Oireachtas Joint and Select Committees
Wednesday, 27 April 2022
Joint Oireachtas Committee on Transport, Tourism and Sport
Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion
Mr. Tom Parlon:
Mr. Sheridan is the expert on contracts. A price variation clause is normal. In every other jurisdiction there is a price variation clause. For some reason, which I think was political at the time, it was decided that all future contracts would be a fixed-price lump sum and prices would no longer go through the roof. We then of course had periods of very low inflation, a recession and all of that. This is an extraordinary time. The fact that we have extraordinary inflation and no capacity does not make sense.
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