Builders Apprehensive Of Effects Of Price-Cutting

Press, Volume XCV, Issue 28253, 15 April 1957, Page 8

Builders Apprehensive Of Effects Of Price-Cutting

(New Zealand Press Association)

AUCKLAND, April 14. The Auckland Master Builders’

Association is alarmed at the trend to uneconomic prices in tenders, says a statement issued yesterday by the president, Mr P. L. Shipman. , Uneconomic prices could lead to unfair tendering practices and these could result in considerable losses or a lowering of the standard of workmanship, says the statement. Agreeing that “silly” tendering was occurring, the statement says that since the lifting of controls, considerably more work had been available, particularly in the commercial field, and if this trend continued, there should be few builders going short of work. “But. in spite of this improvement, there are still some who want to take all the contracts they can get regardless of cost. “This can only have one result. •Eut. in the meantime, others are prevented from obtaining work at economic prices. “Present keen tendering shows that builders must improve efficiency and services and do all they can to reduce the costs which lie within their control,” the statement says. “The Government, and builders’ clients, naturally wish prices to be as low as possible, but providing satisfactory service is given, they do not expect builders to

work at a loss. In far 100 many cases, this is what is happening “As a builders’ organisation wt fully subscribe to the principH of competitive tendering. But while fair tendering is good, wt are alarmed at the trend to uneconomic prices, which can lea* to unfair tendering practices. Thi» could result in considerable loss® or a lowering of the standard o' workmanship.”