Written answers
Thursday, 14 February 2019
Department of Public Expenditure and Reform
Public Procurement Contracts Data
Jonathan O'Brien (Cork North Central, Sinn Fein)
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84. To ask the Minister for Public Expenditure and Reform the capital projects since 2011 that proceeded on a basis other than a fixed-sum contract, in tabular form. [7550/19]
Paschal Donohoe (Dublin Central, Fine Gael)
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Government policy requires the use of the Capital Works Management Framework (CWMF) on all projects delivered under the Exchequer-funded element of the public capital programme. The public works contract is a key component of the CWMF and is a lump sum, fixed-price contract which is to be used on all public works projects. It is possible for public bodies to seek a derogation from the use of the standard forms of contract from the Government Contracts Committee for Construction (GCCC). This process has been availed of by sanctioning authorities for large or complex projects or for those with specific requirements which do not naturally fit with the standard ‘lump sum’ contracts.
It is important to note that a derogation, if agreed, does not approve the approach or strategy of the Contracting Authority, but simply acknowledges that the circumstances are such as to warrant a different approach than the standard. It is a matter for the Contracting Authority and the Sanctioning Authority to satisfy themselves as to the adequacy of the approach with regards to compliance with procurement rules and project appraisal in accordance with the Public Spending Code. Accountability for the procurement strategy rests with the Contracting Authority.
Applications for derogations were received by the GCCC in relation to the following capital projects.
| Department/Public Body | Project |
|---|---|
| Dept. of Communication, Energy & Natural Resources/Sustainable Energy Authority of Ireland (SEAI) | Energy performance contracting initiative (National Energy Service Framework (NESF)) This is a template form of contract published by SEAI. It is used in energy retrofit projects where the tenderer bids guaranteed energy savings that are delivered on foot of building fabric, heating and lighting upgrades which are funded up front by the contractor and paid back over a defined period by the client. |
| Dept. of Communication, Energy & Natural Resources | Use of NEC3 for remediation works at the disused mining site at Avoca, Co. Wicklow. This project used a target cost contract and was granted a derogation on the basis that it was not possible to define the extent of remediation works to the underground mine shafts prior to the award of the contract. |
| Dept. of Communication, Energy & Natural Resources/Sustainable Energy Authority of Ireland (SEAI) | Use of the Local Energy Supply Contract (LESC) to finance, design, build, supply fuel, operate and maintain biomass heat and power systems and related projects. This is a specialist template contract developed by SEAI to engage energy supply companies for district heating and power schemes. |
| An Post | GPO: Witness History 1916 Centenary Project This project used an amended form of the public works contract to facilitate the use of acceleration in recognition of the fixed completion date for this project to ensure it would be completed and open in advance of Easter 2016. |
| National Paediatric Hospital Development Board (NPHDB) | NPHDB on their Procurement Strategy. The contract was developed by NPHDB. It is a bespoke form based on the standard form of public works contract for building works designed by the Employer amended to suit the 2 stage contract award. |
| Dept. of Agriculture, Food & Marine | To use the standard FIDIC form of Contract for proposed dredging and reclamation works. A specialist form of contract developed specifically for dredging works that permits re-measurement of the dredged materials to reflect the varying costs of disposal associated with the different material removed in marine and estuary dredging projects. |
| Grangegorman Development Agency | FIDIC Design, Build and Operate (DBO) Gold Book Contract Approval for Grangegorman Energy Centre. There is no standard form of DBO contract published under the CWMF. |
| Transport infrastructure Ireland (TII) | Use of NEC3 option C (Target Cost) contract for the upgrade works on the N8/N25/N40 Dunkettle interchange in Cork City. This contract makes provision for early contractor engagement on design solutions and adopts a target cost in recognition of the possible variation in the price as the construction solution is finalised. |
| Office of Public Works (OPW) | Amendments to the Public Works Contracts for Building Works Designed by the Employer (PW-CF1 v2.0) for use on projects involving conservation, restoration and refurbishment works on heritage and other existing buildings. Amendments were undertaken to the standard form of public works contract to permit limited contingency sums for certain specialist works that cannot be fully defined in advance of the works commencing. |
| Cork County Council | Use of NEC3 Option C – Target Cost with Activity Schedule for East Tip, Haulbowline Island Remediation Works (funded by the Dept. of Agriculture, Food & Marine). The target cost contract was adopted on this project in recognition of the uncertain ground conditions and the make-up of the waste material that was to be removed from the dump site adjacent to the former Irish Steel plant. |
| Transport infrastructure Ireland (TII) | Metrolink – initial engagement with GCCC on TII's outline procurement strategy. A form of contract has not been decided upon at the point of the engagement. |
| Údarás na Gaeltachta | Contract Strategy and Procurement for Design, Build, Operate (DBO) to use the FIDIC Gold Book conditions of contract for the Upgrade Works to Wastewater Treatment Plant and Treated Effluent Disposal at Eastát Tionscail, An Tulaigh, Co. na Gaillimhe. There is no standard form of DBO contract published under the CWMF. |
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