NRA action on escalating costs

A move aimed at stopping escalating road-building costs is to be announced by the National Roads Authority (NRA) today.

The authority, which has been facing criticism for massive cost over-runs in the road-building element of the National Development Plan, will use the launch of its "Review of 2002 and Programme for 2003" to defend its practices, and explain that it plans to move away from variable price road-building contracts.

The authority will outline its arrangements in terms of compensation to land-owners, arbitration costs, High Court challenges and State contractual procedures.

Among the details expected on the costs of arbitration is the deal worked out between members of the Irish Farmers' Association and the Government over compensation to farmers for land required for road-building.

In relation to fixed or variable price road contracts, the authority will detail the need for its price variation clauses which allow the contractor to seek more time and/or money for unforeseen items, such as ground conditions, poor weather and changes to the original design.

The authority successfully sought approval from Government for a new form of contract which it piloted on the M9 Moone/Timolin section of the Dublin to Waterford road.

The new contract transfers the risk in relation to some factors to the contractor, but such contracts will retain a price variation clause in relation to items such a inflation, which will be linked to the Consumer Price Index.

Eight national road schemes were completed in 2002, while six are continuing in 2003. The six include large schemes such as the Dublin Port Tunnel and the South Eastern Motorway, each with a total value of some €700 million; the M7 Kildare By-Pass Motorway; the N7 Limerick Southern Ring Phase 1; the N11 Ashford/Rathnew Dual-Carriageway; and the N22 Ballincollig By-Pass Dual-Carriageway.

Schemes expected to begin this year include: the N1 Dundalk Western By-Pass Motorway; the N2 Carrickmacross By-Pass; the N4 Kilcock/Kinnegad By-Pass Motorway ; the M7 Monasterevin By-Pass Motorway; the N7 Naas Road (Kingswood Interchange); the N8 Cashel By-Pass Dual-Carriageway; and the N25 Waterford City By-Pass.