Public works contracts must be awarded on the basis of objective and non-discriminatory criteria. Different criteria are applied at the pre-qualification stage to those at the award stage with pre-qualification criteria designed to assess the capacity of applicants and tenderers to deliver the project in question. Their capacity is typically assessed by criteria set out under the EU procurement directives and public works tenders usually include criteria such as economic and financial standing and technical ability, amongst others.
All policy, guidance and implementation measures relating to capital projects is published on the Construction Procurement Reform website www.constructionprocurement.gov.ie where the Capital Works Management Framework (CWMF) provides a suite of best practice guidance, standard contracts and generic template documents. Tendering is dealt with through a range of guidance notes and template documents such as Suitability Assessment Questionnaires, Instructions to Tenderers and Forms of Tender which are published under the CWMF. These documents may be downloaded and modified to suit each particular tender competition, and provides a consistent approach for contracting authorities to the management of public works projects.
The CWMF was introduced on a phased basis from 2007 and became mandatory for all contracting authorities through the issue of Department of Finance Circular 06/10 on 5 May 2010. The documents are updated and augmented where appropriate to respond to new developments in the industry and changes in the regulatory environment.
The Deputy will appreciate that the assessment of a tenderer's capacity is a key part of any procurement process because the contracting authority must be reasonably satisfied that the contractor awarded a public works contract has the necessary capacity to carry out and successfully deliver the project in question. Establishing suitability criteria that are appropriate to a particular contract is a matter for the contracting authority concerned since they are in the best position to understand the delivery requirements for that specific contract. Once appropriate suitability criteria are established it is important to apply proportionate minimum standards to these criteria. In this regard my Department has developed specific national guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects, published as part of the Capital Works Management Framework (Guidance Note 2.3.1.3 Suitability Criteria for Works Contractors Minimum Standards refers. http://constructionprocurement.gov.ie/wp-content/uploads/GN_2.3.1.3.doc).
The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines (Circular 10/10) to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. In relation to suitability criteria, the guidelines stress that public bodies must ensure that any criteria/turnover levels set by them must be both justifiable and proportionate to the needs of the contract.
