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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)

Ruairí Ó Murchú: We need to engage to ensure this happens. The most important thing is to ensure the timeline is as short as possible and that we get a system that is fit for purpose and works.

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

Ruairí Ó Murchú: I thank Mr. Parlon and Mr. Sheridan. On some level, this issue has already been addressed. It was stated that there are two things we are dealing with, that is, the present running of contracts and the need for amendments. From what our guests are saying, it does not seem that there is a major difficulty there. Where two people are obviously in agreement and it is legally put together,...

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

Ruairí Ó Murchú: Yes.

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

Ruairí Ó Murchú: Ultimately, we are talking about contracts or systems that are up and running and will be used for years. If I understand the matter correctly, it is a case of sharing the possible pain that can come from the increases. Does Mr. Sheridan know what I mean? Protections will be written in, particularly from the point of view of the taxpayer.

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

Ruairí Ó Murchú: The position we are in now was put well by Mr. Parlon in that the arrangement is utterly dysfunctional and people are just going through contracts line by line to get opt-outs or trying to use variations as a means of staying in the game. The longer this goes on, the worse the situation will be. The reason we are having this conversation is that we want projects to be delivered. We all...

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

Ruairí Ó Murchú: Has the CIF got to a point with the OGP where there is an agreement in principle that a revised mechanism will be put in place? Has it got to a point where it is working on the detail on the inflation percentage? What is the CIF's position on that?

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

Ruairí Ó Murchú: Who has CIF engaged with on this at governmental level?

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

Ruairí Ó Murchú: Is it directly with the OGP?

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

Ruairí Ó Murchú: CIF has nothing back in relation to-----

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

Ruairí Ó Murchú: I imagine so.

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

Ruairí Ó Murchú: What Mr. Parlon is saying is that very few contractors are going to look at any of these contracts into the future until this is fixed.

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

Ruairí Ó Murchú: Whatever about the dysfunctionality regarding who is already in play, we are talking about nothing happening until this is resolved. Can the witnesses give a breakdown and elaborate on the best-case scenario in what they are looking at? There is the NEC and FIDIC. Which is their preference? Can they give any specifics regarding what they think would work, percentage-wise and so forth, and...

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

Ruairí Ó Murchú: How would the shared responsibility or the onus work?

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

Ruairí Ó Murchú: That is literally offering up the receipts.

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

Ruairí Ó Murchú: How specific are these contracts? I imagine there are broken down costs and one is giving a general indication of the separation between costs and everything else.

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

Ruairí Ó Murchú: One has to separate out the work and labour versus the costs.

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

Ruairí Ó Murchú: Does the NEC have a facility relating to that pre-consultation part between client and contractor? It seems to make a lot of sense from the point of view of catching mistakes, obstacles or difficulties down the line.

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

Ruairí Ó Murchú: It makes complete sense. The witnesses have spoken to who they need to speak to, and their speech as to what is needed is in the public domain. It is just the sooner, the better. It is absolutely necessary. For almost every person who has appeared before the committee in the last while there are two issues, tendering and the planning process. With regard to fixed-cost tendering, the...

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

Ruairí Ó Murchú: I understand that.

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

Ruairí Ó Murchú: We all understand that there must be consultation. Sometimes the best thing to do is to carry out pre-consultation with communities for bigger projects. However, the fact is that there is a problem in the system. There are a large number of people who may be looking at big projects and think they are covering everything from a planning point of view, but they cannot be sure that they can...

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