Oireachtas Joint and Select Committees

Thursday, 13 December 2012

Public Accounts Committee

2010 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Financial Commitments under Public Private Partnerships
2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Financial Commitments under Public Private Partnerships
National Development Finance Agency Financial Statements 2011

11:40 am

Mr. Steven Burgess:

The Deputy has touched on a number of issues that are difficult for contracting authorities to tackle. He suggested that full policing might be required throughout the supply chain in the cases of PPPs and Exchequer-funded projects. That is a particular challenge in the context of current resource levels. Having said that, PPP contracts are different from most traditional forms of contract. We act as the employers' representatives. We manage the contract rather than hiring an architect or professional project manager. We have a very hands-on approach.

We have learned lessons from schools bundle 1, which we have carried through to our most recent contracts. This includes a more visible and transparent reporting regime between the PPP and ourselves in terms of its level of compliance on a monthly basis with, for example, payments to sub-contractors within the supply chain. A statement to that effect must be signed by two directors. Failure to comply would potentially constitute a breach of contract. We ensure compliance is taken seriously.

NDFA staff visit sites on a regular basis. Not only do they inspect building and quality records, they are also made aware of all sub-contractors appointed and confirm that their contracts conform with the requirements of our contract. We also engage in our own health and safety assessment of sites. Along with PPP, we appoint an independent tester who will certify the project on completion and confirm that all the processes and building-----