Local Authority: Tipperary County Council
Issue: Project costs over-runs
A project known as the Suir Blueway, involving a walking and cycling trail along the River Suir in south Tipperary, was initially budgeted for €2m but ultimately cost close to €3.7m.
The final costs increased 84% on the original budgeted amount, according to documents released to RTÉ Investigate under freedom of information.
The Suir Blueway was officially opened by the then CEO of Sport Ireland, John Treacy, in May 2019 amid much fanfare.
But the project had been beset with delays while the Local Government Auditor had highlighted the project on several occasions because of the significant cost overruns.
In its 2016 audit of Tipperary County Council, the Local Government Auditor said that the main contractor on the project was appointed in May 2015, following submission and acceptance of a tender price of €1.3m.
It also said that the project was scheduled to be completed by December 2015 but was hit with "significant delays on site", adding that a conciliator was appointed to resolve a dispute between the council and the contractor concerning the latter's payment claims which were above the contracted amount.
The council told the auditor that the council "expects the project to be completed shortly and the final costs will be determined once conciliation is complete."
It also said that the council would "engage in further discussions with the Department of Transport, Tourism and Sport to secure additional funding to cover any shortfall in the project".
However, the initial expected completion date, December 2015, proved optimistic.
And as subsequent audits demonstrated, the project’s costs continued to climb, well over the original contract price.
The 2018 audit noted that total payments made to the main contractor on the project came to €2.46m, a 92% increase in the actual contract price of €1.28m. It also said that following the appointment of the conciliator, an agreement was reached between the two parties.
In a letter sent to the council concerning the 2018 audit, the Local Government Auditor warned that "This significant over-run on the contract cost has resulted in the additional financial pressures on the council".
A note from the Local Government Auditor, released to RTÉ Investigates following a Freedom of Information request, stated that the project was funded by a €1.9m grant from the Department of Transport, Tourism and Sport and added that "there remains an unfunded balance" of €1.68m.
It also said that council officials "went to the Department of Transport looking for funding in September 2019 and while being given a good reception have not been given a firm commitment."
Tipperary County Council told RTÉ Investigates that it made up the project’s shortfall through additional funding of more €1m from the department.
"Due to unforeseen ground and site conditions, the outturn project works exceeded the estimated and budgeted amount of €2m," the council said.
When asked about its previous claim that the project was expected to be completed in December 2015, the council said this referred to the "main contract," which was "substantially completed in September 2017".
The council also said that it "believes that the project has delivered value for money especially given that the site was so challenging due to its location and proximity to the River Suir".
