Six month delay on Saggart Community Centre works

THE contractor for renovation works at Saggart Community Centre has withdrawn from the tender.

It will lead to, at least, a six month delay for a project which was expected to be underway at this stage.

Plans to transform the old St Mary’s National School in Saggart into a community centre and civic space, were greenlit by South Dublin County Council last year.

Contractual and legal agreements between the council, Saggart Community Centre Board of Management and the building contractor were being finalised during the summer.

“It is disappointing. I previously reported that we hoped to have the contract for the Saggart Community Centre signed and the project under construction at this stage,” said South Dublin County Council CEO Daniel McLoughlin on Monday.

“As events have transpired, the contractor/preferred bidder has withdrawn, which means we have to now go back to the market and re-tender.

“The Board of the community centre have been advised and they understand the circumstances and have been fully appraised.”

Saggart is the latest in a number of alarming delays to public sector contract projects across the city, with rising material costs a contributing factor.

In September, Dublin City Council announced redevelopment plans for Kilmainham Mill have been delayed, after the contractor withdrew from the project.

At the time, Bruce Philips, Assistant Area Manager DCC, said the situation is occurring on a lot on public sector contract work, with rising costs and Covid impacting projects.

“It is unfortunate but we are tied by a quite a rigid procurement process and we can’t take account of inflated increases of prices, which contractors are looking for due to shortages of labour and materials,” said Mr Philips.

The price of building and manufacturing materials has sky rocketed over the last six months, and there has been serious shortages in timber.

This point was echoed at the meeting on Monday by Cllr William Carey (SF), who sought clarification from the CEO on costs surrounding public projects.

“I have a serious concern that the withdrawl could be an indication of issues that are coming up around costing for materials with materials literally going through the roof,” said Cllr Carey.

“If costs are an issue, this could have further implications down the line.”

Responding to Cllr Carey, Mr McLoughlin said it is a concern, but he expects inflation and supply chains to “smooth out” within 12 months.

“I’m not going to comment on the circumstances of the withdrawal of the tenderer, but obviously the passage of time since the initial tender and by the time that goes out to tender, and what has happened in the intervening period, I do expect the tender price to go up,” said Mr McLoughlin.

“As I said in the capital report in October, that inflationary pressure is a concern across the entire capital programme. I still hold the view it will not stop any project, but it may be painful across the entirety of the programme.”

He said a lot depends on the extent of which the council could be left to uphold costs on projects or whether co-funders will step up.

With the council embarking on quite a few tenders, Mr McLoughlin said they would get a “good flavour as to where we are at” in relation to construction costs on projects by the end of February.