Oireachtas Joint and Select Committees

Tuesday, 12 February 2019

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Estimates for Public Services 2019
Vote 13 - Office of Public Works (Revised)

Mr. Maurice Buckley:

It is a difficult issue. The Deputy is talking about managing risk. We have tried to move to fixed price contracts, with the risk being carried by the contractor. That is the situation I am flagging, although it is difficult to make it work, particularly for large and complex contracts. The scenario we in the OPW see most often involves something like a heritage building, for example, Leinster House, where we cannot specify in detail exactly what work is involved until we go in and get below the surface. The Minister of State knows another scenario very well, that of flood relief projects, in which every river is different and it is difficult to anticipate the technical problems that will arise. It is difficult to work with fixed price contracts. Much of the current theory is that the risk should be shared in a structured way between the contracting body and the contractor.