The OPW is introducing a new approach to the provision of decentralised departmental accommodation outside Dublin. It is based on two principles: that the project be accomplished by private contractors and that the building ultimately be owned by the State.

It is very much based on the public/private partnership approach being applied to the provision of State infrastructure of all kinds, according to Mr Tom Sherlock of the OPW.

While the Government puts up the money, the specialist private sector contractor undertakes to prepare the site and design and build the accommodation before handing it over to the State.

The "traditional" method for delivering decentralised office space involved designating a contractor who would design, build then lease the property to the State, typically on a 20-year buyback arrangement, Mr Sherlock explained. This does not, however, fit with the preferred policy of State ownership rather than annual rent payments, he said.

"We want to get the benefit of the private sector design and build, but we don't want to carry the long rental situation."

The new approach was based on "milestone payments", a process that mimics the typical householder building project. The State contracts to make periodic milestone payments to the contractor on the completion of given aspects of the project. When the final payment is made, the contractor's responsibility ends and the State has a completed building, ready for fitting out.

Site identification and purchase is usually the responsibility of the OPW and once selected and assured for outline approval, the project is taken over by a private contractor. As with any public/private partnership contract, companies are invited to bid for the project and make proposals. A winning tender is selected and at this stage the work is placed in the hands of the contractor who must finalise building design and planning permission and begin construction. Ultimately the company would "deliver us a finished building", Mr Sherlock said.

While the preferred option is for the Government to retain full ownership over the building, this is not cast in stone, he said. "When we get a decision on [the next round of] decentralisation and begin to look at the Government programme, we will be looking at all aspects from the traditional design, build, milestone payment and perhaps other aspects of public/private partnerships."

"Design, build and operate" could be an option, he said. Each case will be considered on its merits and the most likely situation is that a mix of approaches will be used on a case-by-case basis as appropriate.