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SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, April 06, 2009

QUESTION NO. 7

QUESTION: Councillor S. Crowe

To ask the Manager in view of the crisis facing many of those involved in the contstruction industry will he confirm if he is satisfied with the criteria that is in place to monitor contractors, sub contractors and sub contractors of sub contractors, employed in public housing projects schemes  in the County area, that they are tax compliant, pension compliant and also compliant with the industries registered employment agreement?

REPLY:

There are two forms of contract currently in use;

1. The GDLA (Government Departments and Local Authorities) Contract - used since 1983 for all works tendered prior to the implementation of the new GCCC (Government Construction Contracts Committee) contracts introduced in 2008. This is a standard national form of contract as approved by the Department of Finance in consultation with the Construction Industry Federation (CIF) and the professional bodies representing architects and chartered surveyors. Up to 2008, all Government Departments and Local Authorities were obliged to use this contract for works wholly or partial paid from Exchequer Funds.

2        The GCCC suite of contracts introduced in 2008 are designed to facilitate greater financial and program control by the government agency letting the contract. The contract provides for a higher level of      response and responsibility regarding statutory compliances, site management, health & safety, recent legislation and compliance with current labour law. All future new contracts signed by the council will use this new contract suite.

Almost all current contracts are let under the GDLA form of contract as the tendering process was conducted prior to the introduction of the new contract suite.

The GDLA contract, provides for compliance with current labour laws and national agreements. Guidelines from the GCC (Government Contracts Committee) in relation to award of contracts are as follows:

5.11 Compliance with Agreements on Pay and other Conditions of Employment.

In construction contracts, Contracting Authorities should ensure that tenderers apply rates of pay and observe terms and conditions of employment not less favourable than those provided for in any Registered Employment Agreement, Employment Regulation Order or other approved agreement negotiated between employers and trade unions in the industry or service concerned.

5.12 CIF Pension/Sick Pay Scheme

The Construction Industry Federation (CIF) Pension/Sick Pay Scheme is legally binding on all Contractors and sub-contractors in the construction industry in the State and building Contractors employed on projects should therefore comply with their obligations to make appropriate pension fund/sick pay contributions. Before a contract is awarded, evidence of membership of the Scheme may be sought from the Contractor in the form of, say, receipts for payments made. The CIF may be consulted for evidence of membership in specific cases.

All contractors are checked for compliance with tax and statutory enactments and agreements prior to the signing of the contract.