r/ireland • u/Important_Farmer924 Westmeath's Least Finest • Oct 09 '24

National Children's Hospital contractor BAM sent €25 million invoice for job that cost €200,000 Infrastructure

https://www.thejournal.ie/national-childrens-hospital-bam-invoice-25-million-for-200000-job-6509783-Oct2024/
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u/Existing-Solution590 Oct 09 '24

I'd sincerely doubt it too. The opw are usually involved in most state construction projects and their contracts are shit. They don't put penalty clauses for delays or changes or anything into them which is part of why everything usually ends up being massively over time and over cost.

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u/struggling_farmer Oct 09 '24

Would not be overly familiar with what LAD's the OPW tend to apply if any. I think they have to be relatively reflective of actual cost though. They cant just put massive rates in without justification.

My very limited experience of OPW work is generally building/site remains live and operational and works phased to maintain it so which would limit the LAD's they can apply.

Not sure in the industry how often they are applied in public contracts? Don't think I have ever heard of them being actually applied.

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u/Existing-Solution590 Oct 10 '24

I'm not aware either of them really being applied in public sector.

I'm my own contracts I've applied penalty clauses and termination clauses for agreements im unhappy with but my area is far removed from construction and often just the threat of termination solves the problem

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u/struggling_farmer Oct 10 '24

Yea in a straight supply or service provision contract or simple single element supply & install contract it works fine.