0003160 G.F. 316
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2
Pricing
(a) Price indications
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Within the context of the proposed contractual arrangements summarised in paragraphs 3 and 4 above, the Consortium have indicated the following prices for the lumpsum fixed price contract (figures converted from US dollars at US$1
HK$5.045):
Maximum (HK$ mn)
Best Estimate
(HK$ mn
Minimum (HK$ mn)
Proposal A
5,802
5,045
4,440
Proposal B
5,267
4,541
3,996
Proposal C
4,722
4,036
3,552
(b) Coverage of prices
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The prices indicated for Proposal A are based largely on the Consulting Engineers' design, but differ from it to the extent that:
(a)
(b)
(c)
(a)
Chater Station and the line from Chater to Admiralty have not been included;
a more sophisticated train control system has been provided for;
the Consortium propose to construct the Prince Edward/Argyle and Argyle/Waterloo sections by cut-and-cover, rather than by bored tunnel as indicated by the Consulting Engineers; (however, if ground conditions were favourable, the consortium could construct these sections by bored tunnel at no additional cost); and
a number of minor cost items have been omitted.
The prices indicated for Proposal B relate to a modified design which incorporates a number of possible economies of design, e.g. the construction of narrower stations, the supply of steel rather than aluminium coaches, the omission of air-conditioning on coaches and the supply of only 50% of the number of escalators included in the Consulting Engineers' design.
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The prices indicated for Proposal C relate to a further modified design which incorporates possible economies of design additional to those envisaged for Proposal B. These include, for example, the omission of air-conditioning from stations as well as coaches, the use of the most utilitarian station finishes and the complete omission of escalators.
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All the prices indicated include the costs of the detailed design, construction and equipment of Stages 1-4 and of project management and contract insurance (except Contractor's Third Party Liabilities insurance). The 'maximum' prices cover the Consortium's worst assumptions as regards working conditions, and include all contingencies and unforeseen circumstances (except cases of 'force majeure'). The Consortium have confirmed that the final contract price will not exceed the maximum figure for the relevant design.
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/.... (c)