Mr. Rostron Duckworth
asked the Minister of Health whether he will state his policy with regard to the approval or disapproval by his Department of the inclusion in contracts for public works carried out for local authorities of a clause providing for alteration in the event of a rise or fall in the cost of wages or materials?853W
§ Sir K. Wood
It is my policy to discourage the adoption by public authorities in contracts for public works of a clause providing for alteration in the event of a rise or fall in the cost of wages or materials. A provision of this character inevitably reduces the incentive to the contractor to exercise proper economy in regard to the employment of labour and purchase of materials, and its general adoption would merely encourage, at the expense of the public authorities concerned, unrestricted competition amongst contractors in securing by whatever inducement the necessary labour and materials.