§ Mr. BeithTo ask the Prime Minister if he will name the consultancy to which he referred in his oral answer to the right hon. Member for Yeovil (Mr. Ashdown),Official Report, column 140, on 7 March as having achieved savings of tens of millions of pounds; and what were the savings and consultancy fees involved. [13241]
§ The Prime MinisterThe example related to a Welsh Office roads project. On one particular five year project the final certificate for the main contract was substantially greater than the original tender price because of the effects of inflation and unforseen conditions encountered during construction. A consultant quantity surveying firm was employed in assisting departmental staff to consider the appropriate price for the overall contract. This work cost around £50,000, but the advice helped to inform the negotiations with the contractor, which led to a settlement £80 million less than the contractor's claim.