BUILDING INDUSTRY

Nelson Evening Mail, Volume 78, 29 September 1943, Page 2

BUILDING INDUSTRY

SYSTEM OF CONTRACTING “INCORRECT AND MISLEADING STATEMENTS” Christchurch, Sept. 2b. Recent statements by election candidates and others concerning the system of building construction contracting were described to-day by Mr C. S.. Luney, president of the New Zealand Builders’ and Contractors’ Association, as incorrect and misleading. The association, he said, had authorised him to make a reply to these statements, which implied that huge profits had been made by builders and which gave the public an entirely distorted view of the position. The most recent statement was made by J. A. Nash, chairman, at a meeting of the Palmerston North Hospital Board, who said it was time there was a change from the schedule system of building. At this meeting it was stated that the estimated cost of an ambulance building was £4OOO, but under the schedule system it had actually cost £6OOO. The truth was that if buildings had not been erected under the master schedule on the unit price basis, the cost would have been much greater, said Mr Luney. “Had not the master schedule or unit price system, been in operation during the major portion of the defence works programme the cost of opertions would have been much greater,” he continued. “The schedule presented an orderly system with a reasonable return to the builder, and notwithstanding all the difficulties that had to be met becaus eof the urgency of the work, these were overcome and the work completed with credit to the Commissioner of Works. “Statements have been made and published that builders have been paid for .their mistakes. Such states ments are incorrect,” Mr Luney said. “If a bujlder is paid under the schedule for y fie work he performs he canclaim payment for alterations to his work, as such are not provided for in the schedule. On the other hand, it is believed that many structures have been built, altered and pulled down and removed because of changing war conditions and the requirements of the services, but not because of mistakes by builders. Such allegations should not be laid at the door of the builder, who is paid only for the work he performs “Before payment could be made to builders for alleged mistakes it would be necessary to have the payment on the cost plus basis. Such incorrect statements cast a most undeserved slur on the building industry, which came forward and threw in its full weight with the Government to produce the necessary deience and other essential buildings required in the Dominion.” —P.A.