In the last five years a total of nine major school building projects have been terminated due to an insolvency event involving the main contractor. Two other major school building projects have been terminated due to a contractor's default for reasons other than insolvency. Five of these projects were subsequently completed and handed over to the school authorities, four are currently being completed by completion contractors and the remaining two projects are in the process of procuring a completion contractor to complete the works. Please see the attached document for details of the eleven projects.
The original value of the eleven projects was circa €44m. There is a bond in place for each of the eleven projects. The bond is used to cover costs that would otherwise accrue to the Employer (i.e. the Department, School, VEC etc.) on foot of a contractor's failure to complete the works. As such the Employer's financial exposure is generally minimal. Negotiations are ongoing with regard to a number of these projects and in some cases the full cost of re-tendering and completion of the works is not yet known. The Deputy will appreciate that it is not possible to release commercially sensitive cost information which is currently the subject of negotiations or tender competitions. To do so would undermine the Employer's position with regard to such negotiations.
The contract used for the construction of major school projects is the Public Works Contract. This contract was developed by the Department of Public Expenditure and Reform and is used across the State Sector for all capital works. With regard to the project in Kilkenny, the Deputy will be aware that the contractor's obligation to complete the works was recently terminated. Therefore it is not legally possible to complete the project under the existing contract.
My Department does not hold details of sub-contractors engaged on major school building projects. A school building project is a complex arrangement of contractual relationships between the client, the main contractor, specialist sub-contractors, domestic sub-contractors, suppliers of materials, suppliers of plant etc. In general all sub-contractors employed on school building projects are employed directly by the Main Contractor or indirectly by the Main Contractor through other sub-contractors.
Details of Major School Building Projects where the Contractor’s obligation to complete the works was terminated (2008 to 2012)
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County
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Roll Number
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School Name
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Reason for Re-tender
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Current Status
|
Year of Termination
|
|
Dublin City
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20139T
|
Inchicore NS, Sarsfield Road, Dublin 10
|
Insolvency Event
|
Under Construction
|
2011
|
|
Dun Laoghaire Rathdown
|
70030E
|
Senior College, Dún Laoghaire, Eblana Avenue, Dún Laoghaire, Co Dublin
|
Insolvency Event
|
Under Construction
|
2011
|
|
Galway City
|
62970K
|
Coláiste Iognáid SJ Bothar na Mara
|
Insolvency Event
|
Under Construction
|
2011
|
|
Kildare
|
17662R
|
Scoil Bhride NS, Kill
|
Insolvency Event
|
Project Completed
|
2009
|
|
Kildare
|
17674B
|
SN Aine Naofa, Ard Cloc, Straffan
|
Termination due to Contractor Default
|
At tender stage
|
2012
|
|
Kilkenny
|
61580P
|
Loreto Secondary School, Granges Road
|
Termination due to Contractor Default
|
At tender stage
|
2012
|
|
Limerick
|
13026P
|
Kilfinane National School
|
Insolvency Event
|
Project Completed
|
2011
|
|
Limerick City
|
64201T
|
Ardscoil Ris, North Circular Rd, Limerick
|
Insolvency Event
|
Under Construction
|
2011
|
|
Meath
|
18016O
|
S N Columbain, Ballivor
|
Insolvency Event
|
Project Completed
|
2008
|
|
Offaly
|
17523D
|
SN Cronain Naofa, Dromakeenan
|
Insolvency Event
|
Project Completed
|
2010
|
|
Roscommon
|
65100S
|
Scoil Mhuire, Strokestown, Co Roscommon
|
Insolvency Event
|
Project Completed
|
2011
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