Ruairi Quinn (Dublin South East, Labour)

Each main contractor that is engaged in a major school building project is required to produce a performance bond before it commences works. The bond provides security for the State if the contractor becomes insolvent and is no longer in a position to complete a contract. If such a scenario arises before the building is completed, a completion contractor can be appointed to complete the works. The performance bond covers any additional expenses incurred, up to the value of the bond. For smaller works, where grants are devolved to schools and the value of the works is less than €500,000, if a bond is not in place, the Department considers providing funding for outstanding defects on receipt of notification and appropriate supporting evidence from the school authority. In addition to the performance bond, moneys held as retention are also available to complete outstanding works within the defects period.

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