TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 43

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While this ceiling price would remain in force for the life of

the contract, it would not necessarily be the final contract

price. The contract price would be determined after the soil

surveys now under way are completed and the design information

This being developed is finalised and turned over to us.

could be by the middle of 1974, and may well represent the

final stage of negotiations. We are not at this time able to

make any commitment in respect of such a contract price, but

we would expect it to be of the order of HK$

This would represent the sum of several lump sum prices,

respectively for the Civil works and for the complete & E

works and supplies. The lump sum contract prices are to

include provisions for adverse physical conditions and quantity

overruns. They would not include allowances to cover

escalation, and escalation would accrue based on formulae to

be negotiated and on actual rates of increase of costs and

prices. The ceiling price is based on the assumption of

annual increases as follows:

Civil works:

European labour

European materials...

Hong Kong labour

Hong Kong materials

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