Government?s decision to terminate ProActive Management System?s contract to build the new senior secondary school was a ?monumental mistake? based on ?incompetent and/or malicious advice? the contractor says.

And the company will soon be making a public call for a ?full scale public inquiry? into the workings of the Ministry of Works and Engineering, and seeking damages for wrongful termination.

In its response to Government?s termination notice which was sent to Works Minister Ashfield DeVent yesterday, and obtained by , ProActive claims that the project was a victim of sabotage by civil servants. ?The history of this project is replete with clear and documented instances of sabotage against us. We have brought much of this to your and Premier Scott?s attention over these past many months, particularly those instances which we feel constitute attempts from within the civil service itself to hinder progress or to destroy the project entirely,? it says.

?You have seemed increasingly powerless to do anything about our complaints and concerns. The result has been a complete breakdown in both communication and progress which can not, and in the final analysis will not, be held the responsibility of this company.?

The Ministry faces ?serious systemic problems? ProActive continues. ?Other companies like us will face a similar fate if these problems are not addressed.

?The Bermudian public deserves nothing short of a full scale public inquiry into the history and workings of this contract from start to finish. We will be making a public call for such an inquiry.?

ProActive was ?very saddened? by Government?s decision to terminate the contract. ?This decision, made after the successful conclusion by PAMS of over 80 percent of the contract Works, will surely result in further delay in completing the building and will only increased substantially the cost to the taxpayer. We have to say that the decision to terminate is a monumental mistake. Like so much else in the history of this project, you have clearly based your decision upon what can only be described as incompetent and/or malicious advice.?

The letter gives notice that PAMS will be pursuing ?substantial? damages for unlawful termination in arbitration.

?We are advised that if, as we have every reason to expect, the purported termination is determined by the Arbitrator to be unlawful, no liability under the Performance Bond will accrue to Union Asset Holdings Limited.?

And PAMS will also be seeking resolution of claims against the Works Ministry that were outstanding before the contract termination.

And PAMS ?as well as our longstanding claim for Direct Costs associated with Construction Change Directives and all matters in dispute which have arisen since we executed the Settlement Agreement?.

Government had agreed to increase the contract price by $13 million and extend the completion deadline by one year in a February agreement to settle ProActive claims. The claims were in relation to design, work order and other changes from the Ministry.

The parties also agreed to settle outstanding matters by arbitration. ?We expressly reject, will disprove, and will show to be baseless, the breaches alleged against PAMS in the Notice of Termination. We have already fully set out in written correspondence to you the reasons why the claims made in the Notice are unfounded,? the letter continued.

?There is no need to repeat those reasons in this letter, although we reserve the right to amplify our response in written submissions to the Arbitrator.?

It adds that the company was ?proud to be chosen to serve the Government and people of Bermuda in the development of this important and historic project?.

ProActive was ?ready, willing and able to complete its contractual obligations and was asking only that Government do the same and, more particularly, that Government would give to PAMS the support which had been promised to us by your predecessor as well as a number of other Cabinet Ministers when the contract was awarded.?

But such support was not forthcoming, the letter continues, and their frustrations have been ?thoroughly documented?.

?At all times we have worked diligently towards a successful and timely conclusion to this project and we have resented the implication that we have done anything less.

?Contrary to the image which we have endured in local discussions, you know that we are very proud of the many decades of combined professional history which our administrative staff have brought with them to this project.

?All of our workers have been dedicated to the successful and workmanlike conclusion of this project and you already know that they have been bitterly hurt by your decision.?

Enclosed with the letter is an August 2 letter from the contractor to Government in which it asks the Ministry for an amicable resolution of all issues, a ?partnering approach? to finishing the school on time for students to enter the school in September 2005 and a meeting next month to resolve ?outstanding issues?.

The August 2 letter also gave a brief progress report of work done at the school and said that a September meeting would ?assist in a final push? to finish the project before Christmas.

?The ?outstanding issues? to which we referred were primarily concerned with non-payment by Government of funds actually owed to ProActive and not, as you suggest in your letter of the 12th August matters in respect of which we were requesting ?additional compensation?.?

The letter goes on to say that the company is ending its ?dignified silence in the face of public misinformation and innuendo? and had no choice but to speak out in its own defence and repair its reputation.

?We have endured many public utterances, most founded entirely in ignorance, giving the false and damaging impression that this company has been responsible for the many delays which have been occasioned in concluding this project. We feel that with your action in terminating the Contract we are no longer constrained by the burden of remaining silent and of leaving it to Government alone to respond to public statements and allegations regarding this project.

?As we owe it to our workers, or families and ourselves to repair the damage which has been done to our reputation, we shall soon be doing our part to correct many of false impressions which have taken root within this community, some of which quite frankly have resulted from Government mis-statements.?

In his press conference Friday, Works Minister Ashfield DeVent made clear that Government was expecting litigation and declined to respond to questions relating to the dispute with ProActive.

But he later said he had heard reports of sabotage but defended his staff as professionals.