Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Department of Finance Circular 33/06 requires all public works projects that are delivered under the Exchequer-funded element of the Government's capital plan to be procured in accordance with the provisions laid down in the Capital Works Management Framework (CWMF). The CWMF is an integrated set of contractual provisions, guidance material, technical templates and procedures which cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements. 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.

Section 7 of Circular 33/06 provides for a derogation from the use of the standard forms of contract by means of an application to the Government Contracts Committee for Construction (GCCC). This process may be used for complex or large projects which have specific requirements which do not naturally fit with the standard lump sum contracts.

The National Paediatric Hospital Development Board (NPHDB) commenced their formal engagement with the GCCC in May 2014 with a view to securing a derogation from the requirement to use the standard lump sum, fixed-price public works contract. The GCCC supported the principle of the procurement and contracting strategy proposed by the NPHDB on the basis of the risk presented by a project of this scale and complexity and the programme set for the opening of the hospital.

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.

The response provided by my colleague the Minister for Health, Simon Harris T.D. to a similar question posed by the Deputy (PQ 109, 27/2/19 refers) sets out the procurement and contracting strategy that was undertaken by the NPHDB.