§ Mr. Michael Lathamasked the Secretary of State for the Environment what representations he has received from the Federation of Master Builders regarding the continued use of firm price contracts on work done under the schedule of rates of the Property Services Agency of his Department; and what reply he has sent.
§ Mr. FreesonThe Federation of Master Builders represented that it was unfair for fixed prices to apply to the two-year period maintenance contracts of the Property Services Agency, based on schedule of rates, when generally they do not apply to contracts for new works exceeding 12 months. It recognised that notice of earlier termination could be given under term contracts but suggested application of the price adjustment formula. The federation was told that the PSA has been considering the problem as a matter of urgency in order to devise a better means of adjusting rates under these period contracts.