Lenihan under fire over construction contracts

FINANCE Minister Brian Lenihan has been accused of “leaping back into bed with the construction industry” after it emerged his department’s rules on payment for leading projects were broken.

At least 50 projects worth €150 million were signed between builders and local authorities last year under the old “costs plus” contract system, where builders could increase what they charged after the contracts were agreed. This is despite the Government introducing a new “fixed price” system last year aimed at securing better value for money for the taxpayer.

The contracts, which were mainly for water and sewage schemes, were awarded after lobbying by the head of the Construction Industry Federation (CIF), Tom Parlon, a former junior minister.