CONFIDENTIAL
Annex A
PROPOSED RESPONSE BY THE M & E SUPPLIER TO MR.
HADDON-CAVE'S LETTER OF 1ST AUGUST 1973
The Chairman has said that the response to the requirements
listed under paragraph 4(a) to (e) on page 2 of your letter
of 1st August will differ in some important respects as between
Civil Construction work and M & E manufacture installation and
commissioning. My purpose is to give you as clear and as short
a response as possible from the M & E side of the British Group
to the requirements referred to above,
Ceiling Price
In our proposals of May 1973 and in discussions with you in June
we stated that we would quote you firm prices for the supply
installation and commissioning of the total M & E supply subject
to availability of specification, your acceptance of an agreed
international escalation formula and acceptable Contract
Conditions. This offer still stands, However the acceptance
by us of a predetermined ceiling price before the M & E design
is completed or in some cases even started, ie, Ventilation, as
a criterion against which we could qualify for the contract or
be disqualified if we don't meet it, is only possible if the
en suclerable CONSIDERABLYSteering Group accept it flexibility in design whereby
quality and quantity of supply can be adjusted to meet such a
predetermined firm price figure, While we do not know the
proportion of the HK$5,000M attributable to M & E we would
question the relevance at this stage of any precise ceiling
figure calculated from an assessment of the Consultants prices
before the completion of the detailed design of the M & E
system,
:
Į