Written answers

Tuesday, 29 September 2015

Department of Public Expenditure and Reform

Public Procurement Contracts

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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307. To ask the Minister for Public Expenditure and Reform the assistance available from his Department to a person (details supplied) in respect of building work carried out; and if he will make a statement on the matter. [33358/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Office of Government Procurement, an office of the Department of Public Expenditure and Reform publishes a suite of public works contracts which sets out clear conditions governing the payment terms between public bodies and the contractors they engage to undertake public works.  Disputes, including disputes over payment, which may arise between a public body and the contractor they have engaged during the course of the project are managed in accordance with the dispute resolution mechanisms contained in the contract.

The Government does not publish forms of contract governing the relationship between private entities since this is a matter for those entities to agree between themselves.  A public body does not have any contractual relationship with subcontractors engaged by a main contractor and, furthermore, will not have any knowledge of the terms agreed between the parties.  It is for this reason that a public body is not in a position to intervene in payment disputes between main contractors and their subcontractors or between subcontractors and sub-subcontractors.

Government recognises the poor payment practices engaged in by some in the construction industry and has supported Senator Feargal Quinn's Private Members Bill, now enacted as the Construction Contracts Act 2013.  The Act sets down minimum requirements for construction contracts; should a contract fail to meet those requirements then minimum payment terms are imposed through the legislation.  It also provides statutory rights to suspend work for non-payment and to refer a payment dispute to adjudication.

Although the legislation was developed by my Department, responsibility for the administration of the Act and its commencement transferred to the Department of Jobs, Enterprise and Innovation in November 2014.  I understand that the steps necessary to commence the Act are nearing completion with the recent appointment of the Chair of the Panel of Adjudicators and the appointments process for the Panel itself is under way.  Once the Panel members are appointed the Act may be commenced by Statutory Instrument.

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