I think we are tracking nicely. To get a foot in the door with...

I think we are tracking nicely. To get a foot in the door with government agencies, CSIRO & DoD requires very slim margins of profit, if any, at first. Especially on a new product such as microgrids. Having equity partners at this stage is critical so as not to spend all our cash in hand.

Once you are a preferred supplier it makes no sense for the purchaser to go back out to the market to seek others, as the incumbent supplier has an intricate knowledge of your systems and has built up good rapport with the staff and systems in place.

The procurement process to introduce a new supplier is fraught with danger and governments especially need stability.

I have worked in the construction industry for many years and the companies I worked for were always trying to get another contractor to quitebelow the others. Money/cost always talked and that is why so many contractors and builders go belly up.

To win the contract with a low quote means you need to cut corners to keep up with the pace of the project. Everyone gets the shites because quality is compromised but the principal contractor wanted to accept the lowest price in the first place and now the job is turning to crap.

The safety person wants everything done to legislative requirements due to significant financial risk to themselves and the company but the contractor simply can't comply with safety as it takes too much time and he looses money.

When corners are cut, defects build up & up and it's a never ending cycle of pain to get the project completed on time and on budget. Construction is a vicious market to survive in.

Reputation is everything just as CCE are trying to explain in most announcements and thry are also endeavouring to build a new technology from scratch.