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FINANCIAL CONTROL FOR THE AIRPORT CORE PROGRAMME
(FC Information paper handed to Chinese and ACC on 3 June 1992)
Main features
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The
government
has introduced a far-reaching cost contol system for the ACP so as to minimize the risk of cost overruns.
The system ensures that up-to-date information is available on all aspects of planning and design of the ACP. This means that "trends" which can lead to cost increases are identified early.
Early warnings of cost increases are reported to NAPCO and department heads. Proposed design changes leading to higher costs must be fully justified and approved before detailed design is started.
If
the proposals are accepted, every effort is made to find savings in the same or other projects to offset the increase.
If
it is not possible to find savings, proposals must be put to a high-level committee chaired by the Chief Secretary a charge to the ACP contingency fund (made up of contingency funds for each project).
to
approve
Fixed price, lump sum contracts will be used for most projects, to minimize the risk to Government from inflation and underestimating of quantities.
Staff working on ACP planning have all be given a comprehensive project control manual and a Financial Circular setting out financial control rules.
Project control: p.1 of 2
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