Written question asked by Karl Turner (Labour) on Monday, 13 October 2014, in the House of Commons. It was due for an answer on Thursday, 16 October 2014 (named day). It was answered by Andrew Selous (Conservative) on Tuesday, 18 November 2014 on behalf of the Ministry of Justice.

Prisons: Wrexham

Question: To ask the Secretary of State for Justice, what financial penalties would be incurred by the cancellation of the contract with Lend Lease for the construction of HM Prison Wrexham.

Answer: Lend Lease won a competition for the Design and Construction of the New Prison at Wrexham, North Wales. The Design and Construction arrangements under the Partnering Agreement with Lend Lease are divided into three separate contracts. The first contract is for the design development of the prison, the second is for pre-commencement enabling works and the third contract is for the construction of the prison. To date the first two of these contracts have been entered into and the aim is to sign the construction contract in January 2015. The forms of contract used do not include 'penalties' for early termination of the contractor's employment, however, they do require the MoJ to pay the total amount properly due to the constructor for the value of all materials, goods, equipment and any other constructor’s reasonable costs incurred prior to the cancellation of the contract, including the costs of properly protecting and securing the site following the notice of termination. The cost of early termination of any of these contracts is therefore dependant upon the timing of the issue of a termination notice.

Secondary information