A new cross-Border dual carriageway initiated by Minister for Transport Martin Cullen will use a "target pricing" contract, yet to be used for major roads in the Republic.
Worth €121.9 million, the contract includes an estimate of actual costs, plus overheads and profit for the contractor, Siac Ferrovial. However the company has been guaranteed a share of any savings generated should it bring in the construction cost below target. Commissioning body, the National Roads Authority, which is also acting for the Northern Ireland Roads Service, would recoup the remainder of the savings.
Where the final cost is higher than the target cost, the contractor is obliged to make a financial contribution to the client for the overspend.
The cross-Border route from north of Dundalk to the Newry bypass in Co Down is about 14 km, of which 9.4 km is in Louth and 4.6 km in Down.
Mr Cullen said yesterday at a ceremony in Co Louth: "We need ... to adapt our approach in the interests of ensuring that we get maximum value from the investment that is taxpayers' money."
The project extends from near the Ballymascanlan roundabout north of Dundalk, across the Border finishing at the Clohogue roundabout, south of Newry. It will link the A1 Newry bypass with the M1 Dundalk western bypass, which is under construction. It is expected to be completed in 2007.
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