put on hold because of "excessive'' bids by local construction companies.

The resort's American and Arab owners were "deeply concerned'' with what the two firms were proposing to charge for the project, Elbow Beach Hotel Development Company managing director Mr. John Jefferis said last night.

They have now decided to incorporate it into the "master plan'', to be submitted to the Development Applications Board early next year, he said. But, he warned, the whole multi-million dollar upgrade project would be scrapped if construction companies did not come up with "viable'' bids.

Mr. Jefferis seized the opportunity to blast construction companies for failing to take "a more realistic approach to pricing and realise that the excesses of the 1980s are over''.

"It's time for the construction industry in Bermuda to realise that the days of their cavalier attitude toward hotels is over,'' he said. "The local construction industry operates in a protected and cozy environment, whereas their hotel clients compete internationally in a frighteningly competitive market.'' He added Bermuda's hotel industry needed "constant reinvestment and innovative additions to its plant''. However, he said, this was unlikely to proceed at an acceptable speed unless the construction industry cooperated.

Mr. Jefferis denied reports that the resort had made "onerous'' time and cost demands on the six construction firms invited to bid, so as to get the suites built by summer.

"Our demands were not excessive at all,'' he said. "They were normal business practice.'' He also denied reports that the hotel might be considering going abroad to find cheaper labour.

"There is absolutely no way we would be going overseas,'' he said. The hotel was the subject of an Immigration Department investigation earlier this year when it was discovered an American wallpaperer and his family were working at the resort illegally.

Mr. Jefferis had planned to have the 22 suites finished by summer, with construction starting this week.

To enable the hotel to build during the less-busy winter months, the Development Applications Board had agreed to consider the plans as quickly as possible.

And after getting the go-ahead last month, Mr.

Jefferis had said he was wasting no time in forging ahead with the project.

He had anticipated a decision on the construction bids would be made by the end of November, with construction beginning in early December. He estimated the one-bedroom suites would take about five months to build and cost around $4 million.

However, the two local construction companies which submitted bids said yesterday they were still awaiting a decision.

Mr. Jeff McKay of BTS Construction and Mr. Peter Smith of D&J would only say they had been told the plans were on hold because their bids were over the hotel's budget.

They said they were waiting to here from the hotel.

A source in the construction industry told The Royal Gazette the hotel's demands for the project were "onerous''.

"It was a lot to be done in a short period,'' the source said.

The hotel bowed to public pressure in September, pulling the original plans off Planners' desks.