With slightly over 100 applicants expected to be successful with an application to the first tranche of Tier 2 of the Farm Business Improvement Scheme (FBIS), it is understood that more than half have now received letters of offer from DAERA.

However, many of those letters of offer have come with a surprise in the form of a requirement for farmers to engage an engineer to manage the tendering for construction work, as well as the implementation of the project. Under the scheme, 40% grant is available for projects costing over £30,000, to a maximum grant of £250,000.

“Tendering is not our normal course of work. It is usually done by an architect. It would seem that the engineers have been ‘signed up’ to carrying out this work without any consultation or prior warning,” commented a local engineer.

He maintained that a number of colleagues in the profession, already busy with other projects, have questioned whether they want to be involved in the scheme, given the workload involved in evaluating tenders, and the need to avoid any legal dispute. He also pointed to concerns about just how the successful contractor is finally chosen.

That is done after an ‘‘open tender process’’ where the tender must be advertised in a regional daily newspaper. The engineer will then evaluate the bids made by various construction companies, and make a recommendation to the farmer on the best course of action to follow.

Final say

However, the farmer has the final say, and can choose whatever quote they want, except that the grant to be claimed is then on the basis of the lowest tender quote received.

“The open tender process is farcical in that the engineer will be paid grant-aided money to evaluate tenders, while in most cases the farmer has no intention of using any other contractor other than their preferred one,” commented the source.

He maintained that there is also a risk that a rival company could submit a tender at a significantly lower price, safe in the knowledge that they will not get the work, but in order to drive down the amount of grant payable to the farmer.

Tier 2 letters of offer issued

Extra £400,000 made available for Tier 1 grant in NI