Jan O'Sullivan (Limerick East, Labour)
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Question 149: To ask the Minister for Finance his response to concerns expressed by the Construction Industry Federation regarding the nature of the fixed price lump sum contracts proposed by Government for major construction projects; and if he will make a statement on the matter. [38407/05]

Brian O'Shea (Waterford, Labour)
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Question 150: To ask the Minister for Finance his proposals to meet the concerns of a person (details supplied) in County Waterford in regard to Government contract reform; and if he will make a statement on the matter. [38430/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 149 and 150 together.

The Government decided to reform construction procurement to achieve greater cost certainty, better value for money and more cost effective delivery of capital works projects. My Department, with the assistance of the Government contracts committee for construction, GCCC, specialist legal drafters and external technical expertise, has drafted a suite of draft standard forms of contract and conditions of engagement for construction related services. These provide for the introduction of fixed price lump sum contracts tendered on a competitive basis with appropriate risk transfer to give effect to the Government decision.

Consultation with the construction industry and the relevant professional bodies on these draft documents has been taking place since July of this year. During these extensive discussions, the views, comments and concerns of the construction industry and the professional bodies have been outlined in considerable detail, including those referred to by the Deputies. This exchange of views and constructive engagement is very valuable. My Department and the GCCC have examined in detail the issues raised and concerns expressed during this consultation process and have responded proposing appropriate changes to the draft contracts or clarification via guidance material to address many of the concerns raised.

The intention is to finalise work on the new contracts through further constructive consultation on both sides, which is under way. This process should help fine tune the new draft forms of contract in a way which seeks to further address industry concerns but which does not compromise Government policy.

We want to have the new contracts and related material available for use in early 2006 and my Department looks forward to continued engagement with the industry and professional bodies with a view to meeting this deadline.