Lunchtime update from the Grenfell Tower Inquiry:

- Rydon manager gloated about being 'quids in' as he discussed profit boost company would get through switching cladding to deadly ACM

A large part of this morning's session focused on the cost saving made by switching zinc cladding for a combustible ACM product. As we previously learned, Rydon understated the costs to be saved on this in order to "pocket the difference" for themselves: https://www.insidehousing.co.uk/news/news/rydon-planned-to-pocket-savings-from-grenfell-tower-cladding-switch-inquiry-hears-67231

This was partly to cover for an estimating error Rydon had made when it priced the job. It received estimates of the savings (eg £577k) from sub-contractor Harley Facades, but told the TMO savings would be lower (£376k), intending to use the difference to make up its error.

Today Zak Maynard, former commercial manager, revealed that Harley also discovered it had made a mistake in the estimates of savings it gave Rydon. So the saving was actually considerably less than the £577k it had estimated.

In an internal Rydon email it was suggested this cost could "at some point in the future" be "reverse passed back up the chain" (ie, added to the eventual costs billed to TMO). Another member of team suggested "going 50/50 with Harley as it was their cock up".

This then discussed with Harley who - broadly - accepted to take a lower portion of the savings, resulting in the celebratory 'quid's in' email.

Asked what he meant by this, Mr Maynard smiled and said: "It just means more profit"

Other bits from this morning:

We learned that Harley had been asked to work on the basis of a 'letter of intent' in July 2014 which asked them to do £30,000 of preparatory design work ahead of a formal contract

But with no contract in place by September and costs mounting, an email was sent asking them to carry out £2.6m of work under the terms in the letter.

This is quite a common feature of the evidence so far: informal agreements and contracts not signed. Paints a picture of a job where details were not being looked after.

We also explored in some detail a bid from Rockwool to in summer 2014, to use an entirely non-combustible system instead. This was not apparently fully pursued or costed out, even though could have resulted in grant funding. Has come up with prior Rydon witnesses.