Brendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

586. To ask the Minister for Education and Skills if she will urgently review and reform tendering criteria for new school building projects in view of the fact the current criteria effectively lock out many localised but capable building contractors as turnover requirements for previous years are set unrealistically high; and if she will make a statement on the matter. [15156/20]

Norma Foley (Kerry, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

For small works using the Short Form of Contract, PWCF6, (under €1m) the average annual turnover over the previous three years must be not less than 1.5 times the sum tendered for the project.  These projects would be tendered under an Open Procedure where the contractor can decide in advance whether they can meet the minimum standards specified in the Declaration of Suitability for Contractors for Small Works (Open Procedure Only.

As projects under €1m in value would have relatively short durations and a contractor of modest size could complete two or more of these in a year, average annual turnover of 1.5 times the tendered sum is not considered a high threshold.

For projects with an estimated cost over €1m in value, turnover levels are calculated in accordance with the Department’s website guidance note.

The Guidance provides that for School building projects with an estimated cost over €1m turnover levels should be in the range 100% to 150% of the annualised turnover of the estimated capital value of the project.  The actual percentage applied, within this range, should relate to the complexity of the project and should be based on the table below.  In selecting the appropriate percentage within the sub-ranges below it is recommended that consideration should be given to the degree of complexity. 

This guidance note is in accordance with central guidance on turnover from the Office of Government Procurement and relates the turnover requirement to the complexity of the project. My Department does not consider that a review or change of turnover levels is required.