asked the Minister for Finance the measures which have been introduced to reduce costs and to maximise efficiency on public contracts; if he will outline the operational position on cost-saving measures such as the use of fixed-price contracts, competitive consultants' fees, design-and-built contracts and any other initiatives which are planned in this area.
Written Answers. - Public Contracts.
44.
Procedures governing the award of public contracts were codified and published by my Department in July 1986 in the booklet An Outline of Government Contracts Procedures. The booklet, with a view to reducing costs and maximising efficiency on public contracts, highlighted the importance of, inter alia, the forward planning and the monitoring of projects and, as well, the need to avoid cost overruns on public construction projects.
The position in regard to the specific matters referred to by the Deputy is as follows.
Fixed Price Contracts: the adoption of these on a much more widespread scale was advocated in the booklet. They are now in increasing use in Government Departments, and the question of their obligatory introduction in further cases is being considered at present by my Department.
Consultants' Fees: increasingly consultants are now being appointed following a competitive precedure and remunerated on the basis of negotiated fees rather than by reference to an established professional scale.
Design-and-build Contracts: these have always been admissible on a competitive basis and their use is encouraged in appropriate cases.
Other Initiatives: it is proposed to review, as appropriate, in the near future the operation of the measures announced in the booklet referred to above. The question of what further action may be needed in relation to the specific matters mentioned above, and of the need for fresh initiatives, will be considered in the light of the outcome of that review.