Dáil Éireann Debate, Tuesday - 8 March 2022
331. Deputy Sean Sherlock asked the Minister for Education the number of school building project tenders that have changed in costings due to cost of material changes; and the average percentage change of those projects. [12582/22]
View answerUnder the Capital Works Management Framework (CWMF) once a tenderer submits a tender it is not allowed to be adjusted for inflation. However in line with CWMF procurement rules and recent new guidance and changes to Public Work Contracts (PWC), issued by the OGP, the following scenarios are being implemented by the Department of Education:
1. Where tenders are submitted and the apparently most advantageous tender (typically the lowest) is identified and subsequently withdraws, the next lowest tender is asked if they will stand over their price and accept the contract. If this tenderer withdraws, this process is continued until a tenderer will stand over their price. A test of value for money is made if this process results in a uneconomical tender. This may result in the tender being collapsed and a new tender process initiated.
2. As of the 24th of November 2021 the Office of Government Procurement (OGP) issued new guidance constructionprocurement.gov.ie/wp-content/uploads/24-November-2021-Material-price-inflation-guidance-on-public-works-tenders.pdf where in the event that tenderers fail to stand over their tenders, tenderers are invited to resubmit their tenders to take account of material price increases that have arisen since the Designated Date of the original tender.
3. As of the 9th of January 2022 the OGP issued revised PWC, supporting tender documents and guidance constructionprocurement.gov.ie/category/news/ that incorporate provisions to deal with material price inflation:
As this is an ongoing issue the full extent will not be apparent until impacted projects are concluded and the terms of the Public Works Contracts, including the dispute resolution clauses (e.g. Conciliations), are fully settled.
