2026-04-16

6. Deputy Grace Boland asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the reforms planned or under consideration to improve value for money, risk allocation and cost control in public procurement for State-funded projects; whether changes to tender evaluation criteria, including the weighting applied to price versus quality and delivery capacity, are being examined; and if he will make a statement on the matter. [27862/26]

Public procurement is one of the State's most powerful levers for delivering quality infrastructure and services, yet it is also where we see repeated cost overruns, delays and failed delivery. Good procurement is not about spending more money; it is about spending it wisely. We have to have robust processes in place. The Minister might update us as to what reforms are planned or under consideration to strengthen value-for-money considerations, risk allocation and cost control in the State.

Reform of procurement is specifically called out under action 25 of Accelerating Infrastructure: Report and Action Plan. There are also a number of actions focused on improving the visibility of the pipeline and providing greater certainty around the timing of the delivery stage of critical infrastructure. Government policy with regard to public works procurement continues to require comprehensive definition of the brief and detailed description of the scope as this represents the most efficient means of delivery. There has been a significant move to rebalance the level of risk that consultants and contractors are expected to bear when engaged on public works projects. Liability caps and index-based price adjustment mechanisms have been introduced in the consultancy and construction contracts. Further reforms that are highlighted in the action plan include formalising dispute avoidance and early warning provisions; the development of an early engagement model to enable collaboration at the earliest point to drive efficiencies; the introduction of lean principles; and further adoption and promotion of digital technologies. There is also a focus on training and supports for contracting authorities engaged in works delivery through the commercial skills programme. Through the construction sector group, there is ongoing engagement between the Government and industry on building the capacity of the sector itself through a range of supports and productivity measures.

I very much welcome the references to frameworks, guidance and training. That is all very important. We repeatedly see at the public accounts committee systemic failures in procurement processes. I have worked in this space. I am a lawyer. I have advised in this space. Unless we have people who understand the business case and who put in place appropriate milestones, and unless we have appropriate legal protections in place to mitigate the risks and make sure that delivery is pegged to payment, we are setting ourselves up for failure. We see it time and time again. We have a SUSI grant project with €6.4 million paid that is at pre-project phase. The national train control centre will see a €40 million overrun and more. We have to have the confidence and capability, and the Department has to assess budget versus delivery. We need to make sure with the projects for which we are awarding contracts that we award them on the basis that they have the competence to deliver them on time and on budget. I very much hope the Department will request that all Departments and agencies will provide annual reports on budget versus outturn.

There are ongoing reforms, as the Deputy knows, on the capital works management framework. It is an integrated set of contractual provisions, guidance material and technical procedure. It covers all aspects of the delivery process of a public works project, from inception to final project delivery or review. The structure of this strategic framework is closely aligned with and complements the infrastructure guidelines developed by the Department of public expenditure and reform. A key theme of the review of the capital works management framework, CWMF, is the development of high-quality information to enable better informed decisions, reducing risk on construction projects. We need to secure value for money. It is an ongoing priority for the Government. It is at the heart of all decision-making at every stage of policy or programme life. There is a lot of good work going on. I thank the Deputy for her question.

I appreciate that. The Minister of State is right to say that we absolutely have to have the data to ensure that our procurement process is robust and is delivering value for money. It is essential. We are here representing the taxpayers and we have to make sure that the taxpayers are getting value for money for services, not only capital projects but also IT projects. This is where we are seeing systemic failures right across the board. I hope the Minister of State will be able to provide an update as to what evaluation processes the Department has been undertaking in recent months across all Departments and agencies.

Building information modelling, BIM, provides a structure for information generated in respect of a construction project. There is now a high-level implementation plan for phased adoption of the BIM on public works projects. In three years' time, all public works projects will have BIM requirements incorporated. As of 1 January last, milestone 6 of the Irish BIM mandate for CWMF has been reached. These requirements now include the contractor and supply chain on applicable projects up to €10 million. The Government continues to provide support to the industry to adopt all these areas through the Build Digital Project. There is a lot of good work going on, and we need to continue it.