The contractor — and not the taxpayer — is on the hook for millions of dollars in losses racked up as a result of “design challenges” on the hospital redevelopment project.

And Bermuda Hospitals Board (BHB) said the hit incurred by UK-based Sir Robert McAlpine Holdings, the joint venture partner of local construction firm BCM McAlpine Ltd, would have “no adverse impact” on the facility’s completion.

UK newspaper The Telegraph reported on Monday that the British company said “substantial losses” in connection with the hospital project had been covered by a £50 million ($84.9 million) provision.

The new hospital was originally slated to open its doors in March.

According to the The Telegraph, BCM McAlpine has “significant claims” outstanding from the project.

BCM McAlpine, through Paget Health Services, encountered “a significant number of design challenges around the mechanical installation, which have all been resolved”, a BHB spokeswoman said last night.

She added that the firm had “suffered a delay and additional costs, which are wholly their responsibility”.

The contractor expressed confidence that there wouldn’t be any impact on either the final design or quality of construction for the project.

Standards for the new facility are set according to BHB’s contract with Paget Health, and will be verified independently.

BCM McAlpine president Alan Burland said the job was nearing completion with “an exemplary safety record”.

Mr Burland also said the finished product’s quality would testify 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,” Mr Burland said.

BHB chairman Jonathan Brewin also endorsed the building standards, which he said had been held to “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.”