Circulars

Construction Procurement Reform Circulars

Circular 07/13 – Reduction of the Current Level of Construction Performance Bonds for use with the Public Works Contracts
Circular 07/13: The Department of Public Expenditure and Reform has issued on 1st May 2013 a circular reducing the level of construction performance bonds required on public works contracts. The construction sector has seen extremely high levels of insolvency in recent years which is reflected in the appetite of specialist insurance providers to provide cover at the levels previously sought. The tightening in the market is leading to tendering delays where it is proving increasingly difficult to award contracts should the performance bond level required in the tender exceed 12.5%.

The circular sets out new levels for performance bonds for projects and will take immediate effect.

In the context of the public capital programme this is the first of a number of steps that are being taken to reduce the risk posed by insolvency of a main contractor on a public works contract. In the event of insolvency there is a financial loss sustained both in the additional costs involved in retendering but also due to the delay in providing the project in question. Details of these further steps will be communicated shortly.

Circular 10/10 – Facilitating SME Participation in Public Procurement
Circular 10/10: The Department of Finance Circular 10/10, issued on 13 August 2010, sets out positive measures that contracting authorities are required to take to promote SME involvement in a manner that is consistent with the principles and rules of the existing public procurement regulatory regime.
Circular 07/10 – Construction Contracts and Conditions of Engagement Approval
Circular 07/10: The Department of Finance Circular 7/10, issued on 3 June 2010, should be read in conjunction with the Department’s Circulars 40/02, 33/06, 04/08 & 06/10. Circular 7/10 deals with the approval of construction contracts and conditions of engagement for publicly funded projects which are not one of the standard forms included in the Capital Works Management Framework.
Circular 06/10 – The New Capital Works Management Framework
Circular 06/10: The Department of Finance Circular 06/10, issued on 5 May 2010, in relation to the CWMF should be read in conjunction with the Department’s Circulars 33/06 & 04/08. Circular 06/10 relates to the introduction of further Government Reform Measures in connection with Public Sector Construction Procurement.
Circular 04/08 – Construction Procurement Reform
Circular 04/08: Additional measures to the revised of Arrangements for the procurement of public works projects and for the engagement and payment of construction consultants.
Circular 33/06 – Construction Procurement Reform
Circular 33/06: Revision of Arrangements for the procurement of public works projects and for the engagement and payment of construction consultants.
Circular 40/02 – Construction Procurement Reform
Circular 40/02: Sets out revised reporting procedures in relation to Public Sector contracts and the role of the GCC which is separated into 2 distinct entities, 1) dealing with construction procurement and 2) dealing with non-construction supplies and services procurement.