Date:

26.11.86

8.30 12.15 p.m.

Time:

Reporter:

MEP

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MR LEE:

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MR CHEONG:

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D of Ar. S:

MR CHEONG:

MR CHEONG:

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a lack of detailed study. for that? Is it normally

D of Ar. S:

It depends on the project.

Thank you.

Was it an in-house job?

It was an in-house job.

So there was no consultants involved.

No consultants involved.

You mentioned Mr Director that it was

Any particular mitigating circumstances the case in that particular period?

Yes and no. It depends on the complexity.

In some cases we have to work to a

programme dictated to us. In some cases there are simple projects which we don't meet with this kind of problem, but in this particular case, it is a post-tensioning structure and a lot of design would have to be done during the progress of the construction. In this area I myself, it is not 100% sure what we should do in the future. I mean, design as you build or finish your design before you build. There are pros

and cons, because the longer you delay your start -- that means the start I am talking about the start, you are running 25 into escalation costs at the time of tendering. Right.

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So you will

is the true

and the contractor

be starting with a contract cost that much more plus whatever the period 27 it is, so called prolongation claim as it were, is really something 28 that one has to look at in the total perspective. First, the total 29 time required for the construction after extension, period regardless of whether you foresee it or not, would have priced it accordingly. In other words, they price their time and so on. Had we say, this contract would be four and something years instead of three or two and something years, and if we want to 34 complete the detailed design before we start, then probably the project

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would be delayed for two years, eighteen months, two years. Even then there are details which still need to be sorted out at the

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