§ Mrs. RocheTo ask the Secretary of State for Health what is his 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 his Department requires bonds from businesses with fewer than(a) 100, (b) 50 and (c) 20 employees. [29421]
§ Mr. HoramThe Department has not required any performance bonds in the last five years. Advice 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 makes it clear that a performance bond is no substitute for considered judgments about the risks attached to a particular contract and the capabilities and financial resources of the available contractors. These judgments apply, irrespective of the size of the contractor.