OPW warned Government of risks to successful delivery of modular homes for refugees

The State agency tasked with delivering 700 modular homes for Ukrainian refugees told the Government it was “seriously concerned” about the availability of suitable sites for the successful delivery of the project.

The Office of Public Works (OPW) also warned of the urgent need to finish engagement with local communities if the original timetable for delivering the first homes was to be met.

Records released under Freedom of Information show those warnings came in the weeks before it was confirmed that the first homes would not be in place in November as hoped.

Amid continuing pressure on Ireland’s reception system for refugees, the first 200 modular homes – for 800 people – are now not expected to be installed until early 2023.

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The current plans are for 700 modular homes overall.

The OPW told The Irish Times the latest cost estimate for the original 500 rapid build units alone is €140 million, up from the €100 million plus it had expected.

It said factors that have led to an increase in costs include the “overall inflationary environment in the construction industry; severe supply chain challenges”; and the cost of “significant remediation works” at the available sites.

[ OPW expressed frustration modular home sites not identified ]

Construction firm Sisk is contracted to prepare the sites and order 700 rapid build modular homes.

Some 206 homes will be across five sites in Cavan Town; Mahon, Co Cork; Thurles, Co Tipperary; Doorly Park, Co Sligo; and Claremorris, Co Mayo with the first units due to be ready early in the new year. Further sites – due to be confirmed in the coming weeks – are under consideration as part of a second phase of development.

The documents released to The Irish Times show that the OPW’s chairman Maurice Buckley wrote to Kevin McCarthy, the secretary general of the Department of Integration on September 9th outlining the concerns of Minister of State for OPW Patrick O’Donovan surrounding the “urgent need to accelerate” community engagement so that process would be finished to allow the contractors to go on site.

There have been some objections from communities in places identified as suitable locations for modular homes with concerns expressed about the capacity of education and health services.

In his email, Mr Buckley said it is “imperative” that community engagement be completed “over the coming days” adding that if this was not done the delivery timetable would not be achieved.

Mr McCarthy wrote back saying his Department shares “the objective of completing the community engagement aspect of this as quickly as possible”.

A Department of Children statement said the time frame for the project was “recalibrated” in the light of experience of evaluating the suitability of sites, engaging with community representatives and the timescale for the manufacture of the homes. It added: “This was in line with best practice.”

The OPW told the Dáil’s Public Accounts Committee (PAC) in December that 73 possible sites have been evaluated and three-quarters of these have been deemed not suitable.

Further records show that Mr Buckley wrote to Mr McCarthy and Department of the Taoiseach assistant secretary general Liz Canavan on September 22nd saying: “We are seriously concerned now about the availability of sites of sufficient quality for our €100m+ programme to be successful.”

A briefing note from the same day highlights the “immediate challenges and urgent actions required” and the “risk to programme delivery timelines”.

It sets out how the signing of the contract had been postponed “pending confirmation that the risks to the programme ... can be successfully addressed”.

It also says that “to mitigate the risks associated with the existing list of sites”, it is “essential” that the [Department of Housing] provide additional sites that are suitable for housing so that the overall programme can be delivered.”

[ Planning changes mean modular homes can be built more quickly, says Taoiseach ]

The OPW told The Irish Times it is the sponsoring agency for the modular homes programme with the Department of Housing identifying sites that might be suitable.

It said the records released “highlight the range of issues and challenges that arise in a nationwide construction project of this nature”.

It added: “It is to the credit of the various departments/agencies ... that those challenges can be addressed and managed appropriately.”

It said the Department of Housing is “actively involved in the identification of further sites for potential inclusion in the programme to ensure that sufficient capacity will be available for the installation on site of the additional 200 rapid build homes [on top of the original 500] that have been ordered.”

The Department of Housing said it continued to work in close co-operation with the OPW, and other agencies, to identify and review local authority owned sites that may be suitable for modular homes.