Written answers

Tuesday, 30 June 2009

Department of Finance

Public Service Contracts

11:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 134: To ask the Minister for Finance if his attention has been drawn to the failure of some main contractors to pay sub-contracts in respect of public contracts; if it is intended to draw such issues to the attention of main contractors particularly when further payments fall due; and if he will make a statement on the matter. [25789/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am not aware of any particular situation where a delay in payment by a main contractor to a sub-contractor has occurred on a public works contract. I should explain to the Deputy that a contracting authority is only responsible for payment for work satisfactorily done by a main contractor under contract with the contracting authority. The contractual relationship on a project with a subcontractor is different. In such cases the contract is between the main contractor and the subcontractor with no other party having privacy to it. Therefore, if there is a problem regarding payment to a subcontractor it is a contractual matter between main contractor and subcontractor and must be resolved through the use of the relevant provisions in the contract.

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