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But should they exceed the contract price then the 11 per cent. was to be proportionately decreased by an arranged sliding scale, provided, however, that Van Hattum and Co. did not exceed the specification by more than 100 per cent., in which latter case the Company would have the right to cancel the contract. By this provision Messrs.
The contract for the construction of the first sixty miles compels admiration, if only for its impudence. In the first place the contractors, Van Hattum and Co., were to build the line at a cost to be mutually agreed upon by them and the railway company, and they were to receive as remuneration 11 per cent. upon the amount of the specification.
Van Hattum and Co. could increase the cost by 100 per cent, provided they were willing to lose the 11 per cent. profit, leaving them a net gain of 89 per cent. They did not neglect the opportunity. Whole sections of earthworks cost £23,500 per mile, which should not have cost £8,000.
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