Vol. 449 No. 5
79 Mr. Davern asked the Minister for the Environment if he will reconsider the practice of taking the lowest estimate for works carried out by County Councils in view of the fact that so many contractors have gone into liquidation as a result of tendering too low and the subsequent hardship on employees and in particular delays caused to applicants for housing. [4114/95]
Local authorities are not obliged to accept the lowest or any tender for public sector construction works. In examining tenders for a project, local authorities consider the lowest tender and are expected to satisfy themselves that the contractor concerned has the capacity to undertake the project, that the work can be done for overall price quoted and that the details set out in the Bill of Quantities or other relevant information are realistic.
In regard to housing construction schemes, a local authority may accept a tender without seeking the approval of the Minister where all of the following conditions apply:
(a) the lowest valid tender is being accepted;
(b) any conditions specified in the approval of the budget cost have been complied with;
(c) the tender is not more than 10 per cent greater than the tender element of the approved budget cost; and
(d) there has been no significant alteration in the content or scope of the work for which the budget cost was approved.
Where any of the above conditions are not met, the approval of the Minister must be obtained before a tender is accepted.
