Sewage contract - Money down the drain in Limerick

In his annual report published yesterday Comptroller and Auditor General John Purcell, the state spending watchdog, highlighted the sewage works contract in Limerick that was priced at €9.5 million, but will end up costing the taxpayer at least €83m.

Mr Purcell noted the failure of the Department of Environment to issue dispute resolution guidelines for Limerick City Council, which became implicated in the massive over-run as result of a dispute with a construction company that submitted the lowest tender for part of an overall drainage contract.

Rather than cutting its losses when the company ran into difficulties over ground conditions, the city council rejected a settlement offer and went to arbitration.