§ 116. Mr. Chichester-Clarkasked the Secretary of State for the Environment what is his policy regarding the negotiations of firm prices by component suppliers of his Department's Method of Building; for what length of time the prices are required to be firm and how this differs from the length of time required of building contractors in regard to their tenders.
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§ Mr. AmeryBuilding projects where the construction period exceeds two years are arranged on a variation of price basis, and fluctuations are allowed from the date of commencement of the contract. The agreements with the Method of Building component suppliers will require firms to make deliveries over a period of up to five years.
It is therefore equitable that the agreements for components should be subject to price variation.