To ask the Minister for Transport the action he is taking to reduce the out turn cost of road projects; and if he will make a statement on the matter
Damien English. (Nominated by: Denis Naughten)
For ORAL answer on Wednesday, 7th July, 2004
Ref No: 20284/04
To ask the Minister for Transport the action he is taking to reduce the out turn cost of road projects under the NDP; and if he will make a statement on the matter
Simon Coveney. (Nominated by: Denis Naughten).
For ORAL answer on Wednesday, 7th July, 2004.
Ref No: 20285/04
Answered by the Minister for Transport
(Séamus Brennan, T.D.)
The planning, design and implementation of national road improvement projects, including the outturn costs of individual road projects, is a matter for the National Roads Authority (NRA) and the local authorities concerned.
I am informed by the NRA that since the 1999/2000 period it has strengthened its cost estimation, control and procurement procedures so as to have more accurate cost estimates from the earliest stages of a project and to ensure greater certainty of outturn costs between tender stage and completion date.
Measures taken include greater use of Design and Build (D&B) Lump Sum fixed price contracts offering cost efficiencies, greater certainty of outturn costs and reduced scope for claims;
- standardisation of economic designs for high cost items such as bridges and other structures;
- securing greater involvement by foreign contractors;
buyout of Price Variation Clause and Risk (Traditional Procurement) - where this gives good value; and further attention to improving quality of site investigations and acceptance of such investigations by contractors as agreed basis for pricing.
These measures are bearing fruit in more accurate initial estimates and less divergence between final outturn costs and costs at tender stage