Éamon Ó Cuív (Galway West, Fianna Fail)
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228. To ask the Minister for Defence the number of projects that were approved funding by his Department conditional on a bond being produced from a builder; the amount of the default by builders where such bonds were in place; the amount recovered through the use of bonds in such cases; and if he will make a statement on the matter. [32716/13]

Alan Shatter (Dublin South, Fine Gael)
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Under public sector procurement rules, performance bonds are generally sought by my Department for all construction contracts to be placed with a value in excess of €500,000 (including VAT). Also under the procurement rules, my Department may require a performance bond in respect of construction contracts below the threshold, if it is envisaged that there would be a significant risk if such a bond were not in place.

In recent years, due to decreasing capital budgets, my Department has to a greater extent directed the limited resources available under the building capital programme towards projects valued below the €500k threshold.

In the five year period to end 2012, a total of 17 construction contracts, which exceeded the €500k threshold, were placed by my Department and a performance bond was obtained from the contractor in each instance. In the same five year period, my Department has sought performance bonds in respect of one contract valued below the threshold. As part of the 2013 capital building programme, my Department is in the process of placing further contracts which will also require such bonds to be provided.

No instance of builder default, requiring recovery under a performance bond, has occurred.