:
(8)
should follow that increases in Hong Kong costs may be paid
without jeopardizing the self-liquidating nature of the MTS,
as cost of living increases would from time to time both
justify and require fare adjustments,
Alternative Three
This would be a variation of Alternative One. Under the
protection of the bid ceiling price of HK$
at the time when it becomes possible to stipulate the contract
price, we would offer the Steering Group the option of adopting
a normal unit price type contract (based on measurement of
actual quantities) for the Civil works,
Everything else would
remain equal.
The difference would be mainly that the contract price need no
longer cover physical contingencies and quantity overruns
relating to civil works, and could therefore be as low as
HK$
By that time soil information and design work would be complete
and the Steering Group, assisted by its consultants, may well
find it more attractive on the basis of facts to cover those
risks directly rather than through the Contractor. As all
this implies that the Contractor would then be willing to
relinquish the prospect of a greater profit, we would not wish
the credibility of our proposal to be undermined.
It rests on