Committee Reports > List of Committees > Dáil > 1985 > Committee on Public Expenditure > Report - Control of Capital Projects

APPENDIX 9.3

LETTER FROM THE OFFICE OF PUBLIC WORKS TO THE CLERK TO THE COMMITTEE

I refer to your minute of 12 October 1984 in which you sought information regarding the prison building programme being undertaken by this Office on behalf of the Department of Justice. We would comment as follows:-

(i)Initial Design was agreed by the Department of Justice in the case of -

(ii)The only things that could be called “contracts” which existed at that time were the arrangements entered into with the various Consultants. A specimen copy of an offer of a commission is attached for reference.

(iii)Amendments to original design may be summarised as follows:-

1 (a)Accommodation was increased from 60 places to 144 places; cell units to be two storey rather than single storey; consequential enlargement of some facilities and modifications of others;

1 (b)Accommodation was increased from 150 places to 320 places using two storey instead of single storey construction. This entailed modification, relocation or redesign of the sectors for admissions/discharges, visiting, health, education, work-training and recreation. Cell shape was changed and service ducts modified and reduced to effect savings;

1 (c)Accommodation was increased from 120 places to 180 places. Consequently ancilliary accommodation such as kitchen, work-training, visiting etc. areas had to be enlarged. The design concept generally was modified to maximise the accommodation that could be provided on a restricted site and new construction techniques were used to keep costs within tolerable limits.

1(d)Reduction and other modifications were made to perimetering and to facilitate for admissions/discharges, visiting, health, education, work-training, recreation and chaplaincy. There were substantial modifications throughout to services (particularly to the boilerhouse etc.), structure and finishes to reduce costs.

(iv)Where commissions are offered to consultants, fees are payable in accordance with the terms and conditions set out by the institute catering for the particular discipline. Fees paid are the minimum charges allowed by the institute.

In the case of an architect the scale of fees set down by the RIAI for projects of the type under reference are six per cent of the total final cost. For the preparation of preliminary sketch plans fees equal to one-eighth of the total fee based on estimated costs are payable. When a developed sketch design is prepared fees equal to one quarter of the total fee are payable. Three quarters of the total fee is payable at the point where working drawings, specifications and such details as are necessary to enable quantities to be prepared or tenders obtained are provided. (At that point the fees are calculated on estimated costs and are adjusted later when the project is finished). The remaining portion of the fee is payable during construction.

The proportion of fees payable at each state mentioned is inclusive of any payment made at a previous stage.

Engineering Consultants (Mechanical and Electrical, Structural and Civil) are appointed in accordance with the terms and conditions as set down by the Institution of Engineers of Ireland. Fees are paid as a percentage of the total cost of the appropriate engineering content of any project. Generally speaking the percentage is applied on a sliding scale which reduces as the capital cost increases. The fee structure and the method of payment vary considerably amongst the different engineering disciplines and for a project, such as a prison building, would be as follows:-

A. Works of Civil Engineering Construction.

Additional fees are payable on the Reinforced Concrete Portion of the Works - including the Concrete, Reinforcement, Prestressing Tendons and Anchorages, Formwork, Inserts and all Labours, together with the relevant proportion of “Preliminaries”.

For structural steelwork, the additional fee is one half of that for reinforced concrete.

Total fees paid in instalments of 20%, 30%, 20% and 30% at different stages of the project.

B. Works principally of an Electrical and Mechanical Nature.

Additional fees on the Reinforced Concrete Portion of the Works - including the Concrete, Reinforcement, Prestressing Tendons and Anchorage Formwork, Inserts and all Labours, together with the relevant proportion of “Preliminaries”.

For structural steelwork, the additional fee is half of that for reinforced concrete.

Total fees paid in instalments of 20%, 30% and 50% at different stages of the project.

C. Structural Engineering

Total fees paid in instalments of 15%, 45%, 25% and 15% at different stages of the project.

D. Engineering Services and Associated Equipment for Buildings and other Structures.

Additional fees for Bills of Quantities.

On the first £20,000 of the sum of the accepted tender for the works.....2½%

On the remainder........................................................2%

Total fees paid in instalments of 20%, 50% and 30% at different stages of the project.

In the case of A, B, C and D above instalments amounting to 70%, 50%, 85% and 70% respectively of the total fee are paid up to the stage where tenders for the project could be invited. The balances of 30%, 50%, 15% and 30% respectively are payable after a contract has been placed and construction is in progress.

To the total fee as calculated above is added 5% on all work commissioned after 31 May, 1978. This results from an award by the Prices Commission. In the case of Quantity Surveyors, fees are paid in accordance with the scales of the Royal Institution of Chartered Surveyors. Projects such as those mentioned would attract a fee comprising a lump sum of £38,000 plus 3.5% of the balance of the total cost of the project over £1m. For the purpose of calculating Quantity Surveyors’ fees the costs of the mechanical and electrical installations and V.A.T. are not taken into account.

(v)The briefs for the projects were developed in continuing discussions between the Department of Justice and the Office of Public Works.

(vi)All drawings and proposals are submitted to the Office of Public Works for examination and there are frequent meetings between the design team and representatives of the Office of Public Works and the Department of Justice during the course of the design and execution of the project. Inspection of work in progress is carried out by O.P.W. Architects and Engineers. Cost and Progress Reports are obtained at regular intervals from the consultants. Extra costs have to be offset by counterbalancing savings and, if this is not possible, the sanction of the Department of Finance is required. In the case of the Place of Detention project at Wheatfield a Cost Control/Supervising Committee on which the O.P.W., the Department of Justice and the Department of Finance are represented has been set up and a project co-ordinator has been nominated.

(vii)At the outset the Department of Justice must seek and obtain the approval of the Department of Finance to the project. Since a new prison has not been built in the State in modern times there is not the same scale of design or costs comparison available as there would be in other types of buildings. While it is made clear that elaborate schemes are not required strong emphasis is placed on high standards of construction and finish which will have low maintenance costs afterwards, will be reasonably tamper-proof and which will conform to good architectural and engineering practice. When working drawings are completed by the Architect they are passed to the Quantity Surveyor to prepare a Bill of Quantities which enables a contractor to calculate the rates of cost of the various elements of the job. When the Bill has been prepared competitive tenders are invited and generally speaking the contract goes to the lowest tenderer. However, before accepting the lowest tender not merely the total price but each element in the Bill of Quantities as priced in the lowest tender is examined and any discrepancies queried and should such discrepancies, when corrected, have the effect of adding to the total cost, the new figure is compared again with the others to see if that tender is still the lowest. The acceptance of a tender is subject to the firm being able to provide an insurance bond to indemnify the Commissioners of Public Works and the State against any claims for loss or damage during the course of the contract. The completed building is subject to a “maintenance guarantee period” during which time any defects which are the responsibility of the contractor are made good at the firm’s expense.

All claims for payment during the course of the contract are channelled through the project architect and measured and calculated by the Quantity Surveyor. This forms the basis of the certificate issued to O.P.W. by the architect and after checking it passes for payment. Claims for fees are checked by the O.P.W. monitoring architect before being certified for payment. When a project has been completed the contractor prepares a draft final account which is discussed and examined in detail by the Design Team and when agreed with the contractor is sent to O.P.W. where it is again checked and paid if in order. As already stated at (vi) above during the course of the contract a Progress Report accompanies each Certificate. In addition, Cost Reports are obtained. These reports identify variations or extras which require O.P.W. and sometimes Department of Justice approval. When any such variations or extras result in an increase in the overall cost of a project supplemental Department of Finance sanction must be obtained.

(viii)In the first place many projects are designed by O.P.W. staff and commissions to architects in the private sector are offered only when we are not in a position to take on the task ourselves. Where such commissions are offered the Office of Public Works assigns an architect to monitor the job.

Always the design team is full briefed in relation to the specific needs of the client Department. In addition, the team is briefed in general terms on such matters as form of construction to facilitate internal layout, width of building, vertical controlling dimensions, services and service cores, fenestration, floor loadings, insulation, etc. This general briefing is based on our experience over the years and is influenced by our responsibility for maintenance.

The sketch plans of every project are critically examined in this Office and commented on or rejected as is considered necessary. The need to reject a design arises infrequently.

As long as he adheres to the specified requirements, the Design Architect is, of course, free to apply his own particular interpretation to the brief.

(ix)Normally, when working drawings and the Bill of Quantities have been prepared, competitive tenders are invited by way of public advertisement. In the case of prison projects, tendering is confined to a selected group of contractors (usually about six) known to have the capacity and expertise to handle the particular project. The tendering is restricted in the interests of security. The contract is awarded to the lowest suitable tenderer. If, for any reason, it is considered necessary to pass over a tender, specific authority to do so must be obtained from the Government Contracts Committee.

D. C. O Griofa.

14 February, 1985.

SPECIMEN

To Consulting Architect,

Re:Name of Project

A Chairde,

We require the services of a Consulting Architect in connection with the above project and are prepared to offer you the commission if you can undertake the work in the time required. Fees will be payable in accordance with the scale of minimum charges of the Royal Institute of the Architects of Ireland.

If you are interested in the commission you should contact our Assistant Principal Architect in charge of the project to discuss the matter further.

You are requested to confirm your acceptance of this offer of a commission.

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