Sean Canney Independent TD has welcomed the approval by the Cabinet today of a Memo presented by Minister Michael McGrath to address the crisis in the Public Works Contracts due to the unprecedented increase in the cost of materials and fuel for construction plant.
The changes to the Public Works Contracts will allow Building and Civil Engineering Contractors who have contracts ongoing or who tendered for projects to seek recovery of 70% of increases in prices incurred since January 2022.
“I have continuously highlighted this issue and I welcome this decision; I further acknowledge the work of the Construction Industry Federation in working with the Minister to achieve this sensible arrangement”.
“I now await the fine detail of this decision which will be finalised by the Office of Public Procurement and a directive will be issued to all public work contracting authorities in the coming days”.
“The Public Works Contracts have proven to be very imbalanced and unfair in these unprecedented times and this decision today will help the industry to tender into the future with confidence for public works”