Building Contracts

Oral Answers to Questions — Environment – in the House of Commons at 12:00 am on 28th July 1971.

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Photo of Mr Peter Trew Mr Peter Trew , Dartford 12:00 am, 28th July 1971

asked the Secretary of State for the Environment whether he will now permit some provision in fixed-price building contracts to compensate contractors for unforeseeable and disproportionate increases in the costs of key materials.

Photo of Mr Peter Trew Mr Peter Trew , Dartford

Would my right hon. Friend consider that if he were to relieve builders of the more extreme risks of firm price tendering in the limited way which I suggest he would almost certainly get keener tender prices and save the Exchequer money?

Photo of Mr Julian Amery Mr Julian Amery , Brighton, Pavilion

I have been carefully studying my hon. Friend's suggestions and several others which have been put to us. We still see no reason to vary our present policy, but, as I have assured my hon. Friend previously, we are keeping this matter constantly under review.