Dáil Éireann Debate, Thursday - 2 May 2024
147. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if any changes in respect of procurement are contemplated with a view to speeding up various infrastructural proposals; and if he will make a statement on the matter. [20138/24]
View answerMaximising delivery of NDP projects is a key priority for Government. In 2023, I announced a package of actions to enhance delivery of vital public projects. These actions included significant changes to reduce the administrative burden in delivering major capital projects. The Public Spending Code has been replaced by a set of Infrastructure Guidelines which reduce the number of decision gates whilst maintaining robust oversight of expenditure by approving authorities.
As Minister, I have taken a direct role in overseeing delivery of the NDP through chairing the Project Ireland 2040 Delivery Board. I am determined that collectively we can address bottlenecks that exist in order to progress the NDP. In addition, the Construction Sector Group (CSG) continues its work to increase productivity and efficiency through innovation and digital adoption initiatives across the construction sector. The work of the CSG Sub-Group is progressing positively on issues including Modern Methods of Construction (MMC), Building Information Modelling (BIM), and ePlanning.
In September 2023 my department published the Prospects 2023/2024 report. The report sets out a clear pipeline of 50 of the largest individual projects that make up Project Ireland 2040. This pipeline spans projects which are currently at planning and appraisal to projects which are completing construction in 2024. This report aims to provide further visibility on the sequencing of Ireland’s priority infrastructure projects over the coming years, thereby enabling firms to plan, in advance, commercial bids for these major infrastructure projects.
In addition, I have also introduced further significant reforms to the Capital Works Management Framework (CWMF), which sets out the contracts used for public capital projects.
Project Ireland 2040
In January 2024, I chaired a Project Ireland 2040 Delivery Board meeting where a range of issues were discussed, including the backlog in planning applications and the restructuring of An Bord Pleanála to An Coimisiún Pleanála. The Government is prioritising the Planning and Development Bill through the Oireachtas in 2024. The legislation introduces significant reforms in the judicial review processes, including the establishment of Urban Development Zones, which will empower local authorities to strategically advance development projects.
Modern Methods of Construction
The CSG, which is chaired by the Secretary General of my department, ensures regular and open dialogue between government and industry. The CSG and its associated innovation and digital adoption sub-group are driving seven actions, which are making substantial progress. These include:
Construct Innovate, Ireland’s construction technology centre has been established with the assistance of Enterprise Ireland with the aim of making Ireland a global research and innovation leader in sustainable construction and built environment technology.
The Build Digital Project, which is grant aided by my department aims to foster and support digital adoption across the Irish construction sector.
There has also been significant progress embracing modern methods of construction (MMC) in the construction sector with the Roadmap for MMC Adoption in Public Housing being published in July 2023. A significant step in this roadmap is the roll out of the Accelerated Social Housing Delivery Programme, which targets delivery of 1,500 social homes, leveraging MMC approaches by the end of 2024.
In addition, the MMC Demonstration Park in Mount Lucas, County Offaly will be a crucial resource for developers and construction professionals involved in the delivery of high-quality, affordable homes. A planning application has been submitted and phase one of the project is on target for completion by Q3 2024. An action plan for MMC skills will follow the publication of an Ernst and Young report this year.
Eplanning
Another ongoing innovation is the digitisation of the planning application process across our 31 local authorities. The Local Government Management Agency (LGMA), under the governance of the CSG Sub-Group has rolled out an e-planning system in twenty-four LAs. The rollout to the remaining LAs will occur by Q2 2024. The project aims to improve efficiency and reduce the potential for invalid applications, therefore speeding up the planning process for all.
Capital Works Management Framework
The CWMF represents the tools that a public body must use to procure and manage the external resources necessary to deliver a public works project that is to be delivered under the Exchequer-funded element of the National Development Plan. It consists of a suite of best practice guidance, standard contracts, generic template documents and procedures that cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements.
A review of the policies and practices deployed in the procurement of public works projects commenced in March 2019 and is ongoing. The focus of the review is on improving the delivery of construction projects in terms of quality, timely delivery and cost outcomes. The review will deliver significant changes to the CWMF over the coming years. The review process involves extensive engagement, both with industry stakeholders, and with the public bodies charged with the delivery of public works projects on a broad range of issues such as:
• price variation;
• risk management;
• creating a better quality: price balance in the award of contracts;
• adoption of BIM on public works projects;
• liability, indemnity and insurance requirements;
• performance evaluation;
• encouraging collaborative working.
A high-level strategy has been developed by the Office of Government Procurement (OGP) with the Government Contracts Committee for Construction (GCCC) that will guide the implementation and will be addressed primarily through the progressive refinement and enhancement of the CWMF.
Significant reforms have already been incorporated into the conditions of contract which rebalance the level of risk that consultants and contractors are expected to bear and significant efficiencies have also been introduced to the procurement process. These measures are aimed at increasing the level of participation in public tenders.
Further reforms are under development including the adoption of digital solutions to elements of the tendering process to reduce the administrative burden associated with procurement processes.
It is worth noting that the tender process operates most efficiently where the contracting authority has taken the time to prepare tender documents that clearly set out the project’s requirements, key risks and deliverables along with award criteria that are considered, succinct and comprehensible. This enables tenderers to respond within the time frame and the evaluation team to determine the award of the contract in a timely fashion.
Building Information Modelling
BIM has the potential to transform the processes surrounding project and data management on construction projects and can drive significant efficiencies. BIM can speed up the construction process, reduce waste, cut costs, and deliver projects to a higher quality.
Acknowledging the transformative role it can play, in January 2024, I introduced BIM requirements into the CWMF. This requirement now applies to public work projects with a capital value of over €100 million. Over the next four years, these requirements will be extended to cover all public works projects.
The Build Digital project aims to ensure that world-class digital practices, which already exist in certain elements of the Irish construction and built environment sector, are adopted throughout the industry, and supply chain. They have published templates, guides, and other digital tools required by the sector.
As part of my reforms to the CWMF we are also adopting the International Cost Management Standard, to enable consistent reporting of costs, life cycle costs and life cycle analysis including embodied carbon across the National Development Plan.
