- Danuta Käo cum a
(7)
Civil works:
Labour
10
Materials
%
M & E:
Labour
%
Materials
.%
Annual increases beyond these levels in European escalation
(during negotiation a further distinction would have to be
agreed between Italian and British parameters and related
contract price percentages) are to be construed as events of
force majeure and paid in addition to the contract price.
Other events of force majeure also are to involve payment in
addition to the contract price.
% of the contract price, or HK$
represents the HK dollar part of the contract (Hong Kong labour
and materials payable in Hong Kong dollars). This portion of
the contract price contains no allowance for escalation and
the price bid for Alternative Two is conditional upon agreement
to escalate such portion of the contract price, without limit,"
with the variations of an index to be negotiated. The index
should be meaningful in respect of the cost of living, as
well as of the cost of this type of project construction, in
Hong Kong.
Our thinking in making this proposal is that the Government is
better able to evaluate, and to some extent control, the
oscillations of costs in Hong Kong. More importantly, inasmuch
as the logic of requesting a fixed ceiling price rests on the
need to preserve the adequacy of the planned fare system, it
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