Sessional_Paper_1931 — Page 13

The payment of the bonus of 76% was subject to the following further condi- tion that, should the measurements made by the Engineer shew an excess of filling material in the Reclamation over the quantity of material removed from Morrison Hill a deduction at the rate of 49 cents per cubic yard of such excess quantity shall be made from the sum which, after adding the bonus of 76%, would otherwise have be- come payable to the Contractors.

(The above rate of 49 cents is the difference between the rate of 72 cents per cubic yard determined by the Committee and the Contract rate of 23 cents per cubic yard for filling materials).

The result of the foregoing recommendation was estimated as follows:-

1. Payments to Contractor of 25% bonus award

2. Estimated amount of 76% bonus on uncompleted

works

Total

$

20,337.19

$1,293,653.08

$1,313,990.27

The bonus award of 76% became effective on 1st March, 1925. During June, 1925, the work was brought practically to a standstill by a general strike, and it became necessary to modify the Schedule of progress. The Contractor maintained progress with the deposition of filling material in accordance with the bonus condi- tions as modified in respect of time until 31st March, 1928, during this period bonus payments to the Contractor amounted to

$903,733.67

this sum together with the payments under the 25% bonus amounting to $ 20,337.19

gives total bonus payments to be borne by Marine Lot Owners

$924,070.86 equivalent to 34.6% increase on the actual value of work carried out under the

Contract.

It may be of interest to note that the amount by which the next lowest tender exceeded that of Messrs. Sang Lee & Co. was equivalent to 22.3% increase on the lat- ter's tender, whilst the amount by which the highest tender exceeded that of Messrs. Sang Lee & Co. was equivalent to an increase of 32.5% as against the excess of 34.6% brought about by the bonus payments. Labour conditions improved in favour of the Contractor from 1927 onwards, the difficulties of obtaining the filling from Morrison Hill, however, increased to such an extent that any saving on a reduced rate for labour was more than offset by a larger percentage of rock than was estimat- ed for by the Committee of Engineers, the result being that the 76% bonus could not be reduced.

of

Estimate:-

The work of dredging trenches for the foundations of the sea wall was car- Item II ried out departmentally at a cost of $71,756.74. In 1922, Government acquired a Priestman Grab Dredger for this work at a cost of $76,000. On completion of the Dredging". work, this dredger was put up for sale. Although the sale was advertised in the Government Gazette, in the Vernacular and English local newspapers, no offers were received for its purchase. Eventually Government took over the plant in December 1928 at the valuation of $30,948.48 placed on it by the manufacturers' agent. The depreciation, viz.: $45,051.52 was calculated on the basis that, at the date of sale the price for an improved type of Priestman dredger was $61,300.00. The cost of maintaining and operating the dredger and the disposal of the dredged materials amounted to $26,702.22, this together with depreciation amounted to $71,753.74.

Estimate :- Reconstruc-

In order to provide satisfactory gradients for the discharge of stormwater and Item VI of sewage into the new drains on the reclamation, it was necessary to reconstruct the storm drains and sewers on the level area at the back of the reclamation. This tion of work was carried out at a cost of $365,208.33, the original estimate being Drainage $326,000. The excess over estimate was brought about by the increased cost of labour.

works on back areas.