TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 44

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M & E:

European labour

%

European materials

•

.%

Hong Kong labour

Hong Kong materials

•

·

+

Annual increases beyond these levels are to be construed as

events of force majeure and compensated outside the ceiling

price. As already agreed, compensation for any other event

of force majeure is to be outside the ceiling price, (It

will be noted that with this form of contract, escalation

charged would be that actually taking place and not that

assumed in calculating the ceiling price, hence the

possibility of a final contract price lower than the ceiling

price).

Alternative Two

Under this alternative we now bid a contract price of HK$

This contract price is also a ceiling price except as regards the

part of the contract payable in HK dollars, which is to be

adjusted as set out below.

The contract price represents the

sum of several lump sum prices, respectively for the civil

works and for the complete M & E works and supplies (certain of

which such as the ventilation system will be assessed at this

stage as provisional sums); in each case covering adverse

physical conditions and quantity overruns, The contract price

also covers all European escalation, based on the following

annual increases:

3