§ 39. Sir A. Bossomasked the Minister of Works whether he will make a statement regarding tenders for Government and other building contracts.
§ Mr. Molson:My predecessor announced in a reply to my hon. and gallant Friend the Member for South Angus (Captain Duncan) on 15th May, 1956, that my Department was to carry out an experiment in inviting tenders on a fixed price basis, that is to say without the inclusion of cost variation clauses for labour and materials, for selected projects of values not exceeding £100,000. This experiment has been successful, and I have discussed the matter with representatives of the building and civil engineering industries.
The Government have now decided that in future all Government Departments shall invite tenders on a fixed price basis for all works of building and civil engineering, irrespective of size, provided that they have been thoroughly planned in advance and that the estimated contract period is not more than two years. Local authorities and the nationalised industries will be invited by those of my right hon. Friends concerned to adopt a similar policy. The Government hope that these steps will be a real contribution to the stabilisation of costs and prices.