(4)
Since the prices given below are based on those ruling at
30th June, 1973 we have started applying this system from that. date, and the escalation included has been based on uniform rates
of 10% per year for both materials and labour in Europe and Hong Kong. We must also point out that the prices are based on the fundamental design concepts chosen by your Consultants and on the assumption that it will be feasible to construct the Works according to such
concepts.
Alternative One
In connection with this alternative we now bid a ceiling price of
HK$5,876m.
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 being developed is finalised and turned over to us. 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
This could
in respect of such a contract price, but we would expect it to be of
the order of HK$4,000m.
This would represent the sum of several lump sum prices, respectively" for the Civil works and for the complete M & E works and supplies.
The lump sum contract prices are to include provisions for
adverse physical conditions and quantity overruns.
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