Written question asked by David Simpson (Democratic Unionist Party) on Tuesday, 6 December 2005, in the House of Commons. It was due for an answer on Thursday, 8 December 2005. It was answered by Shaun Woodward (Labour) on Tuesday, 13 December 2005 on behalf of the Northern Ireland Office.

Roads Service

Question: To ask the Secretary of State for Northern Ireland what penalty clauses are normally included as part of Roads Service contracts.

Answer: The chief executive of Roads Service (Dr. Malcolm McKibbin) has been asked to write to the hon. Gentleman in response to this question.Letter from Malcolm McKibbin, dated 13 December 2005:"You recently asked the Secretary of State for Northern Ireland a Parliamentary Question regarding what penalty clauses are normally included as part of Roads Service contracts.""I have been asked to reply as this issue falls within my responsibility as Chief Executive of Roads Service.""Penalty clauses are not included in Roads Service contracts as a means of recovering damages, as they are not enforceable in law. Where a loss is incurred through the failure of a contractor to fulfil their obligations under a contract, redress is sought through a liquidated damages clause. The amount included in a liquidated damages clause is a genuine pre-estimate, at the time of the issue of tender documents, of the loss that will be incurred in the event of a breach of contract.""I hope this information is helpful."

Secondary information