The National Audit Office has been “positively impressed” by significant improvements to the Roads and Infrastructure Directorate’s operational systems, commending it for streamlining the process by which road surface defects are identified and logged.

In a follow-up to its 2011 report titled ‘Road Surface Repairs on the Arterial and Distributor Road Network’, the Auditor General, however, said it had also identified a number of concerns which “significantly undermine the directorate’s efficiency and effectiveness”.

The NAO said there was evident improvement in the traffic management system and an enhanced approach to the monitoring routine adopted for the review of works.

Referring to its concerns, the auditors said the predominant emerging one related to the issue of the directorate opting to commission works through the emergency works provision allowed under the Framework Agreement (which governs the procurement of asphalting interventions).

The mark-up permissible is significantly higher than that suggested by external consultants

While this provision required works to be carried out outside normal working hours, it also allowed for a 50 per cent mark-up on agreed prices.

In availing itself of this proviso, the directorate intended to address consistent contestations by contractors on price levels as quoted in the Framework Agreement. In addition, in using such a system, road users also benefited from reduced inconvenience since works were carried out during the night.

However, the mark-up permissible under this provision is significantly higher than that suggested by external consultants who determined fair and reasonable prices. The NAO estimated that the difference between the two came up to €400,000 for 44 contracts.

Two principal concerns recur from the 2011 audit report.  In the majority of cases, individual tenders were still attracting a single bidder each. This risked the potential economical benefits associated with competitive tendering.

It also raised concerns about the competitive behaviour of the bidders in question, the NAO said.