HC Deb 15 May 1956 vol 552 cc1819-20
39. Captain Duncan

asked the Minister of Works to make a statement about the possibility of returning to fixed price tendering in Government building contracts.

Mr. Buchan-Hepburn

I have had discussions about this with representatives of the National Federation of Building Trades Employers, the Federation of Civil Engineering Contractors and representatives of the building and civil engineering trades operatives: and explained that arising out of the Government's wish to move towards a return to fixed price tendering it had been decided as an experiment to invite tenders on a fixed price basis for selected projects of values not exceeding £100,000 for which my own Department is responsible.

I feel sure, in view of the general advantages to be gained by all concerned, that I shall have, in this experiment the good will of the industries concerned.

Captain Duncan

While welcoming that as a start may I ask my right hon. Friend whether he is aware that it will be very welcome in Scotland, where fixed price tendering for building contracts has been the case for a long time? To what extent will he extend this practice to other Departments in Scotland, and in England as well?

Mr. Buchan-Hepburn

As regards Government Departments in general, I only wish to say at this stage that if a good start is made I hope that the practice will be extended to other Departments.

Mr. Stokes

Why does the Minister suggest, as I understood his Answer, that there should any longer be any limit to the size of a fixed price tender? Is he aware that in the export market we all have to tender for fixed prices; why should we not have to do so at home?

Mr. Buchan-Hepburn

I hope that in due course we shall get back to that, but naturally I have had to take account of opinion in the industries concerned. This is a start and an experiment; there is no reason why it should not be extended as we go on.

Mr. McInnes

Does the Minister intend also to include in the tenders the appropriate penalty clauses?

Mr. Buchan-Hepburn

Yes, Sir; I think that will be the case.