TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 194

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Since the prices given below are based on those ruling at

30th June, 1973 we have started applying this system from that. date, and the escalation included has been based on uniform rates

of 10% per year for both materials and labour in Europe and Hong Kong. We must also point out that the prices are based on the fundamental design concepts chosen by your Consultants and on the assumption that it will be feasible to construct the Works according to such

concepts.

Alternative One

In connection with this alternative we now bid a ceiling price of

HK$5,876m.

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 being developed is finalised and turned over to us. 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

This could

in respect of such a contract price, but we would expect it to be of

the order of HK$4,000m.

This would represent the sum of several lump sum prices, respectively" for the Civil works and for the complete M & E works and supplies.

The lump sum contract prices are to include provisions for

adverse physical conditions and quantity overruns.

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