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Schools Building Contractors

Dáil Éireann Debate, Wednesday - 4 July 2018

Wednesday, 4 July 2018

Questions (123)

Jonathan O'Brien

Question:

123. Deputy Jonathan O'Brien asked the Minister for Education and Skills the status of subcontracting companies that have incurred losses as a result of the liquidation of a company (details supplied); and if plans are in place to utilise these companies in the retendering of the schools bundle 5 PPP contract. [29113/18]

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Written answers

The Schools Bundle 5 Public Private Partnership (PPP) programme comprises five school buildings and one further education college across four sites in Bray, Wexford, Carlow and Kells. This programme has been affected by the liquidation referred to by the Deputy.  

Like other major construction projects, school building projects involve a complex arrangement of contractual relationships between the client, the main contractor and various sub-contractors and suppliers.  In general, all sub-contractors and suppliers engaged on education sector building projects are employed directly by the main contractor, or indirectly by the main contractor through other sub-contractors.

It is recognised that the liquidation in question came as a particular blow to its employees and sub-contractors.  However, the Department is not party to these contractual arrangements and does not have any role or authority in relation to payment or other contractual issues arising.  

However, the Deputy will be aware that last week I welcomed an announcement from DIF and the project lenders, on behalf of the PPP operator, Inspiredspaces. This announcement was in respect of arrangements that are being put in place for the appointment of a replacement contractor, Woodvale, to facilitate the completion of the three most advanced schools by the end of August and to undertake survey and preliminary work at the other three buildings in the programme. This preparatory work is intended to facilitate the remaining construction work being completed by the end of December. In this respect, and while it will be a matter for Woodvale to determine its supply chain and the sub-contractors who will form part of that chain, it is likely that Woodvale will make enquiries of the existing supply chain in its assessment.

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