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CONFIDENTIAL COMMERCIAL IN CONFIDENCE
CONFIDENTIAL
COMMERCIAL IN CONFIDENCE
FM HONG KONG
TO PRIORITY FCO
TELNO 3358
OF 15091OZ NOVEMBER 90
PERSONAL FOR MCLAREN, DUSS, FROM GOVERNOR
PADS: OPPORTUNITIES FOR BRITISH FIRMS
TOP COPY Q DIST?
(244
074525
MDLIAN 7150
HKC 182 12
20
1. WHEN YOU WERE IN HONG KONG TWO WEEKS AGO, YOU TOLD ME THAT PETER HEAP HAD MENTIONED TO YOU COMPLAINTS FROM KIER ABOUT NOT BEING SHORT-LISTED FOR THE ADVANCE WORKS CONTRACT FOR THE NEW AIRPORT AND WERE LIKELY TO COMPLAIN ABOUT THIS.
2. I HAVE LOOKED INTO THIS. AS YOU WILL KNOW, OUR PROCEDURES FOR ASSESSING TENDERS, OR IN THIS CASE DRAWING UP A SHORT-LIST OF APPROVED CONTRACTORS, ARE BOTH EXTREMELY THOROUGH AND ALSO MECHANICAL. WHAT HAPPENED IN THIS CASE WAS THAT AN ASSESSMENT BOARD WAS SET UP WITH REPRESENTATIVES FROM THE CIVIL ENGINEERING SERVICES DEPARTMENT, THE CIVIL AVIATION DEPARTMENT AND THE PROVISIONAL AIRPORT AUTHORITY. WITH THE APPROVAL OF THE CENTRAL TENDER BOARD, THE 14 FIRMS WHICH SUBMITTED PRE-QUALIFICATION DOCUMENTS WERE ASSESSED ON SIX CRITERIA : EXPERIENCE OF SIMILAR CONTRACTS IN HONG KONG, RECORD OF COMPLETION OF SUCH CONTRACTS ON TIME, EXPERIENCE AND AVAILABILITY OF SUITABLE STAFF, AVAILABILITY OF SUITABLE PLANT, VARIOUS ASPECTS OF THEIR PROPOSALS FOR THIS PARTICULAR CONTRACT AND THEIR CLAIMS HISTORY. A MINIMUM GRADING OF 650 MARKS, OUT OF A TOTAL OF 1200, WAS REQUIRED FOR SELECTION.
-M
3. FRANKIE KIER KIER JOINT VENTURE CAME EIGHTH ON THE LIST WITH 578 POINTS. IT SCORED WELL ON PREVIOUS EXPERIENCE BUT WAS MARKED DOWN ON ITS RECORD OF COMPLETION, THE LACK OF A FIRM COMMITMENT OF PLANT, ITS ABILITY TO MOBILISE QUICKLY AND ITS PAST CLAIMS HISTORY.
4. AS YOU KNOW, ANOTHER BRITISH FIRM, GAMMON-COSTAIN JOINT VENTURE, WAS SUBJECTED TO THE SAME ASSESSMENT AND WAS INCLUDED ON THE SHORT-LIST.
5. HAVING LOOKED INTO THE PAPERS, I HAVE NO/NO DOUBT THAT THE SYSTEM USED WAS A FAIR ONE AND THAT THE ASSESSMENTS WERE MADE
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CONFIDENTIAL COMMERCIAL IN CONFIDENCE