Government Departments: Procurement

(asked on )

Question to the Ministry of Justice:

To ask the Secretary of State for Justice, pursuant to the Answer of 21 February 2018 to Question 127748, on Amey and Carillion, how many times repayments were made by a contractor to the Department when a defect of contract was identified in the financial year 2016-17.


Answered by
 Portrait
Rory Stewart
This question was answered on 5th March 2018

The Department doesn’t record how many times repayments were made by a contractor to the Department when a defect of contract was identified. Following a defect additional costs are incurred by the contractor to remedy the defect without any additional charge to the Department.

In the majority of cases Amey and Carillion correct the defect in accordance with the contract and therefore no repayment amount is due.

For the duration of their contracts, Carillion have incurred £4,057,543 in Financial Remedies and Amey have incurred £2,176,592 in financial remedies. Financial remedies are imposed under the agreed Payment Mechanism System when the Key Performance Scores are below the required level.

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