HC Deb 21 January 2003 vol 398 cc209-10W
Mr. Duncan

To ask the Secretary of State for Defence what procedures are in place for evaluating the financial stability of contractors working on behalf of the RAF. [88641]

Mr. Ingram

Works requirements are advertised in the Ministry of Defence Contracts Bulletin, and where appropriate, the Official Journal of the European Community. The adverts request that companies wishing to express an interest in tendering submit specific details to demonstrate their financial standing. This will normally be confirmation of the firms registration on Construction Line (a database jointly maintained by Department of Trade & Industry and Capita on behalf of all Government Departmens), details of a companies registration with an official list maintained by another Member State, or a statement of the firms overall turnover and turnover on construction works over the last three years.

Tender lists are thus drawn up using contractors of proven and established financial health, workload and performance.

The financial standing of contractors is regularly monitored and vetting is carried out where appropriate.

As a result of signs that the company might be in trouble the financial standing of Inframan Ltd was under review just prior to the company going into administration on 12 December 2002

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