Dáil Éireann Debate, Thursday - 17 June 2021
259. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if reform in the context of public procurement can be used as a means of producing better value for money in respect of State projects; and if he will make a statement on the matter. [32773/21]
Amharc ar fhreagraSustained reform of public works procurement has been ongoing since 2004 when the construction procurement reform initiative commenced. The publication of the Capital Works Management Framework (CWMF) in 2007 marked a new departure in the procurement of public works projects. All public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the CWMF, which is mandated by circular. The CWMF provides an integrated set of contractual provisions, guidance material, technical templates and procedures that cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements. The use of the framework results in a more cost effective delivery of public works projects because of the systematic and detailed approach to, amongst other things, planning (both preparatory and detailed), and capital budgeting as well as design and construction cost control. The process required under the CWMF reflects the balance that must be struck in awarding a public contract between value for money and a quality project outcome. All the documents that make up the framework are available online at: constructionprocurement.gov.ie.
A 2014 review of a key element of the CWMF, the public works contracts highlighted a number of areas that were contributing to poor project outcomes including cost increases. Poor definition of the project requirements was identified as one of the main sources of claims under the contracts, claims that were often upheld in the dispute resolution procedures under the contract. A range of interim measures were introduced in 2016 in response to the recommendations set out at the culmination of the review.
A broader review of the policies and practices deployed in the procurement of public works projects commenced in March 2019. The focus of the review is on improving the delivery of construction projects in terms of quality, timely delivery and cost outcomes.
The review will deliver significant changes to the CWMF over the coming years. The review process involves extensive engagement, both with industry stakeholders, and with the public bodies charged with the delivery of public works projects on a broad range of issues such as:
- price variation;
- risk management;
- creating a better quality: price balance in the award of contracts;
- adoption of BIM on public works projects;
- liability, indemnity and insurance requirements;
- performance evaluation;
- encouraging collaborative working.
A high-level strategy has been developed with the Government Construction Contracts Committee (GCCC) that will guide the implementation that will be addressed primarily through the progressive refinement and enhancement of the CWMF.
The onset of Covid-19 has impacted on the conduct of the review as resources were deployed to address the disruption to projects arising out of the necessary public health measures since March 2020. Nonetheless progress continued on a range of issues which will be actioned throughout 2021 and 2022.
