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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: Would the witnesses regard Ireland as an outlier in the type of road construction contract we have under the public works framework?

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 assume the witnesses have been back to the Office of Government Procurement on many occasions looking for a change. How long have they been actively looking for a risk-based model between the contractors and the agency who contracts them, such as the TIIs of this world?

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: Did the witnesses support the fixed-price model at that time?

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-----

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