Change to minimum permitted tendered percentage addition to costs of labour

9 January 2025

OGP have published changes to the Forms of Tender and Schedule.

Schedule Part 2 D – Adjustments to the Contract Sum including Delay Costs (Sub-clause 10.6 and 10.7) – of the Form of Tender and Schedule provides the opportunity for the contractor to tender a percentage addition for labour costs as defined by the applicable sectoral employment order made under the Industrial Relations Acts 1946-2015.

The minimum permitted percentage addition has been increased from 0% to 35% to reflect the statutory obligation of employers as imposed by the applicable sectoral employment order.

The revised minimum percentage addition has been increased to take account of employers’ statutory obligations in relation to PRSI, holiday pay, pension contribution, sick pay, and death in service.

The calculation of this percentage addition relates to the current sectoral employment order rates of pay including all increases (From 5 August 2024 to 31 July 2025, from 1 August 2025 to 31 July 2026, and from 1 August 2026).