TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 166

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4.

Conditions of Contract

(a) F.I.D.I.C. Conditions

Again, you appear to have inaccurate information regarding conditions. It is not our intention to delete Clause 12 but rather to express it differently but covering all the important factors involved.

(b) Lump Sum

I'm afraid that I do not understand your reference to a lump sum and provision for escalation. The intention is to ask for a price based upon escalation calculated in a manner similar to the 'Baxter formula' and also for a fixed price/ alternative. We hope to avoid the considerable difficulties of measurement in a project of this size, except where additional work is involved.

I trust that this letter is helpful to you. I am sorry that the civil engineering contractors in the U.K. have decided not to show interest in the project at this stage, and will be happy to meet representatives of all or any of them at any convenient time to try and supply further information that might be required.

Yours faithfully,

N. S. Thompson

Chairman (Designate)

c.c. Mr. I. A. C. Kinnear

Senior British Trade Commissioner Hong Kong