The Breakfast briefing on the Capital Works Management Framework was held on Wednesday July 24th. William Brown, a construction lawyer and procurement specialist, kept the audience of public sector procurement and construction professionals engaged as he analysed the intricacies of the Capital Works Management Framework.
The session delved into issues such as procurement strategies, instructions to tenderers and requirements for tenders and appropriate contract selection. Examples including that of BAM vs The National Treasury Management Agency, provided intriguing practical scenarios for the implementation of the Capital Works Management Framework. This case examined if the NTMA had discretion to accept tenders which came in after the stated deadline, as was the case of BAM’s tender application in 2015. An interesting discussion followed on whether the ruling was justified.
Another case cited was the case of MT Hojgaard v E.ON (2017). MT Højgaard was engaged by E.ON to design, fabricate and install the foundation structures for 60 offshore wind turbines in the Solway Firth. Shortly after completion, connections incorporated within the foundation structures failed. The parties agreed that E.ON would develop a scheme of remedial works, the cost of which amounted to €26 million.
Practical advice was provided for dealing with abnormally low tender offers and what to do in the case where an authority considers the tenderer to be unable to carry out the contract. An interesting and helpful analogy was his likening of the procurement process to that of a funnel – when tender applications are received, they are reduced gradually from exclusion criteria at the top of the funnel to award criteria at the bottom. Details regarding contract selection were also laid out and the differing criteria depending on the cost of the project.
To Conclude, the Breakfast briefing for the Capital Works Management Framework was an intriguing and informative session which would be invaluable to anyone involved in public procurement.
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Jude Perry, Public Affairs Ireland.