Bernard Durkan (Kildare North, Fine Gael)
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Question 127: To ask the Minister for Finance if the measures he has taken to date in 2005 are sufficient to eliminate the prospect of cost overruns in respect of public contracts or procurements; if all Departments are compliant with his requirements or directives in this regard; and if he will make a statement on the matter. [38944/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 235: To ask the Minister for Finance his proposals to eliminate future cost overruns and overspends in respect of public procurements or contracts; and if he will make a statement on the matter. [39212/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 247: To ask the Minister for Finance the number of State contracts or procurements in respect of which there are cost overruns in the past five years; the full extent of such overspends; and if he will make a statement on the matter. [39224/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 127, 235 and 247 together.

The primary responsibility for the procurement, management and implementation of capital projects rests with individual Departments and public bodies under their aegis subject to compliance with general conditions of sanction and accountability. Accordingly, details in respect of individual projects or contracts are a matter for the relevant Minister. My Department has put in place an integrated set of actions to help address the issues of better management and implementation of capital programmes and projects to ensure a much closer alignment between the agreed tender price and the final outturn cost and minimise the potential for cost overruns. These include the five year rolling multiannual capital envelopes framework, guidelines for the appraisal and management of capital expenditure and a programme of reform of construction procurement.

Regarding construction procurement reform, the Government decided to introduce new arrangements to reduce the scale of and scope for cost overruns. The key objectives are 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.

An intensive consultation process has been taking place with the construction industry and the relevant professional bodies on these draft documents since July of this year. Amendments have been proposed to address industry concerns and the intention is to finalise the consultation process shortly. This should help fine tune the new draft forms of contract in a way that seeks to further address industry concerns but 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. These initiatives should enhance the management of capital programmes and help to improve the cost effective delivery of construction projects over the medium to longer term.