The Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation (DEPR) has published a number of measures aimed at accelerating infrastructure, particularly in the transport, water, wastewater and energy sectors.
Circular 25/2026 and contracting approach for critical infrastructure projects
In August 2026, the Minister published Circular 25/2025 (the Circular) which implements a number of the Actions set out in the Accelerating Infrastructure Report and Action plan and in particular, Action 25: Reform Procurement Process.
The updates to procurement requirements within the circular apply only to Exchequer funded projects designated as critical under the Critical Infrastructure Act 2026 (the Act).
To date, a total of nine projects across the transport, water and energy sectors have been designated under the Act with the intention to designate additional projects in accordance with the provisions of the Act:
Transport
- Dublin MetroLink
- Cork Area Commuter Rail Programme
- Galway City Ring Road
Water and Waste Water
- Water Supply Project for the Eastern and Midlands Region
- Greater Dublin Drainage Project
- Limerick Wastewater Treatment Plant Upgrade and Bioresource Centre
Energy
- North South 400 kv Interconnector
- Moneypoint 400 kv Series Capacitor Project
- Letterkenny 110 kv Redevelopment Project
Projects designated as critical infrastructure, such as the above, may instead select a standard form of construction or consultancy contract that is in use internationally. This may include the suite of contract forms published by the Institute of Civil Engineers – the New Engineering Contract (NEC) or those forms published by the Fédération Internationale Des Ingénieurs-Conseils (FIDIC). Projects designated as critical under the Act should be prioritised above all other projects and programmes when submitted for approval.
The waiver provided for in the Circular applies only to the choice of procurement and contracting strategy and not to the broader provisions of the CWMF which still must be followed.
The Circular sets out requirements in respect of permitted amendments to these standard contract forms, and the availability of resources and supports. Where amendments or supplementary conditions are required to the standard or core clauses of the FIDIC or NEC contracts, they must be amended using the standard optional clauses available to the chosen form of contract, and bespoke conditions should only be included where absolutely essential and where justified by the project’s or programme’s circumstances.
To implement these actions, DEPR has updated the requirements within the Government’s Infrastructure Guidelines which are overseen by DEPR (with mandatory application for all public bodies and Agencies receiving Exchequer funding) (the Infrastructure Guidelines) and within the Capital Works Management Framework (CWMF) as set out in the Circular.
Timelines
All new public investment proposals from 1 August 2026 onwards should comply with the changes outlined. For public investment proposals which are already progressing through the project expenditure lifecycle, sponsoring agencies which hold primary responsibility for evaluating, planning and managing public capital investment projects and funding departments should ensure that these comply with the updated requirements.
DEPR flags that contracting authorities should consider engaging the National Development Finance Agency (NDFA) to support timely technical reviews, process streamlining and ensure compliance with the Infrastructure Guidelines. All government departments, local authorities, the Health Service Executive, public bodies, and all bodies in receipt of government funding must comply with the obligations set out in the Infrastructure Guidelines. The Infrastructure Guidelines aim to get the best value for money for the evaluation, planning and management of public investments throughout the entire project lifecycle.
The Circular also highlights the different gateways to be followed when seeking funding approvals.
Alternative contract approach for non-critical infrastructure projects
However, for projects not designated as critical under the Act, a derogation from the Government Contracts Committee for Construction (GCCC) may be sought where the project circumstances indicate a different contractual approach may be required. This includes situations where use of early contractor/supply chain engagement may deliver better outcomes. This is to ensure that such contracts are compliant with Government policy in relation to its public sector construction procurement reform initiative, per Circular 07/10. Contracting Authorities considering applying for a derogation should contact [email protected] to commence engagement with DEPR, who provide the secretariat for the GCCC.
In publishing the Circular and its advice on Early Collaboration Contracts, DEPR has been careful to emphasise that the standard suite of public works and services contracts published under the CWMF remains the preferred approach to deliver value for money on the majority of public works projects.
Contact Us
For more information or advice on infrastructure and large scale procurement and contracts in the public and private sector, including on NEC and FIDIC contract forms, please contact Cassandra Byrne, Jarleth Heneghan, Liam McCabe or your usual William Fry contact.
