COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL
MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, February 13, 2012
QUESTION NO. 8
QUESTION: Councillor J. Hannon
To ask the Manager for a comprehensive report outlining how the Boherboy Scheme costs have escalated from €33.5 million to €53 million, with costings included for any additional works carried out and providing the rationale for such works. Can he also outline the sources of funding and the amount in each case, and how South Dublin's portion of this cost is being financed, and at what cost?
REPLY:
The civil works for the above scheme were included in Contract No. 2 and were being executed by Pierse Contracting Limited prior to their liquidation in November 2010. At the time of their liquidation between 5 and 10% of the works under Contract No. 2 remained to be completed and these outstanding works were included in Contract No. 5 – Completion Contract, which is currently being executed by Ward & Burke Construction Limited. The Final Estimate for Contract No. 2, the ‘Pierse Contract’, was €34,840,875.97 including VAT.
| € | |
| Tender Value | 21,895,924.48 |
| Price Variation | 4,044,925.42 |
| Additional Items/Claims | 518,000.00 |
| Reinstatement | |
| Electrically Actuated Butterfly Valves | 350,000.00 |
| Pre-Laid Sections | 220,000.00 |
| Access Difficulties | 36,000.00 |
| Trenchless Technology Works | 150,000.00 |
| Control & Telemetry | 407,256.00 |
| Pipeline Kiltipper Road | 83,373.40 |
| Modifications to chambers | 549,500.21 |
| Other Pipeline Variations | 315,411.59 |
| Delay and Disruption Claim | 1,818,415.92 |
| Additional Outer Ring Road Works | 308,000.00 |
| Sub-Total | 30,696,807.02 |
| V.A.T. @ 13.5% | 4,144,068.95 |
| Total Including V.A.T | 34,840,875.97 |
As the initiation of the project pre-dated new contract arrangements it is not a fixed price contract and is subject to variations in relation to Contract Price Fluctuations, Ordered Variations and Claims.
Contract Price Fluctuations
To date, Contract Price Fluctuations in the amount of €4,044,925 have accrued in relation to the contracts under the scheme. These price variations have arisen in relation to additional cost of labour and materials and are guaranteed to the contractors under the old form of contract.
Ordered Variations
To date, Ordered Variations have accrued in the amount of €3,906,154 in relation to the contracts under the scheme. These costs relate to additional items that were added to the contract requirement as the scheme progressed and were a standard element of the old contract arrangements. Examples of these kinds of costs include -
Road Reinstatement - €518,000 (+VAT) - The Council is pursuing a higher standard of road re-instatement than normally provided for under these contracts
Electrically Actuated Butterfly Valves - €350,000 (+VAT) - Improvements to technology are being availed of where a lower standard was originally envisaged
Control & Telemetry - €407,256 (+VAT) - Approval for increased use of remote telemetric controls was sought to improve remote control capabilities for the Council and facilitate landowners by reducing access requirements
All the increased costs associated with above variations have been submitted to Department of Environment who have approved them.
The contractors have also submitted claims for delay and disruption and these are being assessed by the Council’s consulting engineers. The Claims will form part of the Final Account which must be agreed and approved by the Dept of Environment.
When Pierse Contracting went into liquidation the outstanding works had to be retendered under Contract No.5 Completion Contract which was awared to Ward and Burke which increased the cost of the Boherboy Scheme again see below.
| Amount Payable under Pierse Contract | €31,271,520.00 |
| Contract No. 5 Completion Contract Final Estimate | €4,660,000.00 |
| Sub-Total | €35,931,520.00 |
The revised civil works costs associated with the Scheme is estimated at €35,931,520.00. The scheme is funded by the Water Services Investment Programme with 71.2% being paid by the DOE and the remaining 28.8% being paid for by SDCC through levies and loans. VAT has to be added to these figures.
An element of the increase in costs is associated with the liquidation of the original contractor. Under the contract a bond is in place to cover these costs and discussions are ongoing with the Bondsman in relation to the amounts to be covered.
In addition to the above costs for the Civil works, the cost of the Mechanical and Electrical Contract, Site Investigation, Site Supervision, Legal Expenses, Land Purchase, Archaelogical investigation and Consulting Engineer fees must be added to the costs to make up the final figure for the Boherboy Water Supply Scheme which comes to the estimated cost of €53.2 million at the moment.