Jonathan O'Brien (Cork North Central, Sinn Fein)
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70. To ask the Minister for Public Expenditure and Reform the role of the Government Contracts Committee for Construction in derogations from standard forms of public contracts; the person or body that is ultimately responsible for approving the public contract used by contracting authorities for capital projects; and if he will make a statement on the matter. [10632/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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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 from 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 and has been availed of by a number of sanctioning authorities.

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. Whilst the GCCC will advise and comment on the proposed strategy 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.

The GCCC was established under Section 11 of Circular 40/02. It is a forum for the discussion and development of public policy in the tendering and contracting of all aspects of construction projects (apart from PPPs).

The OGP provides the functions of Chair and Secretariat to the GCCC. The membership of the GCCC includes representatives from the main capital spending bodies and departments with a significant involvement in public sector construction related activities.

Relevant departments and bodies nominate representatives with either technical or administrative backgrounds and these nominees may change from time to time. Special advisors/consultants or other guests may be invited to participate in the work of the Committee as may be required from time to time.