CIF: Fixed price tenders cost taxpayers more
The construction industry has said that the Government's decision to seek fixed price tenders for all public projects may end up costing the taxpayer more.
The Government has decided to seek a lump sum payment agreed in advance for all major projects, to ensure that they do not run over budget or over time.
Don O'Sullivan of the Construction Industry Federation said that transferring the risk to the contractor might not translate into cheaper prices, as builders must take account of every possible contingency in setting their price, including those that may or may not occur.
