Oireachtas Joint and Select Committees

Thursday, 7 March 2019

Public Accounts Committee

Oversight and Implementation of Capital Projects and the Role of Public Officials on State Boards: Department of Public Expenditure and Reform and the Office of Government Procurement

9:00 am

Photo of Marc MacSharryMarc MacSharry (Sligo-Leitrim, Fianna Fail)
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Yes, but the Department of Health briefing document states: "Exclusions include ....". I only have a basic understanding of language and certainly none of value engineering but, reading English, this says to me that if construction inflation goes over 4% when it is performing at 7.5% last year and projected, according to AECOM Ireland's annual review looking ahead to 2019, that it is likely to be at 7%. Seven minus four equals three. Can we look forward to the fact that BAM will be able to invoke the exclusion mentioned here of it having exceeded 4% and, therefore it will be open season again, and that €1.7 billion was the accurate price then but now we have to negotiate because inflation has exceeded the 4% provided for?