Dáil debates

Wednesday, 9 July 2014

Ceisteanna - Questions - Priority Questions

Public Procurement Contracts

9:50 am

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

Public procurement procedures require all applicants to meet specified standards when applying for public contracts. In this regard, applicants are required to make signed declarations in respect of their financial standing, their legal standing and their payment of taxes and social contributions. The criteria on which contracting authorities may exclude applicants from the award procedure of public contracts are set out in public procurement regulations and directives. Before an applicant is excluded, the applicant may make a case and provide supporting evidence as to why it should not be excluded. The contracting authority must consider this evidence.

It is a condition of the award of public contracts above €10,000 that the successful applicant either provide to a contracting authority a current tax clearance certificate or demonstrate a satisfactory level of subcontractor tax compliance in the case of the construction, forestry or meat processing sectors, which are subject to relevant contracts tax. The same tax clearance requirement applies to any non-resident contractor being awarded a public contract.

In regard to public works, there is a substantial body of legislation that directly or indirectly governs construction activities. However, two key pieces of industry-specific legislation - the Safety, Health and Welfare at Work (Construction) Regulations 2013 and the Building Control Regulations 1997 to 2014 - place considerable responsibility not only on contractors but on all those involved in construction projects. The ultimate sanction for a serious breach of health and safety regulations is a criminal conviction and imprisonment.

In regard to the contract documents, clause 2 of the standard form of public works contracts requires the contractor and his personnel to comply with all legal requirements. In addition, the works requirements, which are a key part of the contract documents, set out detailed specifications on how regulatory standards are to be met.

The management of the tendering process for a public contract is a matter for each contracting authority. It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process.

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