Liz O'Donnell (Dublin South, Progressive Democrats)
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Question 235: To ask the Minister for Finance the status of plans to introduce fixed price contracts for future public projects; the way in which such contracts might be framed in order to ensure proper standards of construction, viability of smaller firms and the pay and conditions of workers are maintained; and if he will make a statement on the matter. [34782/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy will be aware, the Government decided in May 2004 to reform construction procurement so that greater cost certainty, better value for money and more cost effective delivery of capital works projects can be achieved. My Department, with the assistance of the Government contracts committee for construction, GCCC, specialist legal drafters and external technical expertise, has developed a suite of new draft standard forms of contract and conditions of engagement for construction related services to give effect to this decision. The aim of these documents is to move towards fixed price, lump sum contracts which are tendered on a competitive basis with optimum risk transfer.

Consultation with the construction industry and the relevant professional bodies on these draft documents took place from the end of July of this year until late October. My Department and the GCCC have examined in detail the issues raised and concerns expressed during this phase of consultation and responded formally to the industry and professional body representatives. It is intended to complete the consultation process as soon as possible and have the new contracts available for use in early 2006.

The draft contracts include a provision which requires contractors to ensure pay and conditions of employment comply with the law and are not less favourable than the terms of the registered employment agreements for the construction industry for those employees to whom the agreements apply. I appreciate the concerns of small and medium sized enterprises in the construction sector. To help address some of their concerns separate contract conditions will be developed to deal with minor works.