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Government will, so to speak, not know the existence of the said firm of Engineers. The Director of Public Works will retain his position of responsibility as regards the design of the works; the firm acting as his assistant. When the design and estimate is sanctioned by Government, then contracts will be let, or other arrangements made for the execution of the works, according to the usual routine of the Public Works Department. Work being commenced, the firm will supervise its execution, again under the general direction of the Director of Public Works.
I see no reason why this arrangement should not act well. I know nothing concerning Messrs Denison & Ram. It is evident however that Mr Ormsby relies mainly on Mr Gibbs, who whilst a member of the Public Works Staff, carried out, under Mr Cooper and Mr Ormsby, works of similar character, in a satisfactory manner; and who was engaged on the Kowloon Works, in the preliminary stage; and concerning whom I recently received a favourable letter from Mr Cooper.
The remuneration of the firm, with respect to the services mentioned, is to be calculated at a certain percentage on the cost of the works.
I am of opinion however that it would be far better to agree upon a fixed sum, so much to be paid on approval of plans and estimates, and so much paid by instalments from year to year, for the supervision of construction. The payment of Engineers by a percentage on the cost of the works designed and constructed under their supervision, though usual, is I think objectionable. It deprives the Engineer of any incentive to steady economy. If he spends time and thought in considering the design, with a view of economy, he is merely reducing his remuneration, and incurring moreover extra expense.
In agreeing with the firm as to their remuneration, it
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must