Committee of Public Accounts (PAC) launches report on Office of Public Works

PAC also found that the ongoing OPW development of a new Garda complex in Dublin is based on 2016 staff numbers and that the failure to review the scheme in 2018 represents poor management and has resulted in a project that is not fit for purpose. The Committee also raised concerns about the management of Flood Relief Projects and a maintenance contract that cost more than three times more than the estimate.

In its report published today on the Examination of the 2019 Appropriation Account for Vote 13 – Office of Public Works and Related Financial Matters, the Committee makes recommendations on five issues which were discussed with the Comptroller and Auditor General and the OPW at a meeting of PAC on 11 November 2020. These are:

·         Ongoing issues with the Miesian Plaza lease;

·         Delays on Flood Relief Projects;

·         Issues identified with a maintenance contract;

·         The development of a Garda complex at Military Road, Dublin 8; and

·         Vacant Garda properties.

Deputy Brian Stanley, Chairman of PAC, said: “What was consistent throughout the Committee’s consideration of the matters detailed above were significant delays in the implementation of capital works, regular overspends and an apparent lack of proactive project management. The Committee remains concerned that the OPW has not been proactive in developing important capital projects and that its management of on-going projects has routinely resulted in overspending.”

In the case of the Miesian Plaza building in Dublin 2, which now houses the Department of Health, the Committee found that the OPW’s mismeasurement of the floor space for the building is expected to result in an over-payment of €10 million during the lifetime of the 25-year lease, which was entered into in 2017.

Deputy Stanley said: “While the OPW has entered into negotiations with the owner of the building in an attempt to resolve the issue without resorting to legal action, the Committee remains concerned that the OPW will not succeed in preventing taxpayers footing the bill for an additional €10 million that is a direct result of a fundamental error by OPW.”

PAC recommends that the OPW takes all necessary steps to prevent the forecasted loss of approximately €10 million and that the OPW ensures it has appropriately qualified staff to manage its property transactions on behalf of the State.

When examining the delays in Flood Relief Projects, the Committee raised concerns that the total amount allocated for flood relief schemes had not been spent and referenced a number of schemes where significant delays were evident, including several that were initiated in 2015 but where physical work had yet to begin on the projects. The Committee also raised issues around the cost benefit project analysis of the current approach to flood management taken by the OPW.

Deputy Stanley said: “Members expressed frustration at the lack of up-to-date information on costs, scheduling and project progression on individual projects, which should be available on OPW’s website. The Committee believes that this would provide more transparency, accessibility and accountability to communities in respect of the State’s significant investment programme in this area.”

The Committee recommends keeping communities informed on the progress of projects in their areas; that the OPW assess where project planning may be expedited and some aspects of the processes run in parallel to reduce delays; that where there has been a significant delay in the physical commencement of a flood relief scheme that the project is reassessed; and that updates on schemes are published on the OPW website.

PAC also looked into an issue around a specific maintenance contract which had been examined by the Comptroller and Auditor General in 2018. The contract was estimated to cost approximately €3m per annum, or €12m over a four-year period. However, the actual total cost of the contract over four years was €39.4m, over three times more than the estimate. The C&AG also identified six instances where construction works carried out as part of the contract breached a €500,000 limit that should have required a new tender. When the contract was renewed with the same company for three years, the estimated annual cost was €5m but the first year alone saw an overspend of nearly €8m.

Deputy Stanley said: “Previous failures to prevent such breaches represents poor contract management. The Committee recommends that that the OPW reviews its tender specifications for maintenance contracts to ensure that its forecasted expenditure is more accurate to prevent the State from being exposed to unexpected costs, and to ensure that all works carried out under its maintenance contracts do not breach the financial limits specified in those contracts.”

The new Garda complex at Military Road in Kilmainham, Dublin 8, which will replace current Garda accommodation on Harcourt Square that is leased from a commercial landlord, is due to be completed in quarter three 2022 and is estimated to cost €86.6m, an increase of €6.6m on the original estimate. The Committee raised concerns with the OPW around delays to the construction work due to the COVID-19 public health restrictions and whether the new complex can adequately accommodate the number of Garda personnel currently in Harcourt Square, given that the plans were drawn up in 2016.

Deputy Stanley said: “The Committee requested information from the OPW regarding the selection process for the Military Road site and whether potential future increases in Garda personnel informed the decision, as the Garda Commissioner stated in 2019 that the development at Military Road would not be sufficient to accommodate all units currently based in Harcourt Square.

“The OPW informed the Committee that, in 2016 there was 850 to 890 Garda personnel based in Harcourt Square and that the Military Road complex will be sufficient to accommodate the same number of staff upon completion.

Deputy Stanley added: “The Committee is of the opinion that developing a premises based on 2016 staff numbers and operational needs does not represent best practice. This is compounded by the fact that as early as 2018 the OPW and An Garda Síochána were aware that Garda numbers had increased and that the organisation had undergone organisational change. The failure to review the Military Road development in 2018 based on these factors represents poor management and has resulted in a major capital project no longer being fit for purpose.”

The PAC is a standing committee of Dáil Éireann which focuses on ensuring public services are run efficiently and achieve value for money.

The PAC Report Examination of the 2019 Appropriation Account for Vote 13 – Office of Public Works and Related Financial Matters is available on the Oireachtas website.