Written answers

Wednesday, 7 March 2012

Department of Public Expenditure and Reform

Public Procurement

6:00 pm

Photo of Arthur SpringArthur Spring (Kerry North-West Limerick, Labour)
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Question 68: To ask the Minister for Public Expenditure and Reform the number of contracts of public works that have been awarded to companies registered outside of Ireland since 2008; if he will provide a list of the countries in which these companies are registered; and if he will make a statement on the matter. [12987/12]

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Information on contract placement is currently available for the years 2008-2010 and relates to above-EU threshold contracts only and is contained in the tabular statement. The EU Works threshold for 2008/2009 was €5,150,000 and for 2010 was €4,845,000. Data in respect of 2011 will not be available until the third quarter 2012 as this data is collated a year in arrears.

The Deputy should be aware that the figures contained in the table relate to the number of contracts placed which were above the EU Threshold for the year in question and must not be interpreted as indicative statistics for the overall procurement spend. It must also be borne in mind that these statistics relate only to above threshold procurements where contract award notices were published and where the nationality of the winning tenderer was disclosed.

Works Contracts2008
Irish SuppliersForeign SuppliersTotal
Central Government10010
Local Authorities1080108
Utilities42547
Total1605165
1 USA Company4 UK Companies
Works Contracts2009
Irish SuppliersForeign SuppliersTotal
Central Government505
Local Authorities72274
Utilities12012
Total89291
1 UK Company1 Spanish Company
Works Contracts2010
Irish SuppliersForeign SuppliersTotal
Central Government12012
Local Authorities64165
Utilities11112
Total87289
1 UK Company1 Northern Irish Company

Photo of Arthur SpringArthur Spring (Kerry North-West Limerick, Labour)
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Question 69: To ask the Minister for Public Expenditure and Reform if he will confirm that all authorities responsible for awarding public works contracts are aware of the requirement for all main contractors to submit a certificate of compliance for pay and conditions of employment with each interim valuation; whether all authorities are requesting and receiving such certificates; and if he will make a statement on the matter. [13001/12]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The public works contracts were developed and implemented on a phased basis from 19 February 2007 (Department of Finance Circular 33/06 refers); and applicable to all projects since 13 February 2008 (Department of Finance Circular 04/08). They must be applied to employer designed and "design and build" public works projects in Ireland that are procured directly by a Government Department, bodies under its aegis, including local authorities or other relevant bodies that provide public services (e.g. schools, voluntary hospitals, etc.).

A public works contract contains provision under the Payment and Conditions of Employment clause, which includes measures such as the certificate of compliance to ensure those employed on public works sites are paid in accordance with the Registered Employment Agreement for the Construction Sector. Supporting guidance notes have also been developed for use with these contracts. Both the contracts and guidance notes form part of the Capital Works Management Framework (CWMF), which was developed to deal with all aspects of the management of capital projects. The CWMF is a web-based facility maintained by my Department and consists of a suite of best practice guidance, standard contracts and generic template documents. Department of Finance Circular 06/10 made it mandatory for contracting authorities to comply with all aspects of the CWMF.

From November 2006, centralised training programmes on the new Construction Contracts were provided by the Department of Finance for key public sector practitioners and private sector construction professionals who are engaged by contracting authorities on public sector projects to ensure that the new contract conditions are used appropriately across the public sector.

The clause on Pay and Conditions of Employment which includes the provision of the certificate of compliance to which the Deputy refers is referenced in three Department of Finance Circulars; 33/06, 04/08 and 06/10. Guidance note GN 3.1 – Implementation Process available on my Department's construction procurement website: www.constructionprocurement.gov.ie also provides guidance for contracting authorities on the contract administration stage of a public works project and the manner in which the certificate of compliance is to be used is set out under the section titled 'Interim Payments'. The standard Rates of Pay and Conditions of Employment Certificate (model form MF 1.13) is available on the same website. Under the clause titled 'Payment' in the public works contracts, a contracting authority may not make a payment to a contractor unless the contractor's payment application is accompanied by a copy of MF 1.13 signed by the contractor.

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