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Building Contracts

Volume 809: debated on Tuesday 12 January 1971

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asked the Secretary of State for the Environment what is the value of sums held under the liability defects clause inserted into building contracts in respect of local government housing.

I regret that this information is not available. The attention of local authorities was, however, drawn in Circular 79/67 to the fact that the percentages in the R.I.B.A. form of contract are recommended maxima for retention moneys, and that they were free to agree to lower percentages if they wished. They were recommended to keep this possibility well in mind.

asked the Secretary of State for the Environment what is the average time for final settlement of accounts in respect of local authority building contracts from the time of completion of building.

I regret that this information is not available. Local authorities were reminded in M.H.L.G. Circulars 79/67 and 35/69 of the need for prompt payments.