The National Disability Authority (NDA) was told halting a construction project that was running close to 50 per cent over budget could lead to legal action.
Work on the authority’s Dublin 4 headquarters was expected to cost around €1.36 million under its original budget, but internal documents warned costs could rise to almost €2 million.
The project was planned to deal with fire safety concerns and findings from a 2019 audit that highlighted accessibility issues with the building.
A meeting of the authority’s finance committee last April heard of “dissatisfaction” over the spiralling price and “the fear that there will be further additional costs”.
Attendees at the meeting were told there was no choice but to proceed with the work as the project was already well under way. The meeting was told that because the building on Clyde Road in Ballsbridge was a protected structure, it was “inevitable that there will be surprises”.
An update sent to the Department of Children, Disability and Equality advising it of the cost overruns said “stopping now would result in a total loss”.
“The executive also commented that stopping the project could result in a legal action from the contractor against the NDA.”
A briefing document for the department said a temporary subcommittee had been set up “to convey concern and dissatisfaction” over how the costs had escalated.
It said extensive works were required to introduce fire-stopping measures and that additional expenses related to asbestos removal, the relining of an old chimney, and rerouting of drains.
The note said two further issues had cropped up: the building’s emergency lighting system was no longer fit for purpose, and there were logistical challenges with providing an accessibility ramp.
The note also explained how there was no contingency in the original budget because of how Government contracts are awarded.
It added: “The current public procurement process also means that public bodies have little choice but to select the lowest submitted tender, increasing the likelihood that additional costs will become necessary during the lifetime of a project.
“The NDA believes both these issues have contributed to the current set of circumstances.”
The Disability Authority told the department it would seek about €250,000 in savings in other areas to help meet the unexpected costs. An internal NDA note questioned whether the department should be told about this.
Minutes of an authority meeting show the project was completed last October, months beyond the anticipated June finish date.
The minutes said a summary note of the works should be prepared, noting “challenges at the various stages” and what steps could be taken to ensure there was no repeat.
This week the NDA, an independent statutory body that provides advice to the department on disability policy, said it still did not have a final bill for the project as it was “in the negotiation phase”.
The main contractor on the project, Tolmac, did not respond to questions.
The department said feasibility studies and a valuation report determined it was “most economically advantageous” to carry out works on the existing premises rather than seeking an alternative building.
“Given the information provided in January 2025 about the need for additional expenditure, there was agreement that this was essential to allow for the conclusion of the works in compliance with the relevant regulations and standards,” it said.
It said the NDA achieved savings “wherever possible in its non-pay budget” last year to help meet the cost overruns. There was an underspend in the NDA’s pay budget and the department allowed a “a one-time exceptional transfer” to meet the increased building project costs.