sec.32Contract performance guarantee systems

sec.32 Contract performance guarantee systems

A department’s accountable officer or a statutory body must establish and maintain a system (a contract performance guarantee system ) for— deciding which contracts entered into by or for the accountable officer or statutory body must require the giving of a contract performance guarantee; and managing the contract performance guarantees given to the accountable officer or statutory body; and identifying, as soon as practicable, whether an approved security provider who has given a contract performance guarantee to the accountable officer or statutory body has stopped being an approved security provider. The contract performance guarantee system must, in relation to a contract for which a contract performance guarantee is given to the accountable officer or statutory body by an approved security provider, provide for— the contract to include a condition that requires the contractor to give to the accountable officer or statutory body, or arrange the giving of, either or both of the following within 30 days of the contractor receiving a notice mentioned in paragraph (b) — a contract performance guarantee in the form of a monetary security deposit; a contract performance guarantee by another approved security provider; and the accountable officer or statutory body to give to the contractor a notice stating the following if the provider stops being an approved security provider— the provider has stopped being an approved security provider; if the contract is subject to a condition mentioned in paragraph (a) —that the contractor is required to comply with the condition; and the accountable officer or statutory body to take reasonable steps to ensure that, if the contract is subject to a condition mentioned in paragraph (a) , the contractor complies with the condition. In establishing or maintaining the contract performance guarantee system, the accountable officer or statutory body must have regard to the financial accountability handbook. If the accountable officer or statutory body carries out an activity mentioned in subsection (1) or (2) , the accountable officer or statutory body must carry out the activity in accordance with the contract performance guarantee system for the department or statutory body. (sec.32-ssec.1) A department’s accountable officer or a statutory body must establish and maintain a system (a contract performance guarantee system ) for— deciding which contracts entered into by or for the accountable officer or statutory body must require the giving of a contract performance guarantee; and managing the contract performance guarantees given to the accountable officer or statutory body; and identifying, as soon as practicable, whether an approved security provider who has given a contract performance guarantee to the accountable officer or statutory body has stopped being an approved security provider. (sec.32-ssec.2) The contract performance guarantee system must, in relation to a contract for which a contract performance guarantee is given to the accountable officer or statutory body by an approved security provider, provide for— the contract to include a condition that requires the contractor to give to the accountable officer or statutory body, or arrange the giving of, either or both of the following within 30 days of the contractor receiving a notice mentioned in paragraph (b) — a contract performance guarantee in the form of a monetary security deposit; a contract performance guarantee by another approved security provider; and the accountable officer or statutory body to give to the contractor a notice stating the following if the provider stops being an approved security provider— the provider has stopped being an approved security provider; if the contract is subject to a condition mentioned in paragraph (a) —that the contractor is required to comply with the condition; and the accountable officer or statutory body to take reasonable steps to ensure that, if the contract is subject to a condition mentioned in paragraph (a) , the contractor complies with the condition. (sec.32-ssec.3) In establishing or maintaining the contract performance guarantee system, the accountable officer or statutory body must have regard to the financial accountability handbook. (sec.32-ssec.4) If the accountable officer or statutory body carries out an activity mentioned in subsection (1) or (2) , the accountable officer or statutory body must carry out the activity in accordance with the contract performance guarantee system for the department or statutory body.