TNAG-1175-FCO40-1477-Proposed-replacement-airport-for-Hong-Kong-at-Deep-Bay-or-Ch-1982 — Page 72

CODE 18-77

Reference

Mr T Muir OT4

HIK

18241

cc Mr Clift HKGD, FCO -

Розко

Blue 3

30

...3.1..)

ADVANTAGES OF NEGOTIATED CONTRACTS

In your minute of 16 July, you have raised an entirely reasonable point and indeed suggested the answer. Although the negotiated approach does have some advantages, these are not as clear cut unless the project is dealt with on a turnkey basis. Similarly, turnkey contracts have advantages but these are increased when the negotiated route is chosen. Nevertheless, as you are aware, turnkey contracts are put out to open tender. One can perhaps say that, in terms of large projects, negotiated contracts are virtually all arranged on a turnkey basis but, depending on the type of project, a turnkey contract does not have to be negotiated. The essential point which the paper makes is still valid, however, that particular benefits are associated with negotiated turnkey contracts.

BRp.

A C Hutton PEP1

V/250 EXT 5454 19 July 1982

M. Kaza

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