This summarises Government's response to claims made by Bermuda Industrial Union subsidiary Union Asset Holdings Ltd. over who has the right to complete the construction of the new senior secondary school:

Union Asset Holdings Ltd (UAH) has given a bond for $6.8 million to the Government. The bond is a guarantee or surety that Pro-Active will properly perform the contract.

If Pro-Active does not properly perform the contract then the Government has the right to demand payment under the bond.

Pro-Active has defaulted on the contract and the Government will complete the project.

If the project costs more than the agreed price with Pro-Active, Government has the right to call upon the bond.

The bond does not say that if the contractor defaults, UAH has the right to take over the project or be consulted in the selection of the new contractor.

Let us give you the example of building a house in Bermuda. The position is no different from a bank guaranteeing the performance of a contractor who builds a private home for you as the home owner.

If your contractor defaults and cannot complete building your house, and you then ask the contractor to leave, then under these circumstances the bank has no right to insist to you, as the home owner, that it has the right to complete the construction of your house.

It is clear that as the homeowner, you have the right to choose the new contractor to finish your house.

In this example, UAH is in the same position as the bank guaranteeing the performance of a builder.

The building of the second senior secondary school must and will go ahead. Matters that can be resolved through arbitration or tested in the courts will proceed simultaneously.

Democracy dictates that UAH has the right to challenge any issue it deems necessary, however the Government must conclude that no one has the right to further delay the progress and completion of the school.