New Hampshire psych hospital design error to cost $15M plus delays: 5 notes

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A foundation design flaw at a new state psychiatric hospital in Concord, N.H., has delayed construction by more than nine months and may leave taxpayers on the hook for an additional $5 million, according to a Dec. 3 report from NPR affiliate New Hampshire Public Radio. The 24-bed facility will replace the existing secure psychiatric unit at the state prison, which has faced legal scrutiny over conditions.

Here are five things to know:

  1. Contractors discovered a “deviation” in a wall after installing support piers. A state engineer said this prompted a review of a consultant’s findings, which revealed a design error. 
  1. After beginning construction in August 2023, it was halted for several months earlier in 2025 while engineers redesigned the foundation.
  1. An insurance company representing SMRT, the firm that designed the flawed pilings, agreed to pay the state $9.9 million to cover part of the redesign and delay costs. 
  1. Officials estimate the total impact of the error will cost $15 million — about $5 million more than the insurance settlement covers. 
  1. The 41,000-square-foot facility was initially scheduled to open earlier but is now delayed by more than nine months. SMRT and PC Construction of Vermont, the contractor, remain on the project, and no party admitted fault under the terms of the settlement. 
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