CO129-509-15 Water supply- development scheme 30-1-1928 - 17-1-1929 — Page 164

-2-

162

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.