6.
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Thirdly, that where a penalty is incurred by a contractor
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the matter should be reported to the Board, which after consideration of the circumstances would make recommendations
to the Government,
It must be remembered that money due to
Government under a penalty is public money and should not bo remitted except with the authority of the Governor in Council. It is undorstood that the system of payment of a bonus to
a contractor for work completod in good time has rocontly boon adopted in the Public Works Department. The Commissionozs ondorso the system.
15. It was said. in paragraph 11 that where there is an intermittent domand the "tendor" system is moro advantageous. This applios oqually to personnel, lf thoro is a programmo of constructional work oxtonding over a considerable period of yoars, as in the case of watorworks, it is probably cheaper to employ a permanent staff. But where there is no such programme, it is very much cheaper to have a small staff sufficient for maintenance work and minor constructional works, c.g. markets, latrines, ctc., and whon any big work is undortaken, such as a hospital, to let the work out to private enterprise, Otherwise it will be found that as soon
as the large work is completed the department will be saddlod with the cost of a large staff far in excess of normal requirements. That to a certain extent is the position in the Public Works Department today. It must also be remomborod that once an officer has como on to tho permanent ostablishment it iw exocodingly difficult to got rid of him, and that evon thon a continuing liability for pension remains. An alternative
mothod of dealing with large constructional work is for Government to do the work itself but to engage for it special. staff, as has hoon dono by the Singapore Municipal Council
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