Contractor bonds delaying housing schemes
Murphy said limited access to bonds can prevent contractors from starting approved schemes. The Minister retained the bond requirement but agreed to examine the availability of bond providers, noting another department would be involved.
Is there any other way of helping certain contractors to secure bonds after a tender has been accepted by a local authority? Many of them have difficulty in obtaining a bond which would enable them to commence schemes and this adds further to the delay.
Comment on this
Delays depend to some extent on the previous record of contractors. I do not know if there are long delays in regard to this. I do not have any views at present about changing the system of requiring them to have the bond or indemnifying the council. They are obliged to do so.
Comment on this
I accept the necessity to have bonds but the agencies from which to acquire bonds are very limited. Perhaps the Minister might look at that angle of the problem.