Oireachtas Joint and Select Committees

Tuesday, 28 March 2017

Committee on Budgetary Oversight

Review of the Capital Plan: Construction Industry Federation

4:00 pm

Mr. Pat Lucey:

-----in the past.

I can tell the Deputy that there a couple key things on the matter of tender versus outturn. The matter Mr. Doheny mentioned about the budget that is originally set up is something we have seen happen before. We saw it happen with the early part of the roads programme, where there was a massive difference between the contract cost and the original estimate. The National Roads Authority, NRA, recognised that and put in a robust system for getting its estimates right. It brought in the correct professional people to get its estimates right. We will always recommend that clients, either private or public, make sure they have the right professional advice beside them to get those things right.

The second thing that feeds into tender versus outturn is the form of contract used. A form of contract that deals with change is needed in construction. Anyone in this room that has built anything knows that things change. An agreement needs to be in place that deals efficiently, cheaply and does not require the assistance of solicitors to hammer out an agreement. Change and how change is dealt with are very important in construction projects. On the matter of a State building company versus the private sector that we have, we have incredible construction people in this country. We see small companies starting all the time. People that break away start up their own company. They are very efficient. They are coalface people. They deliver. It would be very hard to set up a State company in any sort of a sustainable long-term fashion that would last and do the same thing. That is my take on it.

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