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Extra.ie
16-05-2025
- Business
- Extra.ie
OPW neglected value analysis of €335k bike shed before go-ahead
No 'value-for-money assessment' was carried out before forging ahead with the controversial bike shelter at Leinster House, a review of the project has found. Deloitte was commissioned by the Office for Public Works (OPW) to review the project after it came to light late last year. It found that there was an 'absence of some fundamental good practices' in the OPW, which led to the spending of €335,000 on the bike shelter. The report also found that a proposal by the OPW to locate the bike shelter in front of the 1966 block beside the Members' Dining Hall was discounted after a security review by the Oireachtas and gardaí. This was despite a bike shelter being used underneath the Agricultural building, which is less than 200 metres from the site of the new bike shelter. The report found: 'On June 21, 2021, a proposal to install a covered bicycle parking shelter with capacity for 36 bikes beside the railings at the western end of the National Gallery was proposed to, and approved by, the Houses of the Oireachtas Commission (HoC) without costs being provided. Bike shelter at Leinster House. Pic: Sasko Lazarov / Throughout this time (December 2019 to June 2021) when options were being proposed to the HoC, the option of doing nothing, as required by the Public Spending Code, was not formally presented to the HoC by the OPW.' The Deloitte report said: '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 €500k.' The report also found that the OPW did not communicate the estimates of the cost to the HoC. 'The estimated cost for the project, prepared in April 2023, was €350,000. The OPW did not communicate this estimate of costs to the HoC.' While many of the established and good practices were followed, the report added: 'However, 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. Frontage of Leinster House. Pic: Shutterstock 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. 'While we understand from our discussions with the OPW that they were primarily focused on delivering to the HoC, the reasons for the costs associated with the bike shelter project should have been documented in a value-formoney assessment which should have been performed within the OPW as part of a robust options appraisal process. 'We understand that some of the reasons for the cost levels included alignment of the bike shelter with the fabric of existing structures and maintaining the important city centre space to a high standard. Bicycle area. Pic: Shutterstock 'Regardless of the reasons, a value-for-money assessment should have been performed and the outcome of this value-formoney assessment (in effect 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 HoC as part of a robust options appraisal.' The report added: 'There is currently no governance structure within the OPW for ensuring Value For Money (VFM) assessments are performed for capital projects with a projected budget below €500k.' Public Accounts Committee member and Social Democrat TD Aidan Farrelly said: It is shocking, but not surprising, that the audit published today by Deloitte confirms there was no value-formoney evaluation carried out on this project, which cost taxpayers a whopping €335,000.'
Irish Examiner
15-05-2025
- Business
- Irish Examiner
Report into Leinster House bike shed found OPW failed to carry out 'value-for-money' assessment
There was an absence of 'fundamental good practices' by the Office of Public Works (OPW) when delivering a €335,000 bike shed in Leinster House, an external audit has found. A new report outlines the OPW did not conduct a value-for-money assessment for the bike shelter project in advance of the work taking place. External auditors Deloitte found the Houses of the Oireachtas Commission, which oversees Leinster House, was not informed of the potential cost of the project ahead of construction beginning. Deloitte found in April 2023, the OPW estimated the bike shelter project would cost €350,000, but these costs were never provided to the commission. While it states some standard practices were followed by the OPW in the project, others were not. The audit reads: '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. 'Where there is a lack of oversight of projects, there is a risk that these projects may not represent value for money or may not deliver to exact requirements in an efficient and effective manner.' While the OPW was primarily focused on delivering the project, pricing options for the bike shelter should have been documented in a value-for-money assessment as part of a 'robust options appraisal process', the audit said. The report also found the high cost of the shelter was due to the alignment of the project with 'the fabric of existing structures'. However, it states regardless of the reasons, a value-for-money assessment should have been carried out, alongside other lower-cost alternatives. These alternatives should have included the option of doing nothing, which was not presented to the Houses of the Oireachtas Commission, as required by the Public Spending Code. 'Approval to proceed with the project should only have been formalised when these evaluations were complete,' the audit report reads. The report also found there was some paperwork related to the bike shelter that was 'not signed or dated by the individual completing the form'. Among the recommendations from Deloitte include the overhaul of project management rules for any OPW project that costs less than €500,000, including the need for value-for-money assessments. In particular, this includes the establishment of a mechanism to 'oversee and review elective capital projects with an estimated budget of below €500K'. These mechanisms should include value-for-money assessments, project option appraisals, and expenditure monitoring. Deloitte has also recommended all cost estimates should be 'communicated to all relevant parties before elective projects are approved'. It also adds the option of doing nothing must be presented to stakeholders in advance of approval. In its response to the audit, the OPW has opted to accept all recommendations from Deloitte for future projects with the Houses of Oireachtas Commission and others.
Irish Daily Mirror
15-05-2025
- Business
- Irish Daily Mirror
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.'
Irish Independent
02-05-2025
- General
- Irish Independent
Very important jewel in North Cork's crown set for continued investment
A commitment was made in recent days for the continued investment and development of Doneraile Court and Estate and in particular the re-construction of the Orangery (Conservatory) at Doneraile House. Doneraile Court and Estate came into the care of the OPW in 1994 and over the last 30 years or so, significant investment has been made in the conservation and presentation of the estate. In 2023, Doneraile attracted over half a million visitors (523,800) to the parkland with over 9,000 ticketed visitors to the house. The estate, near the North Cork village of Doneraile, is famous for its literary and historical connections. Edmund Spenser wrote the famous poem, The Faerie Queen, while living nearby. Fine Gael TD for Cork North West John Paul O'Shea who raised the matter with the Office of Public Works (OPW) welcomed the commitment for continued investment and development of Doneraile Court and Estate. 'I am delighted to see plans are proceeding for Doneraile Court and Estate which is one of the tourism gems of North Cork. A Conservation Management Plan (CMP) has been published for Doneraile Court and Estate and this plan identifies the Conservatory (Orangery) as an important structure (built in 1825-6 and taken down in the early 1970's) as an important missing feature on the site.' Deputy O'Shea continued: 'The OPW have completed a feasibility report exploring the options for the reconstruction and potential uses for the Orangery structure to complement and enhance the current visitor experience at Doneraile. It will be fantastic to see this historical feature put back in place in Doneraile.' In recent years, the OPW has invested considerably in the restoration of Doneraile Court. In 2019, the ground floor was restored and opened to the public with the gardens opening in 2020. In 2023, the first-floor restoration was completed with the house fully opened to include improved access with a lift and a changing places facility. In 2024, works included the restoration of the gates to the Haggard and American Gardens, site access and improvement works to the Estate and new planting in the formal gardens and woodlands. ADVERTISEMENT Deputy O'Shea said the OPW is in the process of developing the Preliminary Business Case required under the Public Spending Code with a view to appointing a design team to develop a scheme to bring to planning and then follow on to construction to advance the project. 'There is huge public support out there for Doneraile Court and Estate,' said Deputy O'Shea. 'Works underway and planned for 2025 include repairs to the boundary wall, additional garden works, renewal of some of the interior exhibits and the upgrading of the public bathrooms. 'I am looking forward to seeing plans and works progress here over the year so we can make Doneraile Court and Estate more attractive that it is and to continue its popularity on the tourism stage for north Cork,' he added.
