Vol. 576 No. 6
79 Mr. M. Higgins asked the Minister for Finance further to his address to the Construction Industry Federation business conference on 6 November 2003, the specific steps he plans to take to protect taxpayers on escalating project costs; and if he will make a statement on the matter. [30086/03]
The primary responsibility for the management and implementation of capital projects rests with individual Departments and relevant agencies. However, given the scale of outturn cost on public capital projects against original estimates there is a need to strengthen the procurement process. I, therefore, intend to bring proposals to Government in the new year to put in place more cost effective arrangements for the procurement of publicly funded construction projects and related professional services.
The proposals for construction contracts will include a more optimal distribution of risk between contracting authorities and contractors, with the objective being to adopt best private sector practice where appropriate. One example would be the "design, build and transfer" approach. This will involve changes to the standard forms of construction contracts or, where appropriate, the development of new forms of construction contracts.
As I mentioned in my budget speech, I intend to change the current procedure for hiring consultants on publicly funded construction projects. In many cases at present, the greater the out-turn cost the greater the consultants' fees. This is no longer appropriate. Where traditional construction contracts are in use, competitive tendering will become the norm for the selection and engagement of these consultants. The overall objective will be to introduce greater pricing certainty into public capital projects and significantly reduce cost over-runs in future years.
