Mr. Paul Sheridan:

Take the example of a NEC3 contract. One tenders normally, one prices it and shows the value at which one can deliver that project. Once that is delivered, one has a budget one works to. The delivery becomes a target cost, so one tries to deliver it below that. If it comes in below that, the employer gets the benefit and so does the contractor. It is split. It depends on what is put in the contract, but usually it is 50:50. Then if there is a situation where the contract starts to go above, the client goes through a very strict auditing process. It is not a case of sitting down and doing a deal. One has to prove through an auditing process what the final cost is. What happens then is that there is a split as well, so the State is only paying for the actual cost, it is well managed and it does not have to absorb everything, nor does the contractor.