OGAFIDENTIAL
(3)
quantify the risk by making a financial provision in the contract
cost nor would it be commercially acceptable to limit the
financial claims to a predetermined figure. The conventional
way of dealing with unforeseen circumstances is within the terms
of the Contract Conditions and if, for example, the Civil work
is delayed because of adverse physical conditions with significant
consequential effects on the M & E production installation and
commissioning programme, then such extra costs as we incurred
should, in our opinion, be included as part of the overall claim
on the client without being limited to any arbitrary predetermined
figure. These risks are uninsurable for a very good reason and
are outside the scope of normal commercial contracting.
Responsibility for Detailed Design
We have already indicated in our proposal that we would be
responsible for detailed sub system design and interface
compatibility.
If required we would take design responsibility
The problem in meeting your
fer the total M & E system.
requirement is not so much one of design responsibility but the
costs of the design work required to be done on a competitive
basis in the 9 months October to July. We would not be willing
to meet these costs ourselves nor would we wish to provide the
Steering Group free of charge with some extremely valuable
'know how' and advanced engineering technology which could be
used by a competitor if we were unsuccessful in obtaining this
Thus while we are willing to undertake the design
contract.
work, we wish to be paid for it.
JNS/bmv
30.8.73.
Page 120Page 121
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