Q11 Chairman: I had better put this question to Mr Ewer then. Is it a fair criticism that you got most of the money for half the job?
Mr Ewer: Our former construction company would not have entered into the job if it was not going to be paid on the way through because you have pointed out already the fact about Laing's financial capacity, which was not to take on £90 million worth of building without being paid until you handed over at the end of the day.
Q12 Chairman: So you did get most of the money for half the job.
Mr Ewer: You need to be paid on the way through.
Q13 Chairman: So you did get most of the money for half the job?
Mr Ewer: Half the job? The job was substantially finished. I know it is not performing to what was absolutely required but on a job where-
Q14 Chairman: Why did you enter into this contract which proved to be beyond your capabilities?
Mr Ewer: I have to hold my hand up and say that John Laing Construction, which was sold in 2001, as you know, did grossly underestimate the technical complexity ofthe job. Had they fully appreciated the technical complexity I do not think they would have entered into the construction contract, not in that format.
Q15 Chairman: Mr McNaught, the same question: why did you enter this contract which proved beyond your capabilities?
Mr McNaught: We had a great deal of confidence at the time that John Laing Construction would design and build the new laboratory to the DTI's specification. They had a proven track record, looking back 10 years ago. I think the year the contract was signed they were the building contractor of the year, celebrating 150 years in the industry, so there was a great deal of confidence that they could achieve the output specification.
Q16 Chairman: Sir Brian, can you complete this job for £18 million? You are confident, are you? The private sector had such difficulties you are confident that you can do it where they could not do it?
Sir Brian Bender: I asked my team exactly that question, why are we confident, and the answer is that first of all we are nearly there. We are confident of getting into the building for occupancy from next March.
Q17 Chairman: Hang on: we were there yesterday. This is six months away now and there still seems to be a lot of work on this.
Sir Brian Bender: As I understand it, 80% is now available for occupancy. Six out of ten of the scientific modules are fully occupied, two out ten partially. We are confident that by the end of March it will be 98% ready. There are issues about the category two facilities. In terms of readiness for completion, we are cautiously confident. In terms of how we managed to do it, I think the answer is that we have learned an awful lot along the way from our tracking and from the advice we have had, so that by the time of the termination we had a fair degree of confidence about how to proceed.
Q18 Chairman: Mr McNaught, do you think they can do it?
Mr McNaught: I have not seen their completion plan. We had a plan that showed, apart from category two, that we would have completed around the middle of last year.
Q19 Chairman: Last year?
Mr McNaught: Yes.
Q20 Chairman: So they are performing less well than you would have done?
Mr McNaught: We had an experienced team on site. They had to start from scratch.