TENDERING ON A FALLING MARKET.

Star (Christchurch), Volume XLIV, Issue 78, 1 April 1931, Page 6

TENDERING ON A FALLING MARKET.

CONTRACTOR REPLIES to union official. “It should not be overlooked that contractors always have to take the risk of a rise or fall in costs when tendering for a job,” said a building contractor to-day, in commenting on the statement made yesterday by Air E. C. Sutcliffe, secretary of the Amalgamated Carpenters’ and Joiners’ Union, regarding the effect on existing contracts of a reduction in wages. The contractor said that when wages went up the contractor had to meet the additional cost, and in the case of a reduction he was entitled to the benefit. During the past six months, contractors had been tendering on a falling market, and, that being so, it mqst be recognised that consideration was given to any reductions that might occur: The position was that tenderers knew that prices would not go up, and accordingly they worked on an exceptionally fine margin. During the war period, on the other hand, an allowance of up to 20 per cent had to be made for any increases that might occur. It was not possible to keep men at lower than the ruling rates of wages, even when exemptions were granted by the Arbitration Court. His experience in that respect was that when wages were increased he had to pay the higher rates because it was the only way to keep men on the job. The only people who showed any consideration for the builders in his * experience of rising prices were certain of the timber merchants, who continued to supply materials at the prices ruling when the contract was entered into.