Oireachtas Joint and Select Committees
Tuesday, 21 September 2021
Public Accounts Committee
Business of Committee
11:00 am
Colm Burke (Cork North Central, Fine Gael) | Oireachtas source
We need some kind of response from the Department.
I am getting concerned as I have come across an Office of Public Works contract recently where five tenders were sent in and the job was offered to the lowest bid and then to the next lowest. The four contractors with the lowest tenders all walked away from the project and the company with the highest tender has accepted that contract. There is a difference of approximately 25% between the lowest tenderer and the highest. It is about how costs have increased dramatically in the past number of months. What does that flag for the completion of this project, for example? We must get some kind of guideline from the Department on this. This was a small contract and my understanding now is that the lowest tender was approximately €7 million but the highest tender was over €8 million. The four contractors who submitted at a lower tender price refused to take the contract when it was offered to them so now the contractor who submitted the highest tender has taken that contract. It is a big concern that I have for this project.
Even in the past number of months the cost of building has gone way up. Where are we with the Department and the group managing this? What is their expectation? We should get some kind of guideline on that.
No comments