7
SECRET
Government's Requirement
4
Present Indications (se at 5th December 1973)
Japanese
(a) There should preferably be no
Yes
'unforeseen' circumstances' clause: if there has to be one, claims must be limited to a pre-agreed maximum (cf. II(f) above).
Anglo-Italian
Yes
H.K. Metro Constructors
Yes
(e) The consortium must state a ceiling
or maximum price for the project which will not be exceeded in any circumstances
Yes
Yes (but see (g)
Yes (but see (g) below)
(f) The ceiling contract price (adjusted and Yes
escalated) must be below $5,000 million (Otherwise, in the Steering Group's view, the project is not viable).
below
No
No
(g)
Cases of "force majeure" must be clearly defined and limited,
Yes
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Yes cost escala- tion over 10% per annum to be regard- ed as "force majeurd'
Yes
cost escalation
over an undefined threshold to be regarded
as force majeure"
IV.
Payment Terms
(a) Exact payment terms required by the
Yes
Yes
Yes
consortium must be defined.
(b) Payments, once made, must not be
subject to further escalation
Yes
Yes
Yes