TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 47

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two basic considerations:

we are deliberately attempting to

offer advantageous options to offset a ceiling price which

we must at this time for reasons of self-protection, place

at a somewhat high level; and we much prefer to have our

contract on a straightforward unit price basis uncomplicated

by conflicting profit motivations stemming from having

accepted unusual risks.

Clearly a large number of further details as well as

agreement on contract conditions needs to be settled,

which would of course properly be done during contract

negotiations, We believe that we have put forward

sufficient definition of our counter-bid to justify its

being found responsive and capable of evaluation, as you

require. Once that is determined, we are at your disposal

to give any clarifications you may require. In particular,

we would be pleased to help you develop that combination of

contract features in the range we have highlighted here which

may best meet the needs and preference of the Steering Group.

You will notice that whichever of the alternatives you may

choose, it will be possible for the Group to receive a Letter

of Intent and to start work right away.

:

for GEC-Elliott Automation Ltd.

for I.M. Intermetro S.p.A.