Oireachtas Joint and Select Committees

Thursday, 16 June 2022

Public Accounts Committee

National Paediatric Hospital Development Board: Financial Statements 2020

9:30 am

Mr. Derek Tierney:

If there is any particular aspect, but in the context of inflation, which is the subject of this morning’s discussion, and the embedded mechanism within the contract, the Government has recognised the current climate, the residual risk around inflation and the high level of inflation being experienced by the construction sector. The Government has implemented two policy responses to counter that risk and entice the market to engage in bringing capacity to bear on the national development plan. The Government has recognised the risk around the level of inflation, which we are trying to live with and that we are administering a contract within, and it has derived policy responses in that regard.

On the broader question, the Office of Government Procurement is conducting a review of the model form of contract in conjunction with the Government construction contracts committee, GCCC. It will determine the model form of contract going forward. We obviously feel-----