XN000022-1987-02-18 — Page 43

WEDNESDAY, FEBRUARY 18, 1987

41

TENDER DOCUMENTS CHECKED CAREFULLY

*****

TENDER DOCUMENTS ARE CHECKED INTERNALLY WITHIN DESIGN DIVISIONS AND BY SPECIALIST CONTRACT ADVISERS TO AVOID POSSIBLE CLAIMS BY CONTRACTORS, THE SECRETARY FOR LANDS AND WORKS, THE HON GRAHAM BARNES, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

AND ALL LANDS AND WORKS DEPARTMENTS DOCUMENTS AND SELECTED ONES FOR HOUSING AUTHORITY CONTRACTS ESTIMATED TO COST OVER $100 MILLION ARE CHECKED BY THE LEGAL DEPARTMENT BEFORE TENDERS ARE INVITED.

REPLYING TO A QUESTION BY THE HON CHENG HON-KWAN, MR BARNES SAID THE TERMS OF GOVERNMENT CONTRACTS WERE KEPT CONSTANTLY UNDER REVIEW BY AN INTER-DEPARTMENTAL COMMITTEE, WITH MEMBERS FROM ALL THE PROFESSIONS INVOLVED IN THE CONSTRUCTION INDUSTRY.

+IN 1985, GOVERNMENT INTRODUCED REVISED CONDITIONS OF CONTRACTS FOR BUILDING AND CIVIL ENGINEERING CONSTRUCTION, AND THE EFFECTIVENESS OF THESE REVISED CONDITIONS IS BEING MONITORED, + HE SAID.

+THERE IS REGULAR LIAISON WITH THE BUILDING CONTRACTORS' ASSOCIATION AND PROFESSIONAL BODIES ON ANY MAJOR REVISION. THE LAST TWO YEARS HAVE SEEN A SUBSTANTIAL REDUCTION IN THE NUMBER OF DISPUTED CLAIMS AS COMPARED WITH THE YEARS 1982, 1983 AND 1984.

+IN THESE TWO YEARS, ONLY SIX CLAIMS HAVE BEEN TAKEN TO ARBITRATION,+ MR BARNES SAID.

HE SAID UNFORESEEABLE SITUATIONS SUCH AS GROUND CONDITIONS, DELAYS AND DISRUPTIONS CAUSED BY WEATHER OR UTILITY DIVERSIONS OFTEN OCCURRED DURING CONSTRUCTION.

+50, CONDITIONS OF CONTRACT PROVIDE FOR THE CONTRACTOR TO BE REIMBURSED FOR SUCH EVENTS, SHOULD THEY OCCUR, BY CLAIMING ADDITIONAL PAYMENT.

+THUS, CLAIMS ARE A NORMAL PART OF CONSTRUCTION CONTRACT LIFE AND THE VAST MAJORITY OF THESE ARE ASSESSED BY THE ENGINEER OR ARCHITECT, AND RESOLVED TO THE SATISFACTION OF BOTH PARTIES AS PART OF THE NORMAL ADMINISTRATION OF THE CONTRACT.

+ IT IS ONLY WHEN THE AMOUNT CLAIMED OR THE CONTRACTOR'S ENTITLEMENT FOR EXTRA PAYMENT IS IN DISPUTE THAT CLAIMS GO TO ARBITRATION OR LITIGATION IN COURT, HE SAID.

IN 1984 TO 1986, THERE WERE 16 DISPUTED CLAIMS TOTALLING $481 MILLION IN RESPECT OF PUBLIC HOUSING, PUBLIC BUILDING AND CIVIL ENGINEERING PROJECTS. THE AMOUNTS PAID IN SETTLEMENT OR PURSUANT TO AWARDS TOTALLED $64 MILLION.

/IN RECENT