1.14 In the design and build contract between Laser and JLC Ltd, the latter agreed to provide new laboratory facilities that complied with the Department's output specification for a fixed price of about £82 million. At the time, Laser had access to funds totalling nearly £100 million (Figure 7 overleaf) to cover its total expected capital expenditure of £96 million.
1.15 In its financial model, Laser estimated that its maximum demand on the available funds would be £94 million, the rest of its cash requirements would be met from revenue received following completion of the early construction phases. Laser, therefore, had a small funding cushion to cover risks and contingencies that it had not passed down the contractual chain.