TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 130

Annex D

HONG KONG MASS TRANSIT RAILWAY SYSTEM

PROPOSALS FOR A FORM OF CONTRACT FOR THE CIVIL ENGINEERING FORK

G

2.

In our Assessment of May 1973 contained in Addendum As

to the British Group's Froposals, we have shown in

paragraph 1.2.10 that if construction is to begin early

In 1974 it would be necessary for the Consortium to have

a Letter of Intent enabling it to incur expenditure by

Esp October 1973 and that while it will not be possible by

phis date to conclude negotiations on prices, they could

10 started immediately, be well advanced with a view to

completion and the signing of a firm contract by the

beginning of 1974. We proposed that this negotiates

contract should be based on all information available and

should recognise the great difficulties and uncertainties

which apply to the civil engineering work and should ensure

that the Government would benefit from Lajor sevings

at the same time providing for some reasonable limitazion

on the Consortium's overall risk?

We have giver, careful consideration to a variety of forms

of contract which might be employed and our conclusion is

that the target contracs will best se the interesse c

the Hong Kong Government and of the Conserviur.

The parges

type of gouprect is designed to deal with the situation

where the work is of such magnitude (or cannot be defined

quem to be.sively with sufficiens accuracy at the tender stage)

thet e. standard re-measured contract is unsuitable both