Construction BUSINESS

ISME Expresses Concern With Lowest Price Bid Tendering

 Breaking News
  • Construction Companies Turning Again to Apprentices to Build the Future Construction companies are eager to hire apprentices again after the decade decline in apprenticeship registrations has been arrested. A Construction Industry Federation (CIF) survey has found unanimous support for apprenticeships, however 73% of construction companies feel that they are not able to hire an apprentice. According to a survey carried out by the Construction Industry Federation, 23% of [...]...
  • €31 Million Project Secured For Floating Wind Project Off the West Coast A €31 million project has been approved for an ambitious four-year floating offshore wind project. Subject to consenting, it is planned  that a full-scale floating wind turbine be deployed for testing off the west coast of Ireland at a Sustainable Energy Authority of Ireland (SEAI) test site near Belmullet, County Mayo, by 2022. The project is [...]...
  • New Opportunities For Construction Companies as Dublin Airport Invests Over €1 Billion in Capacity Expansion Having welcomed 31.5 million passengers during 2018 – a new record – Dublin Airport is currently being expanded to ultimately cater for more than 20 million additional passengers. “We are building an airport to accommodate 55 million passengers a year,” pointed out Brian Collier (pictured above), Head of Construction Procurement at daa (Dublin Airport Authority), when [...]...
  • OPW Prepared For No Deal Brexit “If there is a ‘crash-out’, we will be ready. We are working 24/7,” said Maurice Buckley (pictured), Chairman of the Office of Public Works (OPW) and Vice President of Engineers Ireland, about preparations for installing infrastructure at ports and airports in the event of a ‘no deal Brexit’. “Eighteen separate construction projects are now underway [...]...
  • Irish Builders Face Cost Hikes in UK Materials The vast majority of building materials used in the Irish construction sector are either sourced in the UK or enter Ireland through international distributors in Britain and represent a major risk for the industry, according to executives at the recent National Construction Summit in Citywest, Dublin – writes John Whelan (pictured above). And a huge majority of [...]...

ISME Expresses Concern With Lowest Price Bid Tendering

ISME Expresses Concern With Lowest Price Bid Tendering
October 30
09:17 2018

Following the award of school building contracts to Western Building Services after fire defects had been identified, ISME, the Irish SME association, has expressed concern with how public works contracts are granted to the lowest cost tenderers.

Commenting on Western Building Services investigation, ISME Vice Chair Ross McCarthy noted: “While we do not know the details surrounding structural safety concerns with recently completed schools, the issue highlights the importance of carefully managing construction projects in the public sector. There is a concern that public works are rewarding lowest cost bidding behaviour. The issue has highlighted the importance of carefully managing the award and then delivery of construction projects in the public sector. Lowest price bid tendering does not necessarily mean cost-effectiveness. The technical and value-for-money merits of competing bids in the tendering process are being ignored. Contract management is also key.”

Regarding excessive costs, Ross McCarthy added: “It is likely that the remediation costs associated with the schools, and potentially hospitals,involved in the current investigation will run into the many tens of millions. When this remediation cost is added to the initial tender cost, it may well exceed many of the competitive bids that lost out on a cost basis.”

ISME does not believe that the current lowest cost driven method is the most appropriate one to apply in the procurement of fixed assets with a 40-plus year life-cycle.

About Author

admin

admin

Related Articles


Constrcution Summit

PROMO – Construction Summit 2016 – Sustaining the Momentum

Lean Construction Ireland – Enhancing Ireland’s Competitive Advantage

The Magazine – Construction Business

The Magazine – Construction Summit 2016

The Magazine – Construction Summit

Upcoming Events

  • No upcoming events
AEC v1.0.4

New Subscriber

Subscribe Here



Advertisements