Airport authority holds talks to avoid costly contract row

THE Provisional Airport Authority (PAA) is in detailed talks with top subcontractors to avoid a costly contract conditions row over work on the $50-billion airport project at Chek Lap Kok.

Intense negotiations have been going on between the PAA and the subcontractors' group, the Hong Kong Electrical and Mechanical Contractors' Association (HKEMCA), for about a month, although more informal discussions have been taking place for two years.

About 70 per cent of the whole airport project will be done by subcontractors, so the PAA is keenly aware how important it is to reach a satisfactory deal.

Both sides hope the negotiations will prevent a repetition of the bruising disputes the PAA has had with building contractors and consulting engineers during the past year. These were only settled after the constructors and engineers boycotted airport work, delaying the project by several months.

''The subcontractors, who will be responsible for everything from plumbing, air-conditioning, electrical supply to roofing and walling, hold the key to whether or not the airport is completed in time,'' said one senior construction manager.

The HKEMCA is taking responsibility for the PAA meetings because electrical and mechanical firms are traditionally the biggest in the subcontracting industry. But the association also includes representatives from the lift and escalator, plumbing and fire prevention industries.