CIC meet with Minister Paschal Donohoe Re the introduction of Net Contribution Clauses < back to blog

11 Aug 2023

Recently, the CIC met with Minister Paschal Donohoe to discuss the introduction of Net Contribution Clauses across all Government projects. 

This meeting followed a request from the CIC after a series of correspondence on the issue of the introduction of Net Contribution Clauses in public sector contracts. The CIC’s objective is to have these clauses introduced into the PWC as soon as possible to provide a better fairer business environment for all stakeholders in the construction industry.  Ulitmately, this will see the NDP and other key Government strategies delivered more cost-effectively.    

 

This meeting was set up to highlight the importance of these clauses in supporting the delivery of the NDP and to secure the Minister’s support in taking the policy decision to introduce these measures. Points of note The CIC warmly welcomed the enhanced engagement between the Government generally over the past few years. Specifically, the establishment of the CSG and the recent amendments to the PWC were welcomed as very positive.  


Minister Donohoe informed the group that this Government will continue to introduce measures in the coming months that are aimed at ensuring stable and sustained capital investment throughout the economic cycle. This is aimed at reducing volatility in capital investment to provide certainty to the market and facilitate optimum infrastructure and planning. The CIC delegation informed the Minister that Net Contributory Clauses would help shape a fairer and more efficient industry where every stakeholder managed the risk, they were best suit/equipped to manage. The benefits of NCCs in terms of improving the levels of Professional Indemnity Insurance available to the industry was also stressed.


The Minister accepted first hand accounts of the problems arising from the current situation i.e., the ‘1% rule’ and committed to revisiting this issue after the recent amendments to the PWC have had a chance to bed in.

 

The CIC offered to work directly with OGP officials over the coming weeks with a discussion to take place at the next CSG in October.