Question to the Department for Work and Pensions:
To ask His Majesty's Government how many penalty clauses have been enforced against suppliers of Government Major Projects Portfolio projects managed by the Department of Work and Pensions because of delays or cost overruns in the past three years, and what is the total financial value recovered.
Penalty clauses that unduly punish a contract party are unenforceable by the courts and we do not include them in our contracts. We have contract clauses negotiated that operate in good faith that will be breached if not delivered/operated in the required way. Financial recompense will be commensurate to actual loss and agreed in the contract terms. However, we do not collect, hold centrally or report data on the enforcement of such terms.