DVTA engaged consultants to review its options

4.16  In view of both the Joint Working Group's inability to fully resolve the test time issue, and the contractors' conditional offer, DVTA engaged consultants, in May 2004, to review the possible options available to it under the contract. The consultants identified these as being:

•  initiating steps to terminate the contract;

•  imposing deductions from the contractors' unitary payment, with a view to renegotiating the contract; or

•  proceeding with the process of negotiations with the contractors.

4.17  Termination of the contract was not considered a reasonable course of action. In addition, DVTA concluded that it was not currently in a position to implement deductions for non - availability of the service, nor in respect of overtime and extended-day working costs actually incurred, until such time as it had identified conclusively why required test times were not being achieved, and where responsibility for this rested. Only at that stage will it be possible to determine how much, if any, of the additional cost is the responsibility of the contractors.

4.18  In our view, it is important that DVTA moves quickly to prepare a complete and accurate costing of both the total additional expenditure incurred as a result of the failure to achieve the 18-minute test, and the estimated proportion which it will seek to recover from the contractors (see paragraph 4.6 and Figure 7).