CO129-415 - Governor Sir May - 1914 [12] — Page 455

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Payments.

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defects in materials or workmanship shall appear the Con- tractors shall forthwith make good any such defect at their own cost and to the satisfaction of the Engineers provided that such defects are not due to negligence on the part of the Operator in charge or in the event of the Contractors failing to do so the Government may (if they think fit) make good such defects and the cost thereof as certified by the Engineers shall be paid by the Contractors to the Government or may be deducted by them or the Crown Agents from any monies due or to become due to the Contractors hereunder.

12. The payment referred to in Clause 21 of the General Conditions shall be:-

(A) An instalment of 70 per cent. of the value according to the Schedule of Prices of each consignment of plant delivered on board ship.

(B) An instalment of 15 per cent. of the Contract Price (as certified by the Engineers) shall be paid within fourteen days after the production to the Crown Agents of a written Certificate from the Government to the effect that all the works have been duly completed and are in proper working order; and

(c) The balance of the Contract Price shall be paid within four weeks after the expiration of the period during which the works are guaranteed by the Contractor under this Contract provided that complaints have not been received of any defects in material or workmanship having arisen during the guarantee period and in the absence of such complaints the guarantee period shall be considered as having automatically expired twelve months from the date of the Engineer's Certificate of completion hereinafter referred to in Clause 14.

Should any such defects be proved before the expira- tion of the period of twelve months the balance of the Con- tract Price to be paid to the Contractors less an amount to be agreed upon between the Engineers and the Con- tractors as representing a reasonable sum to cover the cost of making good such defects the Contractors undertaking subsequently to remedy such defects for the sum agreed if called upon to do so.

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remain the

13. The Engineer referred to in Clause 3 of the Special Engineer to Conditions shall remain the Agent of the Contractors and nothing agent of the in this Contract contained shall establish the relation of master and Contractors. servant as between the Government and the Contractors' employee but he shall be subject to all Government rules and regulations.

completion to

14. When the works shall have been completed and tested to Certificate of the satisfaction of the Government the Engineers shall give the be given. Contractors a Certificate of the completion thereof and thereupon the Government shall take over the works.

15. The Contractors shall at all times during the continuance Contractors

to provide an of this Contract provide an Office in some convenient place in the Once in the

Colony. Colony where notices can be served upon them.

16.

notices on

All notices to be given to the Contractors under this Con- Service of tract shall be in writing under the hand of the Crown Agents or the contractors. Engineers or the Inspector or the Director of Public Works Hong Kong or some person authorised by them or him, and may be delivered or sent by post to the Contractors at their registered office or at their office in the Colony, or to the Engineer referred to in Clause 3 of the Special Conditions on behalf of the Contractors and any notice so delivered or sent by post shall be deemed to have been given to and received by the Contractors at the time when it is so delivered or if sent by post at the time when it would be delivered in the ordinary course of post and in proving such service by post it shall be sufficient to prove that the notice was properly addressed and posted.

other rights.

17. The Contractors shall at all times fully indemnify the Patent and Government and every member and officer thereof against all actions, claims demands costs (whether Solicitor and Client or otherwise) or expenses arising from or incurred by reason of any infringement or alleged infringement of any letters patent trade mark or name copy- right or other protected right in respect of any plant. work material process or thing, system or method of using fixing working or arrangement used fixed or supplied by the Contractors and shall pay all royalties and fees payable in respect thereof.

to be decided

18. In case and so often as any difference dispute or question Differences shall arise concerning or relating to the works or any part thereof or by Engineers. any covenant engagement matter or thing contained in this Contract

or in any guarantee or agreement which shall have been given or entered into by the Contractors in connection with this Contract or with the works or any part thereof or the construction of this