Jack Chambers (Dublin West, Fianna Fail)

I thank the Deputy. My Department has implemented several safeguards and strategic frameworks to ensure that large-scale public infrastructure contracts are completed on time and within budget. The infrastructure guidelines published in 2023 set the key requirements for project governance over a project’s life cycle. The guidelines cover the evaluation of projects and their proper planning and management once approval in principle is obtained.

The guidelines have replaced the public spending code and, significantly, have reduced the number of approval stages and streamlined the requirements for major projects, while retaining the international best practice governance and oversight arrangements already in place. These arrangements sharpen the focus on risk and cost management and reduce the compliance burden on low-risk projects, which brings Ireland into line with leading international approaches to major project delivery. The introduction of the external assurance process and the establishment of the major projects advisory group has improved the governance and oversight arrangements for major infrastructure projects.

Standard procurement and contract templates are published under the capital works management framework, CWMF, and apply to projects that are majority Exchequer-funded. There are several cost control review points set out within key stages of a project’s design evolution which utilise standard reporting templates. It is a general principle that projects to which the CWMF applies are put out to tender on the basis of a comprehensively defined set of project requirements so that tenderers can provide a lump sum price for the completion of the project. However, major infrastructure projects, due to their scale, duration and risk profile, often require bespoke contractual strategies not catered for under the CWMF. Typically, these projects use standard forms of contracts which are used internationally in order to attract as wide a field as possible to tender.

These contracts bear many similarities with the standard form of public works contract, with clearly defined circumstances where the price and date for completion may be adjusted. They typically employ comprehensive change management procedures which are adhered to by both parties. They differ from the CWMF contracts in the pricing structure and the inclusion of incentives to deliver the project on time and within budget.

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