From Crisis to Completion: A Case Study of Contractor Insolvency Risk Management in Ireland’s Schools PPP Bundle 5

This research presents a detailed case study of the Irish Public-Private Partnership (PPP) Schools Bundle 5 project, focusing on the critical risk event of contractor insolvency rather than the common issue of renegotiation. The study is motivated by a significant gap in the literature regarding the successful management of contractor failure in ongoing PPP projects. While many studies document the collapse of projects following such events, this paper analyses a more positive outcome.

The research draws on a systematic review of public records, government reports, and parliamentary debates to reconstruct the events following the liquidation of the main contractor, Carillion, and its subcontractor in 2018. It details how the private consortium’s remaining partner, Dutch Infrastructure Fund (DIF), alongside the National Development Finance Agency (NDFA), successfully navigated the crisis. This involved a structured retendering process and the appointment of a replacement contractor to complete the six-school project.

A key contribution of this paper is its comparative analysis. It contrasts the Irish experience with the catastrophic failures of similar projects in the United Kingdom, such as the Royal Liverpool and Midland Metropolitan hospitals, which faced years of delays and significant public cost overruns following Carillion’s collapse. The Schools Bundle 5 case demonstrates how a robust contractual framework and the proactive role of the private partner can mitigate significant risks, leading to a timely and financially stable resolution.

The findings offer critical lessons for policymakers and practitioners, emphasizing the importance of resilient risk allocation mechanisms and effective private-sector oversight in ensuring the continuity and success of public infrastructure projects. The study concludes that while contractor insolvency is a significant threat, it does not necessarily have to lead to project failure.