All policy, guidance and implementation measures relating to capital projects are published on the Construction Procurement Reform website www.constructionprocurement.gov.ie where the Capital Works Management Framework provides a suite of best practice guidance, standard contracts and generic template documents, which are available to download for all contracting authorities to provide a consistent approach to the management of public works projects.
The Capital Works Management Framework was introduced on a phased basis from 2007 and became mandatory for all contracting authorities in 2010. The documents are updated and augmented where appropriate to respond to new developments in the industry and changes in the regulatory environment.
The assessment of a tenderer’s financial and economic standing is a key part of any procurement process because the contracting authority needs to be reasonably assured that a contractor will have the necessary capacity to carry out a contract if the contractor is awarded the contract. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. My Department has developed specific national guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects, published as part of the Capital Works Management Framework. In this regard, it is important to point out that there are no centrally imposed requirements for a minimum turnover. Such requirements would logically be developed on a case by case basis with reference to the specific needs of the contract.
The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines (Circular 10/10) to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. In relation to suitability criteria, the guidelines stress that public bodies must ensure that any criteria/turnover levels set by them must be both justifiable and proportionate to the needs of the contract.
