Noel Dempsey (Meath West, Fianna Fail)

I am replying to this Adjournment matter on behalf of my colleague, the Minister for Education and Science.

Scoil Bhríde has a principal plus 19 teachers and four learning-resource teachers. In September 2008, it had 520 pupils and has seen a 24% increase in its enrolments over the five years up to September 2008. The project is in an area experiencing rapid growth and has a band rating of 1.1, the highest priority rating for schools building projects. It was one of 25 projects the Minister announced on 29 September 2008 to proceed to tender and construction. Since then the Minister has announced a further 53 projects to proceed to tender and construction.

The brief for the project in Scoil Bhríde is for a new 32 classroom school plus associated ancillary accommodation and site works. Following the announcement in September 2008 the project was tendered and a contractor was appointed in June 2009. Work commenced on site in June 2009.

On Tuesday, departmental officials were verbally made aware the contractor had gone into receivership. Although the Department has not received formal written notification that the contractor is in receivership, officials have been actively engaging with the design team to ensure all the necessary steps are being taken. The bondsman has been notified and contact has been made with the putative receiver who has been asked to confirm if the contractor is in receivership. The design team on the project held a meeting on site this morning to discuss progress and to agree the next steps.

Difficulties with contractors, while relatively rare, do occur from time to time. This is why the Minister insists on having the necessary documentation before contracts are in place. The project in Kill has a performance bond in place which will ensure the State is insulated from any additional costs that may arise in having this project completed. The purpose of the bond is to provide security for the State in the event of a contractor becoming insolvent and is no longer in a position to complete the contract.

The most recent school building project where a contractor went into receivership was in County Meath, a case with which I was familiar. In this case the project was re-tendered and a new contractor appointed in four months. The project in question was subsequently completed and handed over to the school in September.

If it transpires the contractor is not in a position to complete the project, then following the implementation of the formal procedures required by the conditions of contract, departmental officials will take the necessary steps to have this project back on site as soon as possible in accordance with public procurement procedures. Departmental officials will be in touch with the school in the coming days to appraise it of the situation and to assess the potential impact on the school in its current accommodation in the event of the likely delay in completing the project.

I again thank the Deputy for raising this matter and will convey his concerns to the Minister for Education and Science.

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