Written answers
Tuesday, 21 May 2013
Department of Education and Skills
Schools Building Contractors
Catherine Murphy (Kildare North, Independent)
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317. To ask the Minister for Education and Skills if he will detail, for each of the past four years, the number of schools that have had building contracts terminated prior to the schools completion; the reasons for the termination of the contracts; the expense incurred by his Department in seeking new tenders in each case; and if he will make a statement on the matter. [23724/13]
Ruairi Quinn (Dublin South East, Labour)
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In the past four years, the contractor's obligation to complete the works was terminated on ten major school building projects. The difficulties encountered on nine of these projects related to contractor insolvencies. The termination of the contractor's obligation to complete the works on the tenth project was due to the contractor's default. There was a bond in place for each of the ten projects. The bond is used to cover costs that would otherwise accrue to the Employer (i.e. the Department, School, VEC etc.) on foot of a contractor's failure to complete the works. As such the Employer's financial exposure is generally minimal. Negotiations are ongoing with regard to a number of these projects and in some cases the full cost of re-tendering and completion of the works is not yet known. The Deputy will appreciate that it is not possible to release commercially sensitive cost information which is currently the subject of negotiations. To do so would undermine the Department's position with regard to such negotiations.
For the Deputy's ease of reference I am supplying details of the ten projects.
County | Roll Number | School Name | Year in which issue arose | Reason for Re-tender |
---|---|---|---|---|
Kilkenny | 61580P | Loreto Secondary School, Granges Road* | 2012 | Insolvency Event |
Kildare | 17674B | SN Aine Naofa, Ard Cloc, Straffan | 2012 | Termination due to Contractors Default |
Dublin City | 20139T | Inchicore NS, Sarsfield Road, Dublin 10 | 2011 | Insolvency Event |
Dun Laoghaire Rathdown | 70030E | Senior College, Dún Laoghaire, Eblana Avenue, Dún Laoghaire, Co Dublin | 2011 | Insolvency Event |
Galway City | 62970K | Coláiste Iognáid SJ Bothar na Mara | 2011 | Insolvency Event |
Limerick | 13026P | Kilfinane National School | 2011 | Insolvency Event |
Limerick City | 64201T | Ardscoil Ris, North Circular Rd, Limerick | 2011 | Insolvency Event |
Roscommon | 65100S | Scoil Mhuire, Strokestown, Co Roscommon | 2011 | Insolvency Event |
Offaly | 17523D | SN Cronain Naofa, Dromakeenan | 2010 | Insolvency Event |
Kildare | 17662R | Scoil Bhride NS , Kill | 2009 | Insolvency Event |
Catherine Murphy (Kildare North, Independent)
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318. To ask the Minister for Education and Skills if he will confirm if contractors who have failed to complete a school building contract in the past have been awarded other school building contracts; if there are future sanctions imposed on contractors who fail to complete a school building contract; and if he will make a statement on the matter. [23725/13]
Ruairi Quinn (Dublin South East, Labour)
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In the past 4 years, in the vast majority of cases where a contractor failed to complete a major school building project this was due to insolvency issues; the contractors in question ceased to trade. Only one termination was due to issues not related to insolvency. The contractor in question has not been successful in any tender competitions for major school building contracts since the termination date. There are many reasons why a public works contract may be terminated and these are complex; due process has to be followed in each case. School building projects are tendered in line with Department of Public Expenditure and Reform guidelines and public procurement procedures; these do not currently provide for sanctions where a previous contract has been terminated.
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