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Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: For CIF members, given the current contracts framework, what is the risk of further civil contractors like Roadbridge going to the wall?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: Do you have concerns for the viability of CIF members working on existing contracts?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: What margins were they looking at in those contracts originally? Two per cent?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: They have had a turn of 5% into the negative.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: Does the CIF believe that any of the roads contracts at the moment are making money?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: Are such contractors surviving on cash flow?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: We hear the same.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: The CIF probably has far more knowledge of that than the committee has.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: Senator Buttimer, do you wish to conclude?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: It is a matter of urgency. As well as the Office of Government Procurement, we will ask the Minister, Deputy Michael McGrath, to appear before the committee. The committee is not tied directly to one line Department; however, the biggest segment of the NDP is roads, which falls very much under our remit. How many people are employed in the sector? Has the CIF had an opportunity to look...

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: Directly and indirectly?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: And low inflation.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: The Deputy mentioned a figure of €20,000. What percentage of the overall contract price is that?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: The basics.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: I have two quick questions. Is Deputy Canney correct that some members of the CIF are not tendering in the Irish market but, rather, going to the UK and elsewhere? Are the current public works contracts always based on the lowest tender?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: I am asking about the current situation. Is it always based on-----

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: There is a blend allowed under the contact------

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: That would contribute to having a sector that is sustainable in the long term.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Kieran O'Donnell: Our guests have met the Office of Government Procurement and the Minister. They anticipate that a formal response will be issued in the next two weeks.

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