M&E workers at BAA's Terminal 5 project have won their battle for compensation to cover travel pay after an independent panel assembled under the Major Projects Agreement ruled in their favour.

The ruling will land m&e contractors on the project with a big increase in costs. As BSj went to press, the panel has yet to decide how much the payment will be. The unions are claiming £25 a day, but employers are seeking a settlement at a much lower figure.

It has been reported that the extra cost of covering this award will have to come from the contractor's bottom line. Contractors working on the project include Amec, Crown House Engineering and Balfour Kilpatrick.

At the moment the contractors have three options: To bear the cost of the increase; to refuse to pay and risk the collapse of the Major Projects Agreement; and to appeal the decision, which could throw the project into disarray.