City Council accused of ‘serious overspend’ on contracts

Galway City Council has been accused of “serious overspending” after it emerged there was cost over-runs of nearly €3 million on projects in just one year.

The biggest over-spend recorded was some consultancy work on Seamus Quirke Road, which ran to four times its initial budget – from €260,000 to more than €1 million.

In fact, in a sample of contracts awarded in 2013, the Local Government Auditor (LGA) noted an overspend of €2.8m.

The over-runs relate to projects like the N6 improvement scheme, water leak repairs, and community facilities in Knocknacarra, Corrib Park, Bohermore and Leisureland.

Figures just released by the local authority show that in 2013, the LGA took a sample of 32 contracts from the City Council to gauge if procurement guidelines were properly followed.

He found that 17 exceeded their tender price, five were never tendered and just 10 were within the tender price.

Fine Gael councillor Padraig Conneely has branded the overspend as “massive” and said it raised serious concerns.

The LGA said: “I reviewed a sample of 32 capital contracts to determine if procurement guidelines were properly followed. Seventeen contracts were in excess of the tender price. The contracts involved had cumulative tender prices of €9.6m, whereas payments to the end of 2013 totalled €12m.

“Five contracts in excess of the tender threshold were not tendered. These contracts cost the Council €674,000. Ten contracts were in accordance with the tendered price,” the LGA’s report reads.

The City Council’s Chief Executive, Brendan McGrath said that in each case, the relevant department responsible for managing and monitoring of the contract was requested to explain the procurement process, and the variations between the contract price and the total payments.

“Public Procurement Guidelines and Procedures were adhered to during the award of the contracts in order to ensure best value for money was achieved.

“However, in all public works contracts, particularly in more complex projects/works contracts, some delays and variations are inevitable and increases in both price and materials may therefore arise over the term of the project,” said Mr McGrath.

For more on this story, see this week’s Galway City Tribune