Dáil Éireann Debate, Tuesday - 30 September 2025
338. Deputy Ken O'Flynn asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if he will provide a full breakdown of the average cost of €436,000 per modular home delivered under the rapid build programme, separating the costs for build components (details supplied), in tabular form. [51319/25]
Amharc ar fhreagra339. Deputy Ken O'Flynn asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the procurement processes used for the award of contracts for modular units and site works under the rapid build programme; whether these were subject to open tender, restricted procedure, negotiated procedure without prior publication, or emergency procurement; and whether any independent value-for-money assessments or external cost benchmarks were carried out before contract award. [51321/25]
Amharc ar fhreagra340. Deputy Ken O'Flynn asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the benchmarking of cost per modular unit undertaken against comparable schemes in other EU member states or in the Irish private sector; to provide the outcome of that analysis; and if not, to explain the reason such benchmarking was not carried out given the scale of public expenditure. [51322/25]
Amharc ar fhreagra341. Deputy Ken O'Flynn asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if he will publish post-completion audit reports on the rapid build modular housing programme, including the Clonmel development, showing final actual costs against projected costs; and the expected timeline for publication of those reports. [51323/25]
Amharc ar fhreagra342. Deputy Ken O'Flynn asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the measures introduced within his Department to prevent similar cost escalation in future rapid-delivery housing projects; and to outline the governance arrangements in place to monitor expenditure and ensure accountability for value for money. [51324/25]
Amharc ar fhreagraI propose to take Questions Nos. 338 to 342, inclusive, together.
On 28th June, 2022, the Government authorised the roll-out of the Rapid Build Homes Programme (Programme) to provide homes for those displaced by the Russian invasion of Ukraine, officially referred to as the Beneficiaries of Temporary Protection. The Programme comprises 654 homes for approximately 2,640 residents across eleven separate sites across the State.
General housing policy is a matter for the Department of Housing, Local Government and Heritage (D/HLGH) however, the Office of Public Works (OPW) was responsible the implementation of the Programme as a once-off and emergency response.
The OPW has worked collaboratively with the Department of Children, Disability and Equality and subsequently the Department of Justice (D/OJ) as the Lead Department, and a range of other bodies including D/HLGH, various Local Authorities and key utility providers to deliver the Programme.
From the outset, the difficulty of obtaining suitable sites resulted in delivery challenges. It is currently anticipated that the Final Account for the overall Programme will be concluded over the coming weeks. As required by the Infrastructure Guidelines, the preparation of a Post Completion Review and Benefits Realisation will follow thereafter. This will identify lessons learned and will drive the process of continuous improvement in how public bodies evaluate, plan and manage public investment projects.
The roll-out of the Programme has incurred significant capital costs, but on a longer-term basis this will generate significant savings for the Exchequer. A high-level exercise has been carried to compare the cost of serviced accommodation (bed and breakfasts, guesthouses, hotels, or similar) over a three, four, five and ten year period with the cost of the Programme. This exercise has demonstrated that the cost of serviced accommodation well exceeds the cost of the Programme over a five year period, and onward.
Due to the emergency nature of the Programme, it was classified as a matter of extreme urgency under the EU Directive governing procurement regulations. The OPW undertook an accelerated procurement procedure to select a Main Contractor to carry out site enabling works and arrange for the manufacture, transportation and installation of modular units. A contract was awarded to John Sisk & Son (Sisk) August 2022. The contract was robustly managed, monitored and controlled in line with its conditions. Thereafter, Sisk engaged with a range of modular home manufacturers and established a framework of 5 suppliers.
The Programme was and is subject to all relevant statutory and regulatory requirements along with Government financial procedures and the implementation of and compliance with the OPW’s governance and risk management processes and procedures.
The final average cost per home will comprise hard and soft costs. The hard costs include significant work that was required to enable and prepare each of the eleven sites, to ensure the provision of necessary infrastructure and services and also the manufacture, delivery, installation and commissioning of the modular homes complete with fittings, furnishings and equipment. The soft costs will include all necessary technical advice required and various other non-capital costs over the course of the Programme. As noted, it is currently anticipated that the Final Account for the overall Programme will be concluded over the coming weeks. Until that process is completed, it is not possible to fully specify a final figure or establish the cost per square metre.
