FINGAL COUNTY COUNCIL went ahead with work on a number of multi-million euro projects without going through a competitive tender process, an audit has found.
The work included a combined €1.245 million for engineering consultants to design an upgrade to a busy road interchange in Blanchardstown, and a more than two-fold increase in the costs for developing cycle lane schemes which were awarded to a company without the usual tender procedure.
The audit also criticised the council for a €350,000 land swap it did with a GAA club, which it said the council completed “without an independent valuation” of the cost of the four-hectare site it offloaded.
In another project, €1.1 million was paid to a consultant for improvement works for a junction in Donaghmede which the council said was “for all stages of the project”, with “only the preliminary design stage” going through a competitive tender process.
Fingal County Council told the auditor that it would review its processes around the works, while outlining its reasoning for the actions it took.
In his annual report on the local authority’s finances, carried out for the Department of Housing and Local Government, auditor Daragh McMahon said when hiring for the exchange upgrade at Snugborough in Blanchardstown, the county council had appointed engineering consultants for designer services and site supervision services at a cost of €499,000 and €746,000.
“This appointment was made through a non-competitive tender process,” he reported.
While the council defended its use of the consultants as due to them having built up considerable experience on the project already by prior work, the council committed to reviewing the practice.
In its response to the auditor, contained in the report, it said that it could “minimise technical and commercial risk” to the council in case of delays by “retaining the expertise” of the consultant.
It added that the design for the scheme is “particularly complex”, as it involves works over “numerous” utilities and telecoms infrastructure and over existing infrastructure such as the N3 national primary road, which have to be kept operational during works.
“Due to this high level of scheme complexity, there is a high potential for costly and disruptive construction claims arising,” it said.
“The staff proposed by the consultant for the site supervision team have been previously involved in the design for the scheme including utility diversions. The fees proposed have been evaluated and are considered value for money given the scale and complexity of the project and the resources required,” the council said.
McMahon also flagged that the council entered into a deal with O’Dwyers GAA club in Balbriggan, to exchange lands to facilitate the development of Bremore Regional Park and a new sports facility for the club.
The council purchased land of three hectares from the GAA club at a cost of €3.5 million. A valuation report provided to the auditor for the purchase of this land, which was dated from 2016, valued the land at €3 million.
“The council sold their land interest (4.14 hectares) under a 250-year lease for €350,000,” the auditor noted.
“No valuation report was sought prior to the disposal of this land interest. It is essential that the Council do not purchase or sell land without an independent valuation.”
McMahon added that he was informed that the council has introduced a new valuation programme in the Property Services Division and this will be reviewed at the next audit.
As part of its response, the council said an independent valuer was engaged by the council to provide an initial valuation report in 2016 and to assist with the protracted negotiations with the Club’s Valuer, ultimately final heads of terms were negotiated and agreed.
“The Auditor’s comments are noted and the council will ensure that valuation reports are available on completion of negotiations and retained on file,” the council said.
The auditor also flagged concerns around the design and construction of cycle schemes.
These were included in the National Transport Authority’s (NTA) 2020 Stimulus Programme which saw Council awarded funding for the construction of cycle lane schemes.
But as with the Snugborough scheme, McMahon said the “contractor was appointed by the council without going to tender”.
He also outlined how the original tender value and the current value of the contracts had changed significantly: going from €789,000 for a scheme for Hartstown and Huntstown, to an additional commitment of €2,553m. Similarly, a cycle scheme for Rathingle and Rivervalley went from costing €733,000 to €2.447 million.
In its response, the council said it found the Active Travel schemes had “evolved quickly” since it was set up two years ago.
Its chief executive Ann Marie Farrelly said: “The initial funding for this department was as part of a Government stimulus package in 2020 which required the rapid delivery of active travel infrastructure.
“To date… 23kms of protected cycleway has been delivered across Fingal. New capital codes have been set up for each job with the relevant expenditure allocated to the appropriate codes and a full reconciliation of the 3 schemes outlined above is underway.”
The council’s project for upgrading the junction at the well-known Hole in the Wall pub also came under the spotlight – the auditor said a consultant was paid €1.1 million “for all stages of the project”, with “only the preliminary design stage” going through a competitive tender process.
The council said it would also review this process for future jobs, but added that the tender sum did not include a number of “employer-instructed changes and contractor claims that came to light over the course of the construction stage”.
In addition, it said the project was curtailed by the shutting down of all sites during the COVID-19 pandemic, which it said had a “significant impact” on the scheme construction stage.
“The final agreed amount was determined by the appointed conciliator. Taking all factors in to consideration the settlement reached was considered prudent,” it said.
“We note the auditor’s comments with regard to the appointment of the consultant and will review the process around this for future procurements.”
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