HC Deb 22 May 1996 vol 278 cc300-1W
Mrs. Roche

To ask the Secretary of State for National Heritage 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 requires bonds from businesses with fewer than(a) 100, (b) 50 and (c) 20 employees. [29423]

Mr. Sproat

[holding answer 20 May 1996]: My Department and its agencies have made some use of bonds for building contracts in accordance with the advice on the use of performance bonds set out in the central unit on procurement's guidance note No. 48, "Bonds and guarantees", copies of which are available in the Libraries of both Houses. The 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. My Department has made claim against only two bonds, one in 1994–95 by the British library project for approximately £100,000 and another in 1995–96 by the Royal Parks agency for approximately £4,000.

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