A local contractor faces penalties because the three-mile fence around the airfield was not finished on time.

Bermuda Tech Ltd. rushed on Friday night to finish the section around the sports field so it could open over the Labour Day weekend for use by Bermudian residents, Finance Minister the Hon. Grant Gibbons told The Royal Gazette .

"They were supposed to have it finished before the handover'' which took place at midnight on Thursday, Dr. Gibbons said. "Obviously, we're disappointed that they didn't.'' Bermuda Tech won the $355,000 contract to build what is believed to be the longest fence ever ordered by the Bermuda Government. It is to separate the airfield from the rest of the lands at the former US Naval Air Station at St.

David's.

Now, the company faces cash penalties, Dr. Gibbons said.

The contract set penalties of $200 a day for work not completed after August 18 and $2,000 a day for work not finished after August 31, he said.

"Works & Engineering is looking into that,'' he said. "There were some issues related to the hurricane which put them behind.

"There are times when things don't always go according to plan, and this is one of them.'' Mr. Terry Griffiths, president of Bermuda Tech, said he was reluctant to comment on all the reasons for the delay, but the hurricane was a factor.

"We had to move all our materials indoors,'' he said. "To move that much equipment takes quite a bit of time.'' Other than the section around the sports field, only a couple of gates needed to be completed as of the weekend, Dr. Gibbons said.

The chain link fence is six to seven feet high and made from aluminised steel to prevent corrosion.