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(c) Reduce the building specification
(a)
The current estimate includes savings already made by optimisation of the substructure design on this difficult sloping site, and by reducing some of the specifications and refinements to the designs (for example, changing the precast concrete cladding proposed by Farrell for a good quality natural stone). We will continue to look for ways of reducing the specifications when we receive the Final Sketch Designs and Report, but doubt if there is further scope for substantial savings without unacceptably detracting from the quality of the building.
Outhouse some of the Consulate-General and British Council functions, or abandon the idea of a new building and lease space instead
To pursue this would be contrary to the 1990 Ministerial decision, endorsed by the Prime Minister, that it was important for the future confidence in Hong Kong that Britain should be seen to acquire a substantial building on a prestigious site for all of its office representation. There are, anyway, good economic reasons for building, because rental costs in Hong Kong are extremely high compared with building anew on a site that cost us nothing. (Rental increases are currently running at approximately 10 per cent per annum.)
(e) OED to find the shortfall of funds from elsewhere in
the overseas estate's capital programme
8.
We need to ensure that the construction costs are kept firmly in check, but meeting their currently forecast excess over the PES provision would not unacceptably distort the capital programme.
L
With the exception of (e), the options above are either unrealistic or uneconomic in the long term. In the case of (e), and in view of the British Council's involvement, we have considered that they should contribute 34% of the shortfall, based on their requirements being 34% of the total gross requirements foreseen at the time of the PES bid (and broadly of the present scheme). But the British Council decision to co-locate with the Consulate-General was based on their understanding at the time of the PES settlement that there would be neither capital nor rent payable by them (beyond a proportion of the nominal ground rent). The British Council have advised us that they have no funds available to take on extra unexpected costs and
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