§ Mr. Matthew TaylorTo ask the Secretary of State for the Environment, Transport and the Regions what standard penalty clauses are included in private finance initiative contracts for roads; and how many of these have been invoked. [128589]
§ Mr. HillPenalties in contracts are not enforceable at law. My Department's privately financed contracts for roads include provisions for ensuring proper performance. In all these contracts performance defaults may lead to the accumulation of points which, through a hierarchical structure, could lead to increased monitoring at contractor expense and ultimately, to contract termination. A number of such points have been awarded on seven of the eight privately financed trunk road contracts in England.