ÇONFIDENTAL
HDN/SR
30th August, 1973.
HONG KONG MASS TRANSIT PROJECT
DRAFT PRESENTATION OF CIVIL ENGINEERING CONSORTIUM FOR MEETING WITH STEERING GROUP 30th August, 1973.
1.
The Civil Consortium has carefully considered the Steering
Group's letter of 1st August, 1973, and has come to the
conclusion that it cannot accept a ceiling price for this
project.
2.
Factors which can affect the final cost to the Client of
civil engineering work include the following :
First
Second
Changes in quantities of the work.
Variations in the work.
Third
"Unforeseen Circumstances."
Fourth
Escalation of costs.
Most civil engineering contracts attempt to cover these
aspects.
FIDIC contracts (and the Hong Kong Government's form of
contract for civil engineering work) are based on the
following principles:
First
That all quantities shown in the
Bills of Quantities are subject to
remeasurement after the work is done.
The Contractor is paid for the work
actually done rather than that
originally billed.
.../Contimed
Annex B