A building project is a complex arrangement of contractual relationships between the client, the main contractor, specialist sub-contractors, domestic sub-contractors, suppliers of materials, suppliers of plant etc.
In general all sub-contractors employed on education sector building projects are employed directly by the Main Contractor or indirectly by the Main Contractor through other sub-contractors. It is a matter for all sub-contractors to agree terms and conditions and a schedule of payments with the Main Contractor as their direct employer. Neither the client, in this case the Board of Management of the school, nor my Department is a party to those contractual arrangements.
The Board of Management of Mercy Convent School, with the support and advice of my Department, has been through the formal dispute resolution process under the Public Works Contract resulting in the termination of the obligation of the Main Contractor to complete the construction of the new school building.
The specific issue of payments to subcontractors raised by the Deputy are contractual matters between those sub-contractors and the main contractor.
The Construction Contracts Act 2013 provides statutory arrangements for payments under construction contracts. The 2013 Act provides certain protections for companies and individuals, including sub-contractors, engaged in construction related activities who enter into construction contracts covered by the Act.
The amount paid in site security to date is €296,176. This and other costs associated with the completion of the school will be set against the Bond when project is completed.
