Sessional_Paper_1931 — Page 12

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The Engineer in Charge, after investigation of the circumstances, recommend- ed a bonus of 25% on the Contract rates. Government authorized this bonus to effect from 1st April, 1924. The Contractor, however, did not consider the bonus of 25% adequate compensation for the unforeseen difficulties encountered in obtaining the filling materials and for the increase in the cost of labour since the commence- ment of the Contract. In December, 1924, the Contractor reported that he was los- ing heavily notwithstanding the 25% on his Contract rates and would be unable to complete the work unless granted further consideration.

On 5th March, 1925, Government authorized a Committee of Engineers to en- quire into the various rates paid under the Contract and the progress made in the execution of the work. The Committee's report is as follows:-

"We, the undersigned, having thoroughly investigated the conditions under which the work of the Praya East Reclamation is being carried on, have formed the opinion that the rates now paid under the Contract are very considerably below the rates ruling under current conditions and that a fair and reasonable adjustment can only be achieved by the payment of a bonus of 76% over and above the Contract prices on all work executed subsequent to the 28th February, 1925. We have arrived at this conclusion after personally inspecting the work being done and by a careful review of the whole of the prices. stipulated in the Contract.

We are also of the opinion that the Contract time should be extended by a further period of one year which would permit the completion of the Contract by 31st January, 1929.

Further, we consider it imperative that the payment of any bonus should be conditional upon a certain rate of progress being maintained in the depositing of filling material obtained solely from Morrison Hill and we attach hereto a schedule of progress which we recommend be adopted as a minimum.

A Schedule of prices is also attached on which our recommendation as to

bonus has been based.

(Sd)

(Sd.)

JOHN DUNCAN, M. INST. C.E. ROBERT BAKER, M. INST. C.E.

(Sd.)

(Sd.)

HONG KONG, 16th March, 1925".

G. G. WOOD, M. INST. C.E. ADAM ANDERSON, B.E., B.A., R.U.I

The 76% bonus is made up by an increase of 21.29% on all other items of work excluding the work of filling plus a rate of 72 cents per cube yard for filling material. With regard to filling, it was estimated that the hill contained 35% of rock and allowing prices of $1.50 per cubic yard of solid rock is situ, to cover the cost of blasting, quarrying and removing the rock and $0.30 per cubic yard for excavating the earth, transporting and depositing it as filling for the reclamation, (which prices are considered very reasonable) a rate of 72 cents was arrived at as the cost of obtain- ing filling materials from Morrison Hill. The Contractor's contract rate for filling materials from other sources than Morrison Hill was 60 cents per cube yard, plus haulage charges for any additional distance beyond one mile from the monument at Happy Valley. There were no cuttings of sufficient size to yield the balance of filling materials required for the reclamation at a cheaper rate than 72 cents per cube yard.

The Committee was of opinion that the contract rates together with the bonus of 76% would about cover the cost of the carrying out of the uncompleted portion of the works and were also of the opinion, if tenders were called for, that the cost would not be less than that under the bonus conditions recommended.

In this re- spect, quotations subsequently received from outside Contractor confirmed the opinion of the Committee.