Dáil Éireann Debate, Tuesday - 24 April 2018
194. Deputy Sean Fleming asked the Minister for Education and Skills if all works in respect of a project (details supplied) are at a final stage; if retention money is being held; if the persons who carried out the works on this project will be paid in full; and if he will make a statement on the matter. [17522/18]
View answerThe school referred to by the Deputy forms part of Schools Bundle 5, the PPP project which has been impacted by the liquidation of Carillion Construction Ltd and Carillion AMBS Ltd. Carillion Construction Ltd had subcontracted the construction work to Sammon Contracting Ireland Ltd which, in turn, had entered into other sub-contracts.
At the time of the liquidations in January, the school under reference was approximately 80-85% complete.
As a consequence of the liquidations, the construction and facilities management contracts relating to the PPP Project were terminated and are now being retendered. The tender process in this respect is being undertaken by infrastructure fund manager DIF on behalf of the PPP Company, InspiredSpaces. The focus of all parties is on ensuring that the school buildings, including the school referred to by the Deputy, are delivered as quickly as possible.
In accordance with the terms of the PPP contract, payments to Sammon Contracting Ireland Ltd for the construction of the schools were made by InspiredSpaces through Carillion Construction Ltd. At the end of December 2017, the National Development Finance Agency (NDFA) received confirmation from InspiredSpaces that Sammon Contracting Ireland Ltd had been paid in full in accordance with the contract to that point and that there were no issues arising.
Payments by the Department of Education and Skills to InspiredSpaces for the construction, operation and maintenance of all schools forming part of the Schools Bundle 5 project will be made through annual inflation-linked payments called unitary charges, the first of which will be made following the completion of the first school building. Additionally, the contract provides for the payment of a lump sum for the completion of the off-site works and related costs to allow for the delivery of these schools. A sum of €4.4 million, with relevant retention applied, has been paid to InspiredSpaces in that respect.
In the case of all school building projects, it is a matter for sub-contractors and suppliers to agree terms and conditions and a schedule of payments with the main contractor as their direct employer or customer.
Contractual/payment issues arising under such sub-contracts are for the relevant contracting parties to resolve. The Department of Education and Skills is not party to these contracts and does not have any authority to intervene in respect of the matter.
Sammon Construction Ireland Ltd is now subject to the direction of a Court appointed examiner.
