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.