact on the integrity of the final design or the quality of the construction; both will meet the stringent standards set out in the Bermuda Hospital Board’s contract with Paget Health Services and will be verified by independent Advisors.

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Alan Burland, President of BCM McAlpine, said “We are proud to be approaching the completion of the new Acute Care Wing with an exemplary safety record and recognise that the quality of the finished product is testimony to the high levels of Bermudian participation throughout the build phase.

“Furthermore, BCM McAlpine will continue its other construction operations in Bermuda following the support that we have been given by Sir Robert McAlpine Holdings on the KEMH Redevelopment Project.”

Jonathan Brewin, Chairman of BHB, commented “We have every confidence that we will be moving into a high quality building as there have been robust quality checks throughout the project. There are very clear performance specifications in the contract with Paget Health Services and we will ensure that these are met”.

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Comments (14)

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  1. Kangoocar says:

    And NO mention of the on going maintenance that we are ALL on the hook for??? This is going to sting real hard when we have to start paying for this, believe me!!!!

    • Kangoocar says:

      Funny how Zane was shifted from shallow min of Health to Tourism just as this project will have a lot of questions asked about it??? Does anyone else see this uncanny coincidence????

    • Ringmaster says:

      Hit the nail on the head! No mention that “don’t worry Bermuda, the private part of the PPP will absorb the cost overrun”. Why, because Bermuda will pay the cost overrun in the charges over the next 30 years. PPP are smoke and mirrors, loved by politicians the world over as the cost is hidden. Why borrow $300m today when we can say we have had a hospital built for nothing. Vote winner especially when the voters are blind and misinformed. More deception, and misery for the future generations.

      • The private side? says:

        A quick google will show you that the private side of public private partnerships always wins.

  2. Truth is killin' me... says:

    I don’t trust anyone in a suit…especially the ones asking for donations to build a new hospital wing. You may ask…why it matters? I’ll tell you why it matters…because I’m not rich and I pay my bills on time and I don’t play games with the people’s money! Making fools of Mr. and Mrs. Joe Public’s generosity!! Ex bankers and politicians sleep easy at night…dreaming of taxing Bermuda to death through their own incompetence and business greed!!!

  3. 32n64w says:

    What Zane has always known but refused to publicly acknowledge (even though the information can be readily found in various BHB materials) is the simple fact this 30 year PPPcommiment agreed to by the PLP Givernment equates to a minimum $1,000,000,000 obligation of taxpayer funds over the corse of the contract.

    Don’t forget this is the same former Minister who disavowed all knowledge of the greaseball problem which has persisted and been publicly reported on for over 12 years.

    One has to wonder exactly what he and his fellow PLP ministers did all those years to earn their ever growing salaries? Or were they just too busy spending voter funds with little or no oversight and zero accountability to care?

    PLP – party before country since 1998; $2,000,000,000 of debt and hundreds of millions in related interest costs annually that will materially hamper opportunity for our children and grand children for decades to come.

    • 32n64w says:

      8 dislikes? Really? Is this what happens when the PLP’s ‘facts’ and reality collide?

      For all those dissenters please regale us with your factually supported positions. Otherwise stop abusing the dislike button for materially inaccurate statements.

      We’ve had enough of the PLP’s fourteen years of fiction. There’s no reason to continue with the more of the same.

  4. Keepin' it Real!...4Real! says:

    ok …there is your official report(pacifier)…speaking with the actual workers paints a different picture….jus’ sayin’

  5. Time Shall Tell says:

    “Alan Burland, President of BCM McAlpine, said “We are proud to be approaching the completion of the new Acute Care Wing with an exemplary safety record”

    Speaking of which, how is that young fella doing anyway??

  6. nuffin but the truth says:

    Sir Robert McAlpine Holdings v defunct plp…
    my money is on Sir Robert McAlpine Holdings

  7. Huh says:

    Just another thing to add to the mile long list of PLP failures that OBA will have to clean up….

  8. Not sure about "clean up" says:

    But definitely “pay for”.

  9. AL says:

    Contracts were signed 3 years ago. Numbers are set in stone. How will the people of Bermuda be paying for these losses? The glass always has to be half empty around here I guess. What about all of the jobs this project created while the construction industry has been sleeping? What about Bermuda finally having some modern health facilities and patients not having to be flown 2 hours away for surgeries?

    • realitysays says:

      Al, this building will offer ZERO new services. There will be no new surgeries, the same people will still be flown off island. It is a new building that will not be functional for today’s needs. The ORs are going to be less efficient and functional than the ones we have now. And yes at 30 years, you can be sure that the total cost will near $1B easily….