Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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Question 239: To ask the Minister for the Environment, Heritage and Local Government his views on correspondence (details supplied) regarding tenders for a proposed housing development in County Kildare; when his Department received recommendations from the local authority concerned in relation to this tender; the reasons for the delays which have arisen to date with the proposal; the reason it is not possible to renegotiate the preferred tender having regard to the urgent demand for housing that exists in the area and the considerable delays which will inevitably ensue if the entire tender process is to be recommenced; and if he will make a statement on the matter. [31589/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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My Department approved a tender for this project on 29 August 2007. The local authority concerned, however, were unable to progress the matter until mid 2008.

In the interim, under the Government's Construction Procurement Reform Process introduced to help address concerns about the extent of cost overruns on public works contracts, new contract procedures came into force. These new contract procedures were announced in October 2006 and, following a generous transition period, were fully implemented from 13 February 2008.

On 7 August 2008 my Department informed the local authority that these new procedures are applicable in the case of this project. This matter was discussed further on 14 August last at a meeting between Council officials and my Department, and it was agreed that the new contract procedures must be complied with. Should the local authority choose to re-tender for the project, the use of the new form of contract will provide greater certainty in terms of cost and delivery of the project and ensure that best value for money is achieved.