4 July 2023
Following the announcement by Ministers Donohoe and Smyth of a package of contract reforms to build confidence in NDP delivery, this information note provides further details about the role of BIM and sustainability in these reforms, and a timeline for Public Sector BIM Adoption
Two of the measures announced have the potential to transform the design, construction and operation of public works projects over the coming years.
4 July 2023
On 3 July 2023, the Minister for Public Expenditure, NDP Delivery and Reform and his colleague the Minister of State for Public Procurement and eGovernment announced forthcoming amendments to the suite of Public Works Contracts, including the introduction, for the first time, of Liability Caps, further amendments to the price variation clauses and amendments to the template tender documentation. The amendments will be published in line with the publishing schedule outlined at Appendix 1 of this note, commencing on 17 July 2023.
Update 19/07/23: Tranche 1 and 2 are now published Continue reading
The Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe TD, and Minister of State with responsibility for Public Procurement and eGovernment, Ossian Smyth T.D., have announced significant amendments to the Public Works Contract to provide greater certainty with respect to risk in response to continuing challenges in the construction market.
2 June 2023
The OGP’s Commercial Skills Academy has developed a comprehensive practitioner training programme for public servants involved in the delivery of public capital projects.
This Demand analysis Survey is related to the Commercial Skills Academy’s Tier 1: Practitioner Training, Commercial Skills for Public Capital Works Projects, training course.
This training is aimed at project coordinators, project managers, members of works project teams along with other public servants whose roles are concerned with the planning, procurement or management of traditional employer designed public works projects, including building and civil engineering projects.
The CSA are assessing future demand for this training course and would appreciate if you answered the short survey.
6 April 2023
Update to Central Statistics Office (CSO) Table 3 Detailed Wholesale Price Indices (excluding VAT) for Building and Construction Material
The CSO Table 3 updated on 23 March 2023, notes that the subcategories Precast Concrete and Other Concrete Products (excluding precast concrete) will no longer be maintained from February 2023. The higher-level category Other Concrete Products Including Precast includes products from both these categories and this index can be used as an approximation to obsolete categories.
For more information on categories of products in Table 3, see Description of Products for Buildings and Construction
Further to the announcement on 21 March 2023 of the introduction of liability caps for those engaged in public works contracts by the Minister for Public Expenditure, NDP Delivery and Reform, the Office of Government Procurement (OGP) has today issued amendments to Pillar 2 (Conditions of Engagement) of the Capital Works Management Framework (CWMF). The amendments incorporate Liability Caps into the Standard Conditions of Engagement, Consultancy for technical and archaeology services. The introduction of Liability Caps follows commitments made in Circular 05/2022: Construction Procurement Reform- Revised Guidelines for Professional Indemnity Insurance Levels in Public Works Projects published on 9 February 2022.
The amendments are summarised below.
Details of Amendments
In Pillar 2 (Conditions of Engagement), the Standard Conditions of Engagement for technical consultancy services (COE1) and archaeological services (COE2) have been amended by the incorporation of new sub-clauses (called Limit of Liability) that provide that the Consultant’s liability to the Client arising out of or under the contract is limited, to a monetary amount ascertained in a calendar year (“the Liability Cap”). Amendments have been also been made to the Forms of Tender and Schedule (FTS-9 and FTS-10), to facilitate the introduction of the new sub-clauses in COE1 and COE2. In the Schedule, Part A, the Client must state the monetary amount of the Liability Cap. The Liability Cap does not apply in all circumstances and is subject to exclusions (such as death, personal injury or illness, wilful default or gross negligence), also stated in the Schedule, Part A.
In Pillar 4 (Guidance Notes), a new Guidance Note GN 1.6.4 Liability Caps: Application in the Standard Conditions of Engagement COE1 and COE2 is provided. The note describes the operation of the Liability Cap and outlines a recommended framework (based on an assessment of risk of loss/damages to the Client and considering relevant value for money considerations) to arrive at an appropriate monetary amount to apply to the Liability Cap for the contract concerned. When setting the amount of the Liability Cap, a Client should conduct a considered assessment of the potential risks associated with the contract, combined with consideration of factors that may influence value for money in the tender process.
The guidance will be kept under review and may be amended or supplemented as necessary.
Additional provisions regarding insurances have been incorporated into both forms of the Standard Conditions of Engagement in order to provide the Client with an enhanced level of oversight in relation to the insurances required under the contract.
Other
An additional provision that requires the Consultant to procure that the Collateral Warranties from sub-consultants in a form approved by the Client has been incorporated into the Standard Conditions of Engagement.
Minor clarifications and minor formatting changes have been made to the Forms of Tender and Schedule FTS9 and FTS10.
The new provisions will apply to those tenders received from 10 April 2023 onwards (10 April being the date 10 days after the date of publication of the amendments, disregarding the day of publication). For those tenders, Clients should arrange to issue tenderers with the amended form of the Tender and Schedule, and may consider extending their tender deadline(s) to accommodate the implementation of the amendments.
Subsequent Phases
Liability Caps will also be introduced into Pillar 1 (Public Works Contracts) early in the second quarter of 2023.
The introduction of Liability Caps into the CWMF is an output from the ongoing CWMF Review and is intended to improve the overall risk/reward balance, and to provide greater certainty for parties engaged under the CWMF contracts. It is envisaged that the introduction of Liability Caps will also encourage both competition and participation in the tendering process for public works projects, and lead to improved results for clients, contractors and service providers.
The Office of Government Procurement (OGP) has today published Circular 05/2023 : Initiatives to assist SMEs in Public Procurement. Circular 05/2023 has been developed by the OGP following an extensive consultation process involving both public bodies and SME representatives. The circular is designed to further enable SMEs to compete for public contracts and replaces Department of Public Expenditure and Reform Circular 10/2014.
Circular 05/2023 sets out positive measures for contracting authorities to take to promote SME participation in public procurement. Included amongst the measures are increases to the national advertising thresholds for goods, services and works for advertising contract opportunities on the national tendering portal www.etenders.gov.ie.
To coincide with the issuing of the circular, the OGP has published a dedicated webpage where public bodies can find further information on the circular including an FAQ.
Works Threshold for advertising on eTenders
The threshold at which contracting authorities are required to advertise all contracts for works on eTenders is now €200,000 (exclusive of VAT). Contracts for works with an estimated value less than €200,000 (exclusive of VAT) may still be advertised on eTenders. However, where it is decided not to advertise on eTenders, contracting authorities should seek a minimum of five written tenders from interested and competent contractors.
Works-related Services Threshold for advertising on eTenders
The threshold at which contracting authorities are required to advertise all contracts for works-related services remains at €50,000 (exclusive of VAT). Contracts for works-related services with an estimated value less than €50,000 (exclusive of VAT) may still be advertised on eTenders. Where it is decided not to advertise the contract, contracting authorities should seek a minimum of five written tenders from interested and competent consultants.
The OGP has today published an updated version of GN 1.5.2 Public Works Contracts: Price Variation Clauses, which deals with the contractual entitlements associated with the price variation clauses in the public works contracts forms PW-CF1 – PW-CF5.
The updated guidance reflects the amendments made to these forms of public works contracts on 7 January 2022 and is available here.
Further to the publication of details on 20 May 2022 of the Inflation/Supply Chain Delay Co-operation Framework Agreement for PW-CF1 – PW-CF5, the OGP published on Friday 3 June 2022 the suite of documents associated with the Short Public Works Contract (PW-CF6). These include the Letter of Agreement, guidance and associated workbooks to assist contracting authorities in calculating the Ex Gratia Payment for PW-CF6.
The OGP has also published a series of video tutorials to assist contracting authorities in the use of the template workbooks, a worked example and FAQs.
All of the above are available on a new dedicated page Details of Inflation/ Supply Chain Delay Co-operation Framework, which can be accessed directly from the link in the top banner on our website (https://constructionprocurement.gov.ie).