Tendering process - System is abused

One of the regular insanities of recent history was the awarding of public contracts at a set price only to discover on completion of the project that costs had escalated, often in multiples of the original tender figure.

This was such a regular occurrence that it completely undermined the entire tendering process creating the impression that original bids were little more than opening bids to secure contracts and the bill could be inflated later.

Clare County Council has been involved in a case where a contractor tendered for €6.1m but billed for €11m. After a protracted wrangle, a settlement was made for an additional €1.64m.