1941-09-11 — Page 6

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THE CHINA MAIL, SEPTEMBER. 11, 1941.

TUNNEL CONTRACT

firmed these prices and told you quently paid for the work on

correct?

Yes.

the rate of cost plus 10%..

Let's have more about this to get on with the job. Is that cost plus basis? We were paid at estimate first I have the docti- ments here. (Witness, then pro- duced the papers),

That is submitted to the Exécu¬ tive Engineer, Waterworks?--Yes, And you submitted prices for tunnelling work in Hong Kong. or Kowloon, Is that correct? Yes.

Did Mr. Bishop ask you to sub- mit prices for work in Hong Kong?-No sir.

Then why did you submit ppices for work in Hong Kong? Be- cause at first we did not know which side we had to work on, in Hong Kong or Kowloon,

What did Mr. Bishop say?- did not speak to Mr. Bishop.

What did Mr. Bishop tell your foki? I cannot remember now.

No Experience..

Did you do the job? started the work.

Then what happened? carried on,

We

Perhaps you can tell the Com- mission how you came to have We the terms. varied by Government? Witness: began to explain that had the tunnelling been extended beyond 200 feet it would be cheap- Paymenter on a cost plus basis than at the was based on what we paid in original terms of the contract: expenditure plus 10%.

At those prices?

At what prices?

No.

old you receive anything in writing from the, P.W.D. vary: Ing the terms of that contract?

No.

Voluntary Change

"That's not the

answer," said the Chairman "How did it come about You received nothing? · Perhaps

that you persuaded, Mr. how the terms Bishop- to change the contract?- you can tell us

I don't were varied? ·

We did not persuade him. know; that work was done by Mr.. He did it voluntarily?—Yes; on Kwong: Wing, the supervisor. Lone occasion Mr. Bishop sent for Am I right in saying there was me, after the start of the work, a conversation between. Mr. and told me that our estimate of Kwong Wing and. Mr. Bishop and the prices for 200 feet, compared as a result these terms were with the cost plus basis, ours. was varied round about November 13? dearer,

Correct.

What happened after that con- Mr. Bishop?-He Up to

now many feet have versation with been completed? I think 13,000 told me to write him a letter re-

ferring to our conversation

that Did you suggest to him Government pay cost plus. 10%?— He suggested it, to. me:

Can you ·remember. If your foki had told you. Mr. Bishop had asked him to submit prices feet. for work on the Hong Kong) aide?- cannot remember.

Anyway, from your letter you were prepared to do tunnelling work in Hong Kong according to the prices submitted?-Yes sir.

Has your firm ever done. any work of this sort before?--No.

Has any of your fokis ever had; any experience of this work? Yes,

"

Where? - In the interior, of China, building railway tunnels.

But not A.R.P.?—No.

Firm's Estimate

According to your estimates you were prepared to make a tunnel 50 feet in at $25 per cubic yard in rock and $5 per cubic yard in

soft? Yes.

And for timbering the tunnel at $10 per cubic yard?—Yes.

for

These rise on a sliding scale at varied prices rising slightly 50 feet to 100 feet 100 feet to 150 feet, 150 feet to 200 feet 200 feet

to 300 feet?—Yes.

Your maximum quotation was $50 per cubic yard for tunnelling, 300 feet? Yes.

That for tunnelling in rock; and soft $10 per cubic yard?—Yes.

And for close timbering $15 par cubic yard?—Yes.

And you confirmed all these prices, covering all implements and labour, to be divided into three shifts of eight hours each? -Yes.

And alternatively, you proposed to hire the implements to Gov- ernment?--Correct.

You gave a list of the imple- ments and the charges, per month? -Yes.

On the assumption that Gov- ernment would do the work them- selves? Yes.

Not Accented What was the next thing that happened after you sent in this estimate? The estimate was not accepted.

|

:

How many sites are you work- ing on? - Many.

Roughly how many? Mr. Kwong Wing would know better.

Phoned Up CE

M Kwong Wing was then called and in teply, to the Chair- man said he was head sipervisor in the Kin Lee Company.

Can you tell us how your firm came to get the contrast? At first Mr. Bishop phoned us up?

Phoned who up? - Kin. Lee Company.

Who spoke to him? I attend- ed to the telephone.

He phoned you' up?--I attended the telephone so I was sent to

see him.

Did you go to see Mr. Bishop? Yes.

Tell us what happened.-First he' asked me if I had any machinery for excavating tunnels, I said "Yes" and he asked me how many such machines I had

You knew then that you could make more money if you stuck to the original contract?—Yes,

So did Mr. Bishop?—Yes.

The position is that you have a binding contract with Government and another one yerbally between you and Mr. Bishop, and that the variation was to the detriment of Government since they paid more and to the benefit of Kin Lee Company?-Correct,

None Complete

Any idea how many feet have been done?-13,500 feet.

How many sites?-Five. Any of those tunnels completed? No one yet.

сп When did you start work these five tunnels? I can't say

offhand when the work was start- was started in

I said five. I had then no idea ed. The No. 1 that it was in connection with September. making ARP. tunnels. He asked

Am I correct is saying that the

me how much it would cost to only authority you have for build- make a tunnel. I told him I coulding those. tunnels is a letter from not give him an answer straight Mr. Bishop on September 31 in yours, accepting your away but would have to make reply to enquiries. He also asked me how much it would cost to hire the machinery. I then went away.

Subsequently, you wrote him a letter? Yes.

or

terms?—Yes.

who was to supervise the work? Nothing was laid down as to

Nothing in writing.

Have you any letters between

Having you in fact sub-let?- Yes..

You quoted prices for tunnel-you and Mr. Bishop authorising ing a tunnel eight feet by seven you to sub-let?-Mo. feet either on Hong Kong Kowloon side? — yes.

You were prepared to do work on the Hong Kong side?—Yes.

Prices Accepted

What made. you mention

Hong Kong when you were not asked? It was my own idea to point out that the prices would be the same on, Hong Kong side. Those prices of yours were ac- cepted by Mr. Bishop? Yes.

And he instructed you to carry || on up to 200 feet? Yes, before I received the-letter- I had a con- What happened about it?-versation with Mr. Bishop who About one or two months later said that a trial would be made 1 was requested to submit an- up to 1200 feet to see how much other estimate,

it would cost. --..

Who requested you? Mr.

At $50 per cubic yard in rock

| Bishop, mengadakan ghanda na ma and $10 per cubic yard in soft?

Have you got the further estim- yes.

ate there? The second was about $15 for close timbering? workmen.

Yes."

At the request of the Chairman, You were told to submit accur- witness, produced- all the docu- ate day cost sheets to his office?— ments relating to the contract and yes. estimates...

Did you receive any money in advance from Government? No.

Did you complete the, 200, feet? Yes.

Did you do that?—Yes. Referring to the documents,

When did you start?-From the the Chairman asked witness first day. Several days after sending in the estimate, a letter by Mr. Bishop confirms- the, prices for tunnelling contained in your letter? --- Yes.

And he says that he has been authorised to authorise your firm to start on the work as soon as possible up to 200 feet? Cor- rect.c

He tells you that the site will be pointed out by Mr. Campbell?

Yes.

One of the letters, dated Nou ember 13, is. from Kin Lee to Mr. Bishop? — Yes.

Terms Changed

When? In November How much did it come to?- can't remember.

Have you any books on that particular job-No, all were sent to Mr. Bishop's office. Kin Lee did not keep any duplicates, all. were sent to Government

No Documents

You mean to say Kin Lee no documents of the job;

In this letter you informed Mr they completed and, were nal Bishop and explained the aby Government according to the rangements for the labour rate of the contract? Wo have not workmen, and for the equipment been paid.

to be used on the job? Yes.

And in reply to that letter, Mr Bishop, agree to the ferma stated therein? Yes, gr

You have not boon paid Have you claimed?- Although the worly has

* completed a year ago

been paid, but not according 19. the prices contracted Inridersn

And you performed that work on that basis? We were not paid according to the estimato.

Why not? Eventually we came to an agreement on a cost plus 10% basis.

What price did you recrive paye ment at? Cost plus 19

So in spite of the fact that you made an offer to Government and We are coming to that. On in spite of the fact that the offer subsc- September 8, Mr. Bishop con- was accepted you were

On whose authority? Mr. Campbell's.

When did he give this?—I don't the remember the date from very beginning we have sub-let.

How many sub-contractors have you on the job7-Five

Only five?—Yes.

(Continued on Page 12)

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