§ Mr. BerryTo ask the Secretary of State for Defence what measures are being taken to ensure that sub-contractors working on the new Ministry of Defence building at Abbey Wood, Bristol are being paid on time by the main contractors and according to the amount of work executed. [15479]
§ Mr. ArbuthnotThe contractual relationship between a main contractor and his sub-contractors and suppliers are a matter for the main contractor. However, contracts for Abbey Wood construction works place an obligation on main contractors to include a term in sub-contracts which require payment to be made to suppliers or sub-contractors within a specified period not exceeding 30 days from receipt of a valid invoice as defined by the sub-contract requirement.
The overall progress on the main construction works at Abbey Wood is continuously monitored by the MOD project team and its commercial works project manager to ensure that programmed milestones—linked to payment plans set out in the respective contracts—are being met, with the achievement of agreed progress milestones triggering payment. We understand that sub-contractors and suppliers are being dealt with in accordance with the terms and conditions agreed between the parties concerned. Were this not the position, we would expect a detrimental impact on progress which would then be taken up directly with main contractors.
§ Mr. BerryTo ask the Secretary of State for Defence what estimates he has made of the cost of the work being undertaken in respect of the construction of the new MOD building at Abbey Wood, Bristol; and if he will make a statement on the extent of the overrun against the original estimate. [15480]
§ Mr. ArbuthnotThe estimated works cost of the Abbey Wood development—inclusive of site acquisition, construction, fitting out, professional works management fees and VAT—is kept under constant review and remains within the approved budget of £248.5 million at 1992 prices—£273.4 million at 1995 prices.