Mr. Maurice Buckley:

If I was starting a project now that I would expect to be under construction in 2022, I would in my cost estimate take into account three years of construction inflation. Reverting to my earlier point, this time last year we were using a figure of 6% and thinking we were being conservative. Now we realise 6% was too low. A cost estimate is redone several times until one gets to the definitive cost in going to procurement and the placing of contracts.

On the type of contract the OPW would typically place, a contract worth €100 million would be a very large project for us. It is done at a point in time. A contractor bids for the contract with a price which is then fixed. The ultimate determinant in the contracts we place is the competitive process, including tenders. Up until the time we proceed to competition, we are still estimating the price. Five tenders might be received and we would then know the exact price.