1.35 The FCO used a very broad estimate of the cost of utilities (power, heating, water and sewerage) of about £3 million when comparing the short-listed bids. The FCO later agreed to pay an extra £0.3 million over the life of the contract in return for the supplier accepting the risk of changing utilities consumption. The FCO benchmarked this estimate against a database of utilities cost information held by their technical advisers, Schal, who advised the FCO that the program used by the supplier to estimate utilities consumption and costs was internationally recognised and that the FCO could be confident in its validity. During negotiations the FCO transferred the "energy consumption risk" for the building to the operator so that the operator has underwritten the energy efficiency of the building design, in terms of anticipated energy consumption costs.
1.36 The FCO also included a broad estimate of the cost of tertiary services (such as portering, mail and reprographics) of £3.8 million at the bid stage. Detailed estimates were not sought from bidders at this stage because the FCO intended to put these services out to competitive tender later in the process. By June 1998 more precise estimates totalling £5.3 million were calculated following discussions with the supplier. The actual amount payable will be decided following competitive tendering for these services prior to the Embassy handover. The tendering process has not yet been finalised, but the FCO's estimate of the likely cost of tertiary services has now fallen to £3.3 million.