Today (11-Dec-2014) Minister of State, Simon Harris T.D. announced the outcome of the first stage of the review of the Public Works Contracts.  This review was undertaken by the Government Contracts Committee for Construction, and a report of the Review was today published by the Office of Government Procurement.

This report sets out recommendations for interim amendments to the contracts and a framework for a Medium-term strategy to inform engagement between industry stakeholders.  Welcoming the Report Minister Harris stated that,

Public Works contracts, worth in excess of €2.4 billion annually, are a significant stimulus to our domestic economy.  Implementing these recommendations is a priority for Government given the aim to enhance the delivery of the Exchequer Capital Programme.  Certainty and clarity are paramount to deliver value for money for the taxpayer.  Implementation will commence following engagement with industry on both the interim recommendations and the Medium-term strategy.

The interim recommendations aim to rebalance risk currently transferred to contractors under the contracts in recognition of the different economic environment to the one into which the contracts were introduced in 2007 and in particular the very different challenges facing both Government and the industry in delivering construction projects.  Minister Harris noted,

Recent data has seen a strong recovery in a sector that bore the brunt of the fallout of the financial crisis. Last month’s CSO data saw 7,000 new jobs created in the Construction Sector in the last 12 months, while the latest Purchasing Managers’ Index reflect confidence returning to a sector that is expected to continue to expand into next year.

The recommendations will be implemented by mid-2015.  Broader engagement on the procurement of public projects with industry stakeholders will take place throughout 2015.  They will be invited to contribute to a medium-term strategy encompassing procurement and recent developments in the fields of technology and legislation governing the construction industry.  Recommendations will be brought to Government before year end.

Minister of State with responsibility for the Construction 2020 Strategy, Paudie Coffey T.D. welcomed the report noting, “These recommendations are important in setting clear rules for engagement with the industry. Recent positive indicators demonstrate the need to focus our efforts to ensure the sustainability of a sector of strategic importance to the social, economic and physical fabric of the State.”

Report on the review of the Public Works Contracts available at, Publication of the Report on the Performance Review of Public Contract Works

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Media Contact: Richard Troy, 087-0641625