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The
they estimate that, provided certain contingencies do not arise,
the cost of the work to the Colony would then be materially
less. Should, however, such contingencies arise the consequent
cost would require to be borne by the Colonial Government.
difference between the alternative offers indicates the risks
consequent upon the carrying out of work of this nature and the
alternative proposal is made with the object of enabling the
Government to take such risks rather than to pay a large amount
to the Contractors to cover contingencies which may not arise.
5.
We note Mr. Fairley suggests that the Colony should
consider the possibility of carrying out the work departmentally.
Possibly this might prove to be the cheapest method provided the
Colonial Government possess suitable plant for the purpose. If,
however, it was necessary to obtain special plant of a costly
nature for the work for which little use might subsequently be
found we doubt if departmental construction is likely to prove
less costly than Messrs: Sir W.G.Armstrong Whitworth and Company'
alternative proposal.
6.
Both tenderers state that they are unable to
agree with the whole of our General Conditionspf Contract and we
enclose a copy of a letter dated 30th September which Messrs:
Sir W.G.Armstrong Whitworth and Co. have addressed to Mr. Fairley
regarding their objections. We do not feel justified in discussing
the points raised with Messrs.Sir W. G. Armstrong Whitworth and
Company until we are assured that only their tender is likely to
prove acceptable to the Colony, but we do not doubt that the
points at issue can be amicably settled if there is any prospect
of a tender being definitely accepted. In any case should you
ultimately decide to accept a tender on a cost price plus an
addition for profit etc. it will be necessary to revise a number
the
of the conditions of/contract.
7.
We do not propose to take any further action in
this matter until we receive your instructions.
I
have, etc.