§ Mr. GrayTo ask the Secretary of State for Transport, Local Government and the Regions how many contracts his Department has with consultants; what level of professional indemnity insurance is standard in contracts with small consultants; whether he can make exceptions to the level of professional indemnity insurance; and what recent discussions he has had with other Government Departments about the level of professional indemnity insurance. [50837]
§ Dr. WhiteheadI am unable to give the hon. Member the answer to the first part of this question as this information is not centrally held, and can be provided only at disproportionate cost.
DTLR's contracts require contractors (including consultants) to take out and maintain such insurance as is necessary to cover their liabilities under the contract. The Department has been involved in interdepartmental 1082W discussions with the Office of Government Commerce (OGC), who issued guidance in April 2001 to all Departments. The guidance encouraged a more flexible approach to contractors' (including consultants) total liability when undertaking Government contracts. DTLR has adopted this approach and either sets a realistic cap on liability (relative to the risks involved) when inviting tenders or is prepared to consider caps proposed by tenderers.