Dáil Éireann Debate, Wednesday - 25 February 2026
96. Deputy Cian O'Callaghan asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if his Department has conducted research on the impact of joint and several liability on public sector infrastructure projects; its effects on legal costs and professional indemnity insurance costs; and if he will make a statement on the matter. [15383/26]
Amharc ar fhreagraJoint and several liability is normally only imposed through a public contract where the tenderer is reliant on another entity in order to meet the economic and financial capacity requirements of the tender. It may also be applied through the contract in the context of a tenderer who is a joint venture or partnership.
Every effort is made to ensure that legal costs borne by those tenderers who choose to submit a tender where they are reliant on the financial capacity of another entity are kept to a proportionate level. However, safeguards must be applied to ensure that the party who is relied upon can be called upon to perform the contract in the event that the tenderer (or a member of the tenderer in the case of joint venture) does not.
The implications for tenderers who choose to rely on the capacity of others in order to meet the contract award requirements are set out clearly in the pre-qualification documents and template forms of guarantee are also published, along with standard forms of agreement for joint venture applicants so that they are aware in advance of submitting their tender of their obligations if they are successful in winning the contract.
