A
SECRET
Government's Requirement
- 4-
Present Indications (as at 5th December 1973)
0003160 G.F. 316
Japanese
(a) There should preferably be no
'unforeseen' circumstances' clause: if there has to be one, claims must be limited to a pre-agreed maximum (cf. II(f) above).
Yes
Anglo-Italian
Yes
H.K. Metro Constructors
Yes
(e)
The consortium must state a ceiling
Yes
Yes (but see (g)
or maximum price for the project which
below
Yes (but see (g) below)
will not be exceeded in any circumstances.
No
SECRET
Yes cost escala-
tion over 10% per annum to be regard- ed as "force majeure'
Yes
cost escalation
over an undefined
threshold to be regarded as force majeure"
(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).
(g) Cases of "force majeure" must be clearly
defined and limited.
Yes
No
IV.
Payment Terms
Yes
Yes
(a)
Exact payment terms required by the consortium must be defined.
Yes
Yes
(b) Payments, once made, must not be
subject to further escalation
Yes
Yes