2.6 After the Department had appointed Laser as preferred bidder, reservations about its understanding of the project's requirements remained. In early 1998, the Department was of the view that some of Laser's proposed mechanical and electrical solutions would not deliver the specified performance.
2.7 In April 1998, JLC Ltd stated that it would list areas in the new laboratories that would not meet the output specification. It wanted the Department to amend the specification to suit the proposed design. The Department noted that JLC Ltd's representatives appeared surprised when the Department explained that the outputs were core requirements that should drive the design, rather than the other way round.
2.8 At this late stage in the procurement, the Department was still concerned that JLC Ltd lacked understanding of the nature and purpose of the output specification. However, the Department considered that, in transferring design and construction risk to Laser, the financial and reputational consequences of failure would discipline Laser and JLC Ltd into meeting the required performance. The Department, therefore, was content to permit Laser to commence site clearance and foundation construction in advance of the signing of the contract.