Joan Burton (Dublin West, Labour)
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Question 145: To ask the Minister for Finance if his Department has conducted an assessment of the effect that the introduction of the new public sector contracts being introduced on 19 February 2007 will have on sub-contractors; if there is measurement of the impact the changes will have on sub-contractors; and if he will make a statement on the matter. [6978/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government decided to reform construction procurement to help achieve greater cost certainty, better value for money and more cost effective delivery of public works projects. My Department, with the assistance of the Government Contracts Committee for Construction, specialist legal /technical expertise and, following intensive consultation with the construction industry, developed a suite of five new Forms of Construction Contract and Standard Conditions of Engagement for Construction Consultants, to give effect to the Government decision. The Conditions of Engagement apply from 1 January 2007 and the new Construction Contracts apply from 19 February 2007. These reforms in the area of construction procurement are a core element in the implementation of my Department's Value for Money agenda.

The new public works contracts do not interfere with the contractual relationship between main contractors and domestic sub-contractors. However, as part of the drive to achieve better value for money and greater cost certainty in public works projects there has been a change in the contractual relationship between public sector clients and main contractors in relation to specialist sub contractors. This change has been introduced as part of the Government's reform of construction procurement. It introduces single point responsibility in the contractual relationship between the main contractor and the specialist sub contractor, in line with best practice. The impact of this change will be positive for public sector clients and, in turn, the taxpayer. The impact of the separate contractual relationship between specialist sub-contractors and main contractors is a matter for the parties to that contract to assess.