The Taoiseach says the rising cost of the new National Children's Hospital should have been anticipated.
In 2012 the project was given an estimated cost of €404 million.
Last week it emerged that the price tag of the new hospital has risen to €1.4 billion.
That's up by €400 million since the end of September alone.
Leo Varadkar says he's not happy at this year's overrun, but says there may be a chance that the costs could get even higher.
The Taoiceach says "I'm very dissatisfied about what's happened in the past year."
However he says he understands the money has to be spent:
"Some of it is VAT. some of it is construction inflation, some of it is that the building is going to be spec'd in a different way - everything from sprinklers to ceiling heights. This is money that does need to be spent, but it should have been anticipated."