As you are doubtless aware, the usual practice in such cases is to arrange contracts as to carry out the work for a fixed price. Their profits will then depend upon their success in organisation and in effective economics, whilst their principals have to rely on supervision to ensure that the work is properly done. In practice, though supervision can be made effective, it is unsound in principle; and approaches adoption.
The system which M. Ormsby proposes would, it is true, affect the part of the contractors in keeping tenders low and carrying out the work at the cost of efficiency on the one hand, and economy at the other. It would finish down the cost, and Government would find it impracticable to attempt supervision to secure economies in construction. Any attempts, e.g., to interfere with the number of the staff or the wages of the workmen might be met by the argument that the Contractors will not be held responsible for the proper execution of the works under such matters allowed their own way in such matters.
10. It does not appear from your despatch and its enclosures that a definite arrangement has been made as to the position of the contracting firm in regard to the Director of Public Works. I presume, however, that there is an intention of vesting the Director of responsibility, both as regards...
ol
ther
a
Ram and Gibles by a
percentage outley is unsound in prundifle; and approrects adoption. The usual practice in such
Cases is,
As
You are
I cannot
doubtlen
with the
out the
to arrange Continct as to carry was for a fixed price Their profits will then
defend upon this success in organisation and in espective economics whilst their principals have to
han to rely efour refervision to
that the work is
to ensure
broberly
Fon. In praptic pough suferission
Can
to
exist be made effective
9. The system which
M. Ormsby proposes
obrali
would, it is time, affect the part o
for massing their
wook, but they would
interest in
have
M
in keeping
M
tendeng arry the contractors
of
to Economy at the Cook of Efficely
on the Muhand.
down the cost, and 126
would finis. it
Government impracticably to atterift of supervision to
by
лисаму
secure economies in construction
Any attempts, e. s.,
to
interfere with the number
of the staff o
mish be met
a wages the workmen
by
a
the argument that the
Contractors will not be held
responsible for the proper execution of the works unders allowed their own
such matters.
way in
10. It does not
affear from your desfalch ay
aits enclosures that definite arrangement has
To the fosition
been made as
of the contracting prin in
to the Duictor of Publi regard to I presume, however, Works.
that there is of
intention
Farvesting the Duicts of responsibility, bott caflayed big the
A
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