Case Study for PPN 05/21 – Human Rights in Construction Contracts

Procurement Policy Note (PPN) 05/21 was mandated in November 2021 to incorporate Human Rights considerations into contracts when conducting a procurement process.

Construction contracts broadly fall into two categories – design and works. EA’s Construction Category Council in consultation with the Construction Employer’s Federation NI assessed the Human Rights Risk on our construction portfolio based on unique characteristics of construction industry in Northern Ireland.

Design contracts have generally been considered low risk in terms of risk to Human Rights. This is due to the relatively high level of qualification and remuneration of design professionals delivering contracts, and shorter supply chains.

Works contracts are considered medium risk due to longer and more diverse supply chains, and a historic reliance on migrant workers/foreign nationals to deliver some elements of a project.

Historically, the Northern Ireland construction industry has a good record in the protection of Human Rights. However, with recent publicised potential human rights breaches in private contract sites has highlighted that the industry and contracting authorities cannot be complacent in this vital area.

The Education Authority’s (EA’s) objective in implementing this PPN in its construction portfolio is to help prevent Human Rights violations and abuses, and to encourage suppliers to take an active role in respecting, protecting and fulfilling the Human Rights of their employees and supply chain.

In accordance with the PPN, EA assessed the level of risk involved in it’s construction portfolio as medium risk for works contracts and low risk for design contracts. Standard terms have been incorporated to ensure compliance with all appropriate legislation in respect of Human Rights.

For design contracts, consultants self-declare as part of the procurement process that they are aware of potential Human Rights issues and have policies in place to address them.

For works contracts, prior to contract award, contractors must provide an official Human Rights policy that addresses the identification and mitigation of risks.
Throughout the project, contract management provisions are in place to monitor Human Rights compliance. These include a monthly contractor’s report on Human Rights compliance as part of progress meeting updates.

While this has not been required to date, rigorous poor performance procedures are in place to ensure that, if any requirements are breached, appropriate remedies are provided.

Implementing this prudent, risk-based approach has ensured protection of Human Rights is central to the procurement of EA’s construction portfolio. Assessing works as medium risk has helped ensure no Human Rights violations have been identified during delivery of the construction portfolio. While this is encouraging, EA is not complacent in this area given the large supply chains in the construction industry and a historic reliance on migrant labour.

Decisions made in procurement processes have consequences for the Human Rights of people employed in the delivery of associated projects. By complying with this PPN, EA has ensured Human Rights are considered and protected throughout the procurement and contract management process across EA’s construction portfolio.