Public Procurement Contracts
Dail Éireann — 2026-04-16
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Jack Chambers (FF), Dublin West

I might conclude what I was about to say. I appreciate the points the Deputy has raised. The standard form of public works contract requires the contracting authority to set a financial cap on liability. That depends on the complexity of the project. There are also number of other requirements that are designed to mitigate the risk of non-performance, including holding back a specified percentage of each interim payment - half the total retention sum held is released upon completion with half retained over the defects liability period. It is only released if all the recorded defects are addressed or it may be paid to a different contractor where the original one fails to address the defects.
On most public works contracts, there is also a requirement for a performance bond, normally 10% of the contract sum. This is also reduced in half upon completion with the remaining portion held in place for 15 months post completion.
We have a government contracts committee for construction, ensuring we develop the model with construction and manufacturing expertise so that there is a collaborative approach at the design phase in terms of the projects which are advanced. This issue has been related to me and particular sectors have raised it. It is about striking a balance and ensuring that there is respective liability. We also need to ensure we do not crowd out competition in the wider sector.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-04-16/debate/main
Retrieved: 2026-08-14T04:54:49+00:00
Sitting date: 2026-04-16