Bernard Durkan (Kildare North, Fine Gael)
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Question 76: To ask the Minister for the Environment, Heritage and Local Government if he has issued instruction to the various local authorities the result of which is that contracts already entered into in respect of water, sewerage or housing schemes will be deferred; the degree to which this is expected to delay investment in infrastructure; the extent to which this is expected to postpone remedial or upgrading works necessary to prevent the issue of pollution of ground water, rivers, streams and lakes; and if he will make a statement on the matter. [27625/08]

John Gormley (Dublin South East, Green Party)
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In October 2006, the Department of Finance, which is responsible for public procurement rules, issued instructions requiring all traditional public works projects to use new forms of construction contracts from February 2007 onwards. The new forms of contract were introduced to achieve greater cost certainty, better value for money and more timely and efficient delivery of publicly funded projects. Contracting authorities were given the option of either switching over to the new forms of contract or completing any contract documents on which detailed drafting was already underway. This interim arrangement was brought to a conclusion in February 2008.

Since then, the Minister for Finance has agreed that, in order to avoid delay in project delivery, there should be some flexibility in relation to the application of the new forms of fixed price contract and that, subject to certain conditions, tenders for water services contracts received before 6 May 2008 using the old form of contract should be allowed to proceed. Relevant local authorities have been informed accordingly.