24/05/2006

Archived item. This item is published here for historical reasons. The information below may be out of date.

PRESS STATEMENT

Recent media reports have referred to the awarding by South Dublin County Council of a major housing construction contract and allegations that European and National Guidelines on the awarding of public contracts have not been adhered to. This statement is being issued to clarify these matters.

The tender for the contract at Fortunestown ‘B’ Phase 2 which was for the construction of 123 dwellings, a Community Facility and associated works was an open tender, which was publicly advertised in both the national press and in the EU Journal.  Following the normal contract award procedures, the contract was awarded to Glenman Corporation Limited who had submitted the lowest of the six tenders received. Glenman Corporation Limited’s capacity to perform the contract and their experience on previous contracts of a similar nature was checked prior to the award of the contract.

The tenders were evaluated strictly in accordance with Public Procurement Guidelines and E.U. Directives. At no stage prior to the award of the contract did negotiations take place with the contractor to agree the sums to be paid under the contract nor did “post-tender” negotiations take place in regard to the Tender Sum or the actual terms of the contract.

The tender documentation for this project was prepared, as is standard procedure, in accordance with the Agreed Rules of Measurement and, as is normal in tenders of this scale and size, the documentation contained a number of provisional quantities. However as part of the normal contract administration, adjustments to these Provisional Quantities can and does occur in accordance with standard re-measurement practice.

South Dublin County Council understands that a dispute arose between K.B.D. Engineering and Glenman Corporation Limited. It is also understood that the matters at the heart of the dispute between the parties has gone to Independent Arbitration and that the Arbitrator is at present dealing with the matters in dispute. From information available to this Council it is understood that the Arbitrator has issued his findings (in March 2006) and that the only outstanding matter to be determined by him relates to the costs of the arbitration. South Dublin County Council was not a party to the Arbitration and has no access to the findings of the Arbitrator.

As the matter has been the subject of an independent arbitration process, the Council had no role in relation to the matter. The Council is satisfied that in every respect that its contractual arrangements with Glenman Corporation comply fully with guidelines, regulations and normal contract administration.