Written answers
Wednesday, 2 November 2005
Department of Finance
Infrastructural Development Funding
9:00 pm
Róisín Shortall (Dublin North West, Labour)
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Question 299: To ask the Minister for Finance his proposals in respect of the introduction of fixed price contracts for infrastructure developments; and his target date for their introduction. [29073/05]
Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government decided in May 2004 to reform construction procurement to help ensure that taxpayers are protected from the financial consequences of unnecessary delays and, in turn, cost over runs on capital projects. At the heart of the reforms is an attempt to ensure cost effective and timely delivery of capital projects. The aim of the new contracts is to help ensure that there is a fair sharing of risks and that contractors take on those risks that they are able to manage and control. New conditions for the employment of construction consultants are designed to ensure that professional fees do not escalate with project costs.
A suite of four new standard forms of construction contract and new conditions for the engagement of construction consultants have been drafted with input from the Government contracts committee for construction and technical support from legal drafters and external technical expertise. A process of consultation with the construction industry on the draft contracts and related material is in train and, following final completion of this process, my intention is to have the new contracts available for use in early 2006.
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