Written answers

Thursday, 4 July 2013

Department of Health

Public Procurement Regulations

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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267. To ask the Minister for Health 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. [32721/13]

Photo of James ReillyJames Reilly (Dublin North, Fine Gael)
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An insurance bond is an important condition and best practice in any construction contract. The purpose of an insurance bond is to ensure that a construction project can be delivered to the satisfaction of the contracting authority in the event that the contractor is not in a position to complete the project. As all parties to the bond are bound by its conditions, all have its legal protections.

Currently there is a commitment by the Health Research Board (HRB), an agency which is directly funded by my Department, to part fund one project which would require a insurance bond. The HRB will not be a party to the contract. This project will deliver a Clinical Research Facility to be constructed on the Galway University Hospital campus.

As your question is more appropriate to the Health Service Executive which is responsible for the delivery of health care infrastructure, it has been referred to the Executive for direct reply.

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