§ Mrs. RocheTo ask the Secretary of State for Education and Employment what is her Department's policy on the use of performance bonds; in what circumstances they are used; what was the total sum paid by bond in each of the last five years; and if her Department required bonds from businesses with under(a) 100, (b) 50 and (c) 20 employees. [29418]
§ Mr. Robin SquireAdvice on the use of performance bonds is set out in the central unit on procurement's guidance note No. 48, "Bonds and Guarantees", copies of which are available in the Library. This guidance makes it clear that bonds are not always necessary and are no substitute for considered judgments about the risks of a particular contract and the capabilities and financial resources of the available contractor. These factors will vary for each contract independent of the size of the contractor.