A smart procurement solution, as follows, could help accelerate housing construction activity.
The Land Development Agency, the contracting authority, on its own behalf and on behalf of Approved Housing Bodies, tenders for the construction of an initial quantum of 100,000 social and affordable housing units on identified public sites where planning permission has been secured.
Using the Competitive Dialogue procurement process, the LDA negotiates the technical specifications for distinct housing unit types with pre-qualified potential contractors.
A maximum of three contracts are awarded with a guaranteed minimum of between 25,000 to 40,000 units to be allocated to the preferred contractors. This arrangement is designed to attract bidders of scale from outside Ireland.
Contractors bid on the basis of a fixed price per type of housing unit, adjusted for annual inflation, with a ten-year warranty period.
Prevailing guidance on sustainable construction practices, modern methods of construction, and the use of low carbon construction products apply.
The Department of Housing’s role is limited to oversight and financial audit.
Bespoke contract terms to be based on FIDIC/NEC forms.
A SEAI grant of upwards of €50,000 is allocated towards the cost of building units to a B2 energy efficiency standard. Grant levels per unit type to be negotiated with successful contractors. The grant would be deducted from the contractor’s agreed cost per unit.
Views are welcomed.
Copyright Bid and Tender Management Services Ltd. The material in this post is purely for information and discussion and does not purport to advise on matters of law.