§ Mr. Beithasked the Secretary of State for the Environment whether, in view of the cash flow problems of the building industry, he will advise local authorities to give sympathetic consideration to applications for revised terms from fixed-price contractors whose materials and subcontracted costs have increased beyond what could reasonably have been anticipated
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§ Mr. FreesonLocal authorities were advised in the Department's Circular No. 91/74 of the circumstances in which the Government consider thatex-gratia payments might be appropriate to relieve any real hardship suffered by a contractor following losses due to circumstances which could not reasonably have been foreseen.
§ Mr. Beithasked the Secretary of State for the Environment (1) whether, in view of the cash flow problems of the building industry, he will issue a circular giving advice to local authorities and water authorities similar to that contained in technical memorandum QS 4/74, issued in May 1974 by his Department's Property Services Agency;
(2) whether, in view of the cash flow problems of the building industry, he will institute discussions with the appropriate professional institutes designed to secure acceptance in the private sector of the principles accepted for Government contracts and set out in technical memorandum QS 4/74 of his Department's Property Services Agency.
§ Mr. FreesonLocal authorities and water authorities were reminded about this matter in the Department's Circular No. 34/74. The National Joint Consultative Committee for Building is an appropriate body to consider the issue of guidance to the private sector about the importance of prompt payments to contractors and I shall arrange for this suggestion to be brought to its attention.