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Housing (Fixed-Price Contracts)

Volume 832: debated on Wednesday 8 March 1972

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asked the Secretary of State for the Environment if he will make a statement on the effect of his Department's policy to prevent the inflation of building costs by giving instructions to local housing authorities to arrange fixed-price contracts for the building of houses.

I consider that the Government's policy of inviting firm price tenders for all thoroughly pre-planned contracts of not more than two years' duration—which local authorities have been asked to follow—has in general had a restraining influence on housing tender prices.

The present position as regards local authority schemes finally approved for grant purposes is as follows: