GOVERNMENT will give Berkeley project contractor Pro-Active an extra $13 million and 12 months to complete the new Second Senior School.

Works & Engineering Minister Ashfield DeVent said in a press conference yesterday that the new completion date for the school would be September 30 this year, instead of the original target of September 4 last year.

And he announced that Pro-Active had originally made a $20-million claim against Government, which had been negotiated down to $13 million.

The extra money means Pro-Active will receive $81 million for building the new 850-student school, while another $20 million will be needed for furniture and equipment.

And the cost is likely to go higher, as the Government and the contractor could not agree over further items, which will go to arbitration.

Those items are compensation claimed by Pro-Active for an insurance policy and adjustments made to the Bill of Quantities ? a schedule of agreed values for units of work.

Premier and former Works & Engineering Minister Alex Scott ? widely accused of making Mr. DeVent his "fall guy" last week ? was there to lend his support to his new Minister.

Mr. Scott said the Berkeley problems paled when compared to the cost overruns of two major construction projects under past United Bermuda Party (UBP) administrations.

He cited the Tynes Bay incinerator, originally budgeted at $26 million, which he said eventually cost $73.7 million. And Mr. Scott said Westgate, which started at $20 million, finished at $38.8 million.

And the Premier also announced plans for a new fund, to be built up in association with local banks, that would help to give small contractors the financial backing to take on major projects.

Pro-Active president Arthur Ebbin observed the press conference in the Cabinet Office yesterday and cancelled his company's own press conference, slated for two hours later in the day. He said nothing.

The consultants who represented the Government in the negotiations ? the Florida-based HR Lubben Group ? actually teamed up with Pro-Active at the time the company was bidding for the lucrative contract in 2001.

Mr. DeVent said the delays on the school project had been a disappointment to many but he urged Bermudians to draw on their personal experience of construction.

"Managing large projects often has cost overruns," Mr. DeVent said. "The challenges we have faced are not unique. They can and are being resolved.

"We invite the people of Bermuda to reflect on the building of a home, the renovating of a kitchen, the adding of a room to their own house.

"How many of us can say these projects have been completed without additional costs? Certainly this risk is magnified with a project the nature of the Second Senior School.

"Can we do better? Yes, we can. I have listened and will continue to listen to both comments and criticisms. The challenge is a difficult one but I resolve to get the job done."

Mr. DeVent announced yesterday that Pro-Active and the Government had reached agreement at 1.45 p.m. last Friday ? just hours after the necessary funds had been allocated in Finance Minister Paula Cox's Budget speech.

Mr. DeVent said Pro-Active had been granted a 365-day extension to complete the school, plus an extra 26 days to allow for the time taken to negotiate the settlement.

He said that, of the $13 million, $5.1 million would be paid in monthly instalments of $388,442 for time-based "general conditions" through to September 4 this year.

"These time-based payments are a natural part of a construction contract designed to cover the costs associated with operating a construction project," Mr. DeVent said.

Of the remaining $7.88 million, Mr. DeVent said that $2 million was paid to Pro-Active last Friday "on the basis of substantiated documentation".

And the rest would be paid as each $1 million worth of work was completed and verified by architects.

"To be clear, as a result of our negotiations, Pro-Active have agreed to submit their project records to an open audit to substantiate their claim up to the balance of $7.883 million," Mr. DeVent said.

"Such a process will provide the added comfort of ensuring that the public purse is being protected and disbursed only in accordance with the financial instruction of the Government."

Mr. DeVent conceded that extra workers might need to be brought in from overseas to help speed up work so the target date could be achieved, and said the Government would do everything to help the contractor do that.

Both he and Mr. Scott stressed that any qualified Bermudian who wanted a job on the project could get one.

Last week, Mr. DeVent, just weeks after taking over as Works Minister, announced that $13 million of extra money was to be allocated to the project in the Budget. Mr. Scott denied Mr. DeVent had been a "fall guy" and insisted there were no regrets about the award of the contract to Pro-Active in 2001.

The Government has faced criticism for awarding a major contract to a company inexperienced with major projects. Works & Engineering officials had recommended a bid that was $5 million lower.

"Pro-Active won the contract fair and square," Mr. Scott said. "We would have had to have been prejudiced against them not to have awarded it to them.

"This Government came into office saying the small businesses would be given a fair opportunity to participate in the economy ? and this was such a case. Their bid of $68 million was the closest bid to our contractual price."

Mr. Scott added that Pro-Active had faced challenges but was on course to deliver a "quality building". One of those challenges had been lack of funds, he said, and there were plans to address that to allow smaller companies a real chance to bid for big contracts.

"We have been discussing creating a fund with the three banks," Mr Scott said. "This would mean anyone tendering for a Government contract would have the private sector to turn to for funds."