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MINISTER FOR PUBLIC Expenditure Paschal Donohoe and Minister of State with responsibility for Public Procurement Ossian Smyth have announced amendments to the Public Works Contract to ensure that contractors will face less financial risk from increasing building material costs.
The package aims to prevent contractors being adversely effected by increases in building materials that take place while they are delivering public works projects on behalf of the state or local authorities.
Contracting Authorities will now be required to provide for inflation above a pre-defined threshold in the project budget, rather than transferring that risk to the contractor.
In an example given by Donohoe’s department, a local authority could set the price variation for a project at 5% in its contract with a developer.
If steel increased by 12% on the relevant Central Statistics Office index for building material inflation, the contractor would get a 7% increase in payment for the steel used.
On announcing these changes, Minister Donohoe said that the construction industry had faced significant challenges in the past two years.
“Improving the risk/reward balance of public works contracts through the introduction of caps on liability and reform of the price variation mechanisms will encourage a greater level of competition for public works tenders,” he said.
“This will lead to an improved quality of bids received and maximise value-for-money, key priorities for my department in delivering the National Development Plan.”
“We continue to develop a comprehensive and agile response to the risk posed by exceptional levels of inflation and supply disruptions that create a challenging and uncertain environment for project delivery.”
Currently contractors may be compensated for inflation in excess of 15% for materials and fuel.
This threshold is being reduced to a range between 3-10% from which contracting authorities will select a level that reflects the project’s main inputs.
Minister Smyth also announced measures to allow contractors to more accurately record the amount of carbon used in construction.
Building Information modelling (BIM) is a process which takes into account the environmental impacts of decisions made about material selection, foundation design and energy use and production.
“Combined with the data handling capacity of BIM and the availability of greater levels of information on materials and building components, contracting authorities and their project teams can review a project’s environmental standing at all stages of its delivery lifecycle,” Smyth said.
“The information recorded can be used in the lifecycle of the asset to support decisions around sustainability and the circular economy.”
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Shatter resign now
Callinan resign now
Between the GSOC affair and the McCabe dossier, if there was no cover up going on, then 3 months out from the local elections this government should be falling over themselves to be seen to spearhead the push for an open and independent investigation into all of these matters.
Instead, we have a ‘review’ and an investigation into whenther an investigation is needed.
It stinks, and the damage it has done to public perception of our institutions of law and order for the sake of protecting the minister and commissioner is truly sickening.
McCabe for commissioner
Maurice McCabe will be the only 1 to suffer here, Shitter & co will never be beaten.
In the end your right.
correct cos the people of ireland sat back and let it all happen instead of demanding justice and the right thing be done!! shame on us all for continually giving these corrupt fcukers a free pass to keep screwing the good left in the country!!!!!!!!!!!!!!!!!!!!!
A LOT OF €€€€€€€€€
“When a finger points at the moon, the imbecile looks at the finger”.
Confusius
Think, finger = whistle blower
imbecile = MINISTER.
‘Whether it is considered desirable in the public interest for the Government to establish a commission of investigation’. These words kinda sum up the get out clause. Whitewash, I’ve heard there is quite an abundance around Merrion Square
the people of ireland should be out on the streets demanding an end to all this diversionary bullshit, spin, lies, corruption etc.
instead our responce is
carry on as normal lads cos we’re never going to say enough is enough, get as powerful and dirty as ye like, don’t even bother to hide it anymore cos we all know what’s going on, tis great craic, please sir, can i have some more!!
Maurice Mc Cabe for President as he is the only one with integrity. The commissioner has no place to go. Why is it in Ireland nobody resigns? I bet he may retire soon and ride off with both satchels full of cash. If he were fired he may even face prosecution. Shatter could face the same but I doubt it.
Interesting to note Shatter will not be interviewed. From statements he has made to the Dail and in public I would have thought he has all the facts and figures to help this investigation….
Seems shatter has shit on kenny and co
And after all that – when the Taoiseach gets the report – what then????
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