
The Department of Housing, Local Government and Heritage (DHLGH) has appointed consultant engineers, Ryan Hanley, for the provision of the review of the Design Build Operate contract model for group water schemes.
As the current suite of DBO contracts are nearing their end, the agreed assessment of the Rural Water Working Group (RWWG) is that the Design Build and Operate (DBO) model remains the most suitable and appropriate approach for much of the group water scheme sector.
The RWWG has established a dedicated working group (DBO Working Group). Its role is to oversee the range of work required to ensure that the DBO model is effective and appropriate and that future contracts support the sector and provide good value for money.
The DBO Working Group is chaired by the Department and consists of members from the key stakeholders from the rural water sector with relevant experience, knowledge and expertise. Membership includes representatives from the DHLGH’s Rural Water Unit, DHLGH - Water Advisory Unit, NFGWS, local authorities, Uisce Éireann and an independent consultant. The work to be undertaken by the consultants will be led by the DBO Working Group as the project oversight group. The Group held its first meeting with the consultants on 6 November 2024. The work to be undertaken will be done in two stages.
Stage One
Stage One involves reviewing the current DBO model as well as supporting documentation used by GWSs in the rural water sector. This stage will require the consultants to examine the range of documentation used by the sector for the current DBO contracts.
A review will then be undertaken of the alternative DBO procurement model options that are now available and suitable for use by the sector. The output from this review will be in the form of a report for consideration by the Working Group to enable progression to Stage Two. The consultants will be required to complete Stage One and report to the Project Oversight Group early in the new year.
Stage Two
In the second stage, the consultants will develop template documents for an improved contract model for use by the sector, taking account of new developments and lessons learned. Stage Two is required to be completed within 12 months of commencement with an expected completion date of February 2026.
As the existing DBO contracts will progressively be ending in the near future, tender documents for new DBO contracts are required urgently. Stakeholder engagement will be a key part to this work to be undertaken and the NFGWS looks forward to engaging with the appointed consultants, on behalf of the sector, in due course.
This article originally featured in the most recent edition of the Rural Water News magazine. To read the full edition and to sign up to our magazine mailing list, click here.