CO129-577-7 Water Supply- Tai Lam Chung Valley reservoir 8-8-1939 - 26-1-1940 — Page 20

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when the estimated cost becomes known as the result of our

Report, we could arrange for a lump sum fee payable by

instalments to be agreed.

5. (i) If it should be desired that we should subsequently

undertake the general supervision and full responsibility for

the completion of the Scheme, whether carried out by contract

or by direct administration, we would be prepared to do so

for a further fee of 11% on the expenditure.

•

(ii) For the supervision of the work, if carried out

by contract, or for the organisation and supervision if carried

out by direct administration, we should select the staff to be

engaged and the cost thereof would be payable by the

Government.

As in the case of the Shing Mun Scheme, we should

be prepared to consider for appointments other than that of

Resident Engineer any officer of the Public Works Department

who may be recommended by the Director.

(iii) The expenditure upon which the percentage

referred to in paragraph 5 (i) would be calculated would

include all freight and similar charges and contingencies and

also the cost of local supervision, but our own fees would,

of course, not be included in the expenditure.

(iv) The cost of local staff for the supervision of

the scheme if carried out by contract is not a material addition

to the payments under contract conditions of execution, but,

if the work is carried out by direct administration, the cost

of the personnel of the organisation is substantially

increased, for, additionally to what is necessary in a

supervisory capacity, a considerable extra staff such as a

contractor would have to engage is required, and supervision

properly forms part of the expenditure on the scheme. The

duties and responsibility which devolve upon us when a scheme

/is

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