Leinster House bike shed report says no value for money assessment carried out
The Office of Public Works (OPW) did not carry out a value for money assessment before building the contentious €345,000 Leinster House bike shed.
A new external report has also found that it did not present the costs to the Houses of the Oireachtas Commission before going ahead with the project, nor did the body responsible for running Leinster House ask about the cost.
The new bike shed, which provides parking for 36 bikes, caused consternation in September when it emerged that the structure had cost €345,000.
A report written in September 2024 by OPW Chair John Conlon stated that the cost was 'completely not acceptable' and 'not consistent with the scale of the project'.
He referred the case to Deloitte to conduct an external audit.
The report, published on Thursday stated that 'a value for money assessment was not conducted for the Bike Shelter project and currently is not standard practice for elective capital expenditure less than €500,000'.
It also stated that the OPW did not 'communicate an estimate of costs to the Houses of the Oireachtas Commission prior to the approval to proceed being received'.
Deloitte stated: 'Our internal audit review has identified the absence of some fundamental good practices in how certain elective capital works (including the Bike Shelter) below the €500K threshold are being initiated, approved, managed and delivered.
'The most fundamental of these control gaps is the absence of a value for money assessment which would have allowed informed OPW personnel to evaluate the cost benefit of building a covered bicycle shelter in the requested location within the Leinster House campus.'
Deloitte stated that while it 'appreciated' that the OPW 'deals with some very large multi-million Euro capital projects' and that many of its processes are designed for larger projects, 'the importance of adhering to good practice for all capital expenditure (including elective capital works below €500K) cannot be overstated'.
The report stated that some 'expected practices' outlined in the Public Spending Code were followed by the OPW.
This included the 'performance of a simple assessment, development of a project specification and plan, preparation of project costing, and development of a project procurement strategy".
It added that 'the reasons for the costs associated with the Bike Shelter project should have been documented in a value for money assessment which should have been performed within the OPW as part of a robust options appraisal process'.
Deloitte stated that 'a formal and documented sense check on cost vs benefit together with lower cost alternatives, and the option of doing nothing, should then have been presented back to the Houses of the Oireachtas Commission as part of a robust options appraisal'.
They said: 'Approval to proceed with the project should only have been formalised when these evaluations were complete.'
The report further found that the OPW did not inform the Houses of the Oireachtas Commission of the estimated project costs at any stage of the Bike Shelter project.
It added: 'The June 2021 decision to proceed with the Bike Shelter project was made without presentation or discussion of project costs – the HOC did not request cost information and the OPW did not present cost information.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
3 days ago
- Irish Examiner
Leinster House cycle shed construction was delayed after manhole discovered on site
Construction on Leinster House's controversial €336,000 bicycle shelter had to be halted after a large manhole was 'discovered' on site that was not spotted when drawing up site plans. The OPW told contractors to halt work in the vicinity after 'the uncovering of a significant piece of below ground drainage infrastructure' along with the two-foot-wide manhole. A note of a site visit in August 2023 said the discovery meant the OPW would need to reexamine the structure of the bicycle shelter and whether any changes were needed. It said: 'Please now fully cordon off the area around manhole with barriers and place hazard warning signage to note associated risks. Please also notify all site operatives of this site exclusion zone.' Delivery of bike shed 'critical' The delay caused angst within the Office of Public Works who said the entire summer recess of the Dáil had 'now been missed' for carrying out works on the bicycle shelter. An email said: 'For context — in the past OPW were not permitted to work outside these recess periods and the flexibility on site has been hard won over the years by tight management and actively delivering projects. 'With increased security concerns and the visibility of these projects — this flexibility can be rescinded at any time by Leinster House.' The message, sent in September 2023, said delivery of the bicycle shelter was now critical and sought urgent updates on progress. They asked that contractors to 'confirm without further delay' how to deal with issues around the foundations and whether it would affect an adjoining wall. The email said: 'This needs to be fully resolved and instruction to start for Friday with the approved option so that ground works can start on Saturday.' They also asked for an update on when granite would be delivered for the site and a final date for delivery of the bicycle shelter. It said: 'Fully completed bicycle shelter must be returned to Leinster House on 14th January [2024].' Delays on the project continued however, and the bike shed was not available for use until several months later. Appeal to Information Commissioner The records were only released following an appeal to the Information Commissioner under Freedom of Information laws. The OPW had claimed they held no documents that dealt with either delays or cost overruns on the project but were told to reconsider that decision. In an information note, they said the €336,000 project was covered under the 'Maintenance and Minor Works Framework' for delivery of certain projects. The note said: '[The framework] has the flexibility to accommodate stopping and starting of works based on (a) discovery of unknown issues on site and (b) operations of the Houses of the Oireachtas. 'The [framework] allows for closure of site at short notice without incurring delay claims and costs for stoppages, which would be part of the standard public works contract.'
Irish Examiner
4 days ago
- Irish Examiner
One in five Irish CFOs expect revenues to fall
Optimism levels among Ireland's CFOs have weakened significantly over the past year. Deloitte's latest CFO survey reports just 28% of Irish respondents say they are more optimistic about their company's financial prospects than three months ago. That figure is down from 60% in spring 2024, and only a modest recovery from the 19% recorded in autumn 2024. Based on responses from 1,542 chief financial officers across 14 European countries, the survey also reports 60% of CFOs now report operating in a high-uncertainty environment, up from 53% in spring 2024. The Netherlands, Portugal and Ireland have the highest number of CFOs saying they are less optimistic, while Germany had the highest number of CFOs feeling more optimistic (45%). In Ireland, one in five CFOs (22%) expect their revenue to fall, while 45% say they expect to see their revenue increasing over the next 12 months, slightly lower than the European average of 52%. Tom Hynes, Deloitte Ireland partner, says finance leaders are now facing a markedly more volatile global landscape: 'Geopolitics is clearly weighing on CFO sentiment. The changes to global trading structures now mean there is enhanced geopolitical shifts, and the vast majority of CFOs in Ireland now expect tariffs and global tensions to directly affect their operations," he said.
Irish Times
5 days ago
- Irish Times
Locals block OPW vehicles at Castletown House as dispute over access continues
Locals stopped essential service vehicles entering Castletown House estate in Celbridge, Co Kildare on Monday as the long-running dispute over public access to the site shows no sign of abating. On Monday morning Office of Public Works (OPW) staff attempted to use motorised buggies to accompany the vehicles from the Celbridge gate entrance along Lime Avenue, a path leading to the house used by locals and protesters, who claim it is not suitable for vehicles. Locals from the Save Castletown Gate Protectors (SCGP) group said the use of the route by service vehicles would make it unsafe for vulnerable pedestrians and people who use wheelchairs. Gardaí were also present at the scene of Monday's stand-off. READ MORE The dispute over access to Castletown House has been ongoing for 20 months. The house was acquired by the State in the 1990s and sits on a large estate that is popular with local walkers. The house, one of the most architecturally significant Palladian-style country homes in Ireland, was closed in 2023 in a dispute over a right of access to its lands. On the estate a 235-acre parcel of land that stretches from the M4 entrance to the house, was bought by a developer Kilross Properties in April 2023. The gate to Castletown House at Celbridge, Co Kildare. Photograph: Stephen Farrell The M4 entrance and nearby car park were closed to the public and to the OPW. OPW staff returned to Castletown House on April 10th for the first time in two years, with a goal of opening the house to the public at the end of May. Local representatives joined protesters at Monday's peaceful stand-off. They included Social Democrats TD Aidan Farrelly and Fianna Fáil TD Naoise Ó Cearúil, and councillors Rupert Heather (Lab), Nuala Killeen and Claire O'Rourke (both Social Democrats). [ Vandals cause €500,000 worth of damage to OPW site used to access Castletown House Opens in new window ] The OPW want four to five essential services vehicles to drive daily along Lime Avenue accompanied by a buggy. They announced this plan on social media on Friday. The State's property management agency said the use of the avenue is safe, citing a health and safety report carried out in 2024. Protesters from the SCGP group have proposed that any essential service vehicles are accompanied on foot by an OPW staff member. The OPW said this would be too costly, at €10,000 a year – a figure disputed by protesters. Locals want the entrance at the M4 Dublin to Galway motorway and nearby car park reopened to the public, which would also allow for ease of access for essential services vehicles. [ Challenge brought over alleged unauthorised erection of gates blocking access to Castletown House Opens in new window ] 'Lime Avenue is not the solution,' said Miriam Flynn, a member of the SCGP group. 'The solution required is for the Minister to do what's necessary for there to be access via the M4 entrance.' The OPW said it was developing an application for planning permission, which will be made this summer, for a visitor car park in the Kildare Innovation Centre. Ms Flynn criticised the delay in applying for this planning permission. Local woman Monica Joy, a member of the SCGP group, expressed frustration that local residents do not have proper access to the house and its grounds. 'If you take a drive around Celbridge, there are no amenities. There is no investment for communities even though huge numbers of houses have been built,' she said.
