(5)
While this ceiling price would remain in force for the life of
the contract, it would not necessarily be the final contract
price. The contract price would be determined after the soil
surveys now under way are completed and the design information
This being developed is finalised and turned over to us.
could be by the middle of 1974, and may well represent the
final stage of negotiations. We are not at this time able to
make any commitment in respect of such a contract price, but
we would expect it to be of the order of HK$
This would represent the sum of several lump sum prices,
respectively for the Civil works and for the complete & E
works and supplies. The lump sum contract prices are to
include provisions for adverse physical conditions and quantity
overruns. They would not include allowances to cover
escalation, and escalation would accrue based on formulae to
be negotiated and on actual rates of increase of costs and
prices. The ceiling price is based on the assumption of
annual increases as follows:
Civil works:
European labour
European materials...
Hong Kong labour
Hong Kong materials
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