Dáil Éireann Debate, Tuesday - 27 June 2023
48. Deputy Alan Kelly asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the reason modular home suppliers contracted to an organisation (details supplied) to build modular homes for refugees are expected to pay upfront for the costs of their construction; and how this is feasible or efficient to timely delivery. [24840/23]
Amharc ar fhreagraIn 2022, the OPW was asked by Government to develop a pilot programme of an initial 500 rapid build homes on behalf of the Department of Children, Equality, Disability, Integration and Youth (DCEDIY). That number was subsequently increased to 700 late last year.
The Department of Housing, Local Government and Heritage (DHLGH) was asked to assist in identifying sites that might be suitable by seeking information from public authorities on potential sites in their ownership.
The OPW had already begun liaising with the Construction Industry Federation (CIF) relating to the possible use of modular housing units to provide durable accommodation solutions. Those discussions considered the potential capacity of the modular manufacturing industry in Ireland to produce a product at scale and to the appropriate standard.
In conjunction with the CIF and the modular manufacturing industry, the OPW developed an exemplar design and specification to ensure Building Regulation compliance. The modular prototype that was designed is a highly energy efficient durable single storey unit (with a useful life of 60 years). The units would be fully fitted out and transported onto sites around the country.
Following this process, the OPW undertook an accelerated procurement procedure to select a main contractor to carry out site enabling works and arrange for the manufacture, transportation and installation of modular units.
The rollout of the Rapid Build Homes programme is classified as a ‘matter of extreme urgency’ under the EU Directive governing procurement regulations. My Office decided to procure the Main Contract using a competitive procedure, one designed to meet the urgent requirements of this project. This procedure involved inviting main contractors, to submit a combined qualification and tender submission. The OPW used the contract form of NEC4, Option E, with some amendments as a model for the contract with the Main Contractor. NEC4 is a cost reimbursable contract in which the contractor is reimbursed the actual costs incurred in carrying out the works, plus an additional fee (management and overheads).
A contract with John Sisk & Son Ltd was awarded in August 2022. John Sisk & Son Ltd then engaged in a separate process with a range of modular manufacturers and established a framework of 5 suppliers for this programme.
Since contract commencement, my Office has been engaging regularly with John Sisk & Son Ltd to ensure the effective management of the Ukraine Rapid Build Programme. As the procurement of the modular manufacturers was undertaken by the main contractor, my Office has no direct contractual arrangements with any of the suppliers or manufacturers involved. I understand that, in addition to the contractual agreement John Sisk & Son Ltd has with the modular suppliers, payments are being made in an extremely prompt basis with no undue delay.
