The Construction Group is increasingly concerned about what appears to be a tendency of many government departments and agencies in Northern Ireland towards a blanket requirement for unlimited liability in government contracts.
The Office of Government Commerce has previously noted a similar tendency to insist on unlimited liability and it had remarked that this was likely to have had an adverse impact on competition and value for money where, for example, suppliers have refused to take part or where tender prices have been increased to compensate for the insurance costs of meeting unlimited liability.
The OGC has stated:
“Decisions on liability remain the responsibility of the individual Contracting Authority, in the light of the specific circumstances; however, in the vast majority of cases liability will be limited to some extent.”
Colm Lavery, Head of the NI Construction Group explains in detail. Members' views and input to the discussion are welcomed.