The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-08
BIDS FOR The PANAMA CANAL.
DATE OF OPENING POSTPONED
UNTIL JAN. ".
T0e Reason Assigned IL That Certain
Changes I'm the Contract Have Heen
Made &C the Instance OF Prospective
Observation-Disclosures OF BoHd Require ed.

Changos In the Contract Have heen
Made at the Instance OF Prospective
Observation-Disclosures OF Bond Required.
WASHINGTON, Dec. THE date OF open
ing bid for the contract for the completion
Of the Panama Canal has been postponed
from December II until January ~. accord
ing to an announcement this evening at
the Offices OF the IsthmiRn Can Commits
sion. The reason assigned Is that certain
changes in the form of contract have been
made at the Instance Of prospective bidders
who desired 70 have several clauses inserted
which will give them more protection.
These changes have been made. and be-
cause OF this tho postponement 10 necessary.
inasmuch as the commission must issue
another invitation for bids, resdvertise
and distribute the altered form of contract.
The postponement Ia something OF a sur
prise, and until the announcement wa
made there had been no surface indication
that a change Of the contract was con
tsmplated.
The following statement was issued
3 -On account Of certain changes made
at the Instance of a number Of contractors
in the invitation and form Of contract re-
quired to be executed by tho successful
bidder under the invitation for the compile
ton OF the construction OF the Panama
Canal issued by the Isthmian Canal Com
mission on October 9, 1906, the date OF
opening bids has been postponed from De-
ceTnbeT IL to IL o'clock NJ. January IL, 1907.
The invitation and form Of contract, with
the changes made therein. will be held in
the office OF the Isthmian ANAL Commits
sion ut Washington, D.. C., subject to in
spection by all contractors or others in
terested therein. until December 10, on
which day in their final form they will be
formally ~reissued."
The most important change in the specih-
cations OF the contract, according TO An
explanation of the details tonight, is the
reduction OF the bono required from So 900
0O0 TO s., 900 900. Chairman Shonts and his
associates and advisers believe that a
81, 900, 900 bond il sufficient and ample pro-
lection to the Government, especially in
view OF the provision of the contract that
bidders must have a capital of s., 900.
The bond. however, Is a part OF the capital
Another important change concerns ma
terial which the contractor believes TO be
detective. The altered form OF co ntract
provides that if the contractor fl nds any
material which he believes defe Ctive he
shall notify the chief englneer OF the COM
mission, who is the Government super
visor Of the work. and call upon him for
written approval OF the material. Then,
If after the material ia used it proves de-
Reotive and has TO be replaced, or repairs
are required because Of the effectiveness,
the contractor will not be compelled to
bear the expense, but IL will fall upon the
Government.
A third change concerns the possibility
of thewage scale on the Isthmus t~uCtuating
The compensation Of the bidder who gets
the contract depends upon the total cost
OF the work and the length Of time it takes
To complete il. If the cost is lower than
the estimates prepared by the engineering
q body provided Tor ~ the
contract, consisting Of Government engi-
neers and Representatives of the successful
bidder, the contractor receives a bonus; II
the cost is more he Is penaliZed. Therefore
the contractors desired some provision
whereby they would be paid II the scale of
wages should go up. Consequently a pro-
vision has been inserted that the engineer
committee fix the rule governing any
changes in the average annual wage, ~
The prospective bidders who brought
about the changes in the contract also had
apprehensions concerning the data upon
which the engineering committee would
base its estimates OF the proper cost and
the proper length Of time for completion of
the work. They declared that some of the
boTings that have been made might prove
erroneous, and that when the actual work
should be- encountered it might be much
more difficult and increase the cost, which,
Of course. would AFFECT the profits.
To meet such contingencies il is provided
that the President under such circum-
stances may assemble the engineering
committee. or a new one, in case the origi-
nal body il not available, and direct them
10 revise the estimates of cost and time
for completion of the work in accordance
with the new facts concerning the physical
character of work to be done. This pro-
vision will work both ways, however, for
il the bOrings or other data should be err
roneous in such a way that the cost of the
work were really less. the engineering
committee would be convened to reduce
it, estimates. IL is understood. however.
that this provision will not be- taken adj
vantage OF unless there be some very ma
terial change in the physical character Of
the work because of erroneous data. amount
ing probably TO some millions Of dollars.