Annex D
HONG KONG MASS TRANSIT RAILWAY SYSTEM
PROPOSALS FOR A FORM OF CONTRACT FOR THE CIVIL ENGINEERING FORK
G
2.
In our Assessment of May 1973 contained in Addendum As
to the British Group's Froposals, we have shown in
paragraph 1.2.10 that if construction is to begin early
In 1974 it would be necessary for the Consortium to have
a Letter of Intent enabling it to incur expenditure by
Esp October 1973 and that while it will not be possible by
phis date to conclude negotiations on prices, they could
10 started immediately, be well advanced with a view to
completion and the signing of a firm contract by the
beginning of 1974. We proposed that this negotiates
contract should be based on all information available and
should recognise the great difficulties and uncertainties
which apply to the civil engineering work and should ensure
that the Government would benefit from Lajor sevings
at the same time providing for some reasonable limitazion
on the Consortium's overall risk?
We have giver, careful consideration to a variety of forms
of contract which might be employed and our conclusion is
that the target contracs will best se the interesse c
the Hong Kong Government and of the Conserviur.
The parges
type of gouprect is designed to deal with the situation
where the work is of such magnitude (or cannot be defined
quem to be.sively with sufficiens accuracy at the tender stage)
thet e. standard re-measured contract is unsuitable both