Minister for Transport Martin Cullen said today he would introduce fixed-price contracts on State transport projects in an effort to stop costs spiralling out of control.
Speaking at the opening of the Dundalk western bypass section of the M1 in Co Louth, Mr Cullen said he planned to set up meetings this week with the chairmen of the National Roads Authority, CIÉ and the Rail Procurement Agency to discuss fixed price contracts.
"The old style of contracts, where any additional costs fell to the taxpayer, resulted in increased and inflated outcomes," Mr Cullen said.
"We need to learn the lessons from past road projects and work to ensure that the public can have confidence in the delivery of infrastructure.
"I want to see the rules of contracting changed so that contractors bear the construction risk involved. This is to ensure that taxpayers get maximum value for their money."
The cost of Dublin's M50 motorway, which was completed in June after 17 years of construction, increased almost ninefold from first phase to last.
The first phase, which started construction in 1988, cost €6.8 million per kilometre to complete. In contrast, the final phase has cost €60 million per kilometre.
At a completion cost of €570 million, the South Eastern Motorway is more expensive than the initial €530 million cost of the Dublin Port Tunnel. The tunnel is now some €171 million over budget.
Mr Cullen said the opening of the latest stretch of the M1 will be a major benefit to the people of businesses of the northeast.
"Its delivery, five months ahead of schedule, means that road users will save up to 30 minutes on journey times and traffic logjams will be reduced.
"The completion of this stretch also means that road users on the M1 Dublin - Belfast route can travel on continuous motorway from Dublin to Ballymascanlon, a total of over 90 kilometres," the Minister said.
The new section of motorway was opened temporarily to accommodate Tyrone fans travelling to and from Croke Park.
