Harland & Wolff may have bought itself time in the battle to secure its future and win a $650 million (€826 million) contract to build the Cunard ocean liner, Queen Mary II.

Cunard's president and chief executive, Mr Larry Pimentel, told The Irish Times he wanted to give the troubled Belfast shipyard time to prepare a revised bid. "Fundamentally an extra month isn't going to kill the project," said Mr Pimental. "We expect the H&W bid this week and will take the time to evaluate it."

The shipyard - which has no other vessels on its order books - is one of two shortlisted by Carnival Corporation, Cunard's parent company. French shipyard Chantiers de L'Aplantique is also in the race.

Media speculation had focused on a likely announcement this week during the world's largest shipping exhibition, held in Miami, Carnival's home city. But Mr Pimentel indicated Cunard could delay its decision as long as H&W's new bid price was right. "Economics are a very important part of the project and if H&W joins with another yard it will lose the bid," said Mr Pimental.

Last week Cunard rejected H&W's original bid because it would have meant subcontracting the outfitting work to German company Lloyd Werft.

It is understood Harland & Wolff is engaged in negotiations with several British-based companies to undertake all the outfitting work at the Belfast yard. The Antrim firm Mivan is understood to be a possible partner.

A H&W spokesman said the company was breaking down the bid to several packages which would be given out to tender. He said it would use as much local talent as possible.

Most experts believe the Belfast yard is an outside bet. "The French have an edge over Harland as they are very established shipbuilders," said Mr Tony Gray, finance editor of Lloyd's List, a London shipbuilding publication.

"There is also a question mark over Harland going forward. The parent company made no secret that if the arbitration goes against them the yard will be in trouble," he said.

The arbitration relates to the continuing dispute between Global Marine and H&W over a $400 million contract. A ruling in the arbitration process is expected within two years.

The French yard is a proven builder of cruise ships and currently has a full order book. H&W last built an ocean liner in the early 1960s. But the specification of the Queen Mary II may suit H&W, said Mr Gray.

"The French yard has a very good track record of building cruise ships but this is a slightly different requirement as a liner's hull is more robust and certain aspects would be closer to H&W's expertise," he said.

Cunard's management is aware of the potential weaknesses within the H&W bid. "Candidly I think the French are far ahead," said Mr Pimental. "H&W are trying to do something that is not the norm for them. I think there is a bit of complexity in their bid." On the Global Marine situation, he said: "When you make your decision you don't close your eyes to such things."

But Mr Pimental would like to maintain the British link. "The more that is British about the Cunard brand the better it is for us . . . " There is something people like about historical origins and the US looks at the UK with a great deal of favour. The ship buffs love the notion of H&W having the possibility of building this ship."

The decision will rest, however, on the best price, best delivery date and guarantees for the completion of the ship, said Mr Pimental.

The North's Industrial Development Board (IDB) and local politicians are working closely with H&W on its proposals to bid for the Queen Mary II contract. They want intervention aid of up to 9 per cent to support the bid and are understood to be involved in negotiating a guarantee for the Queen Mary project. H&W's parent company, Olsen Energy, is the sole guarantee for the Global Marine contract and cannot guarantee a project the size of the Queen Mary II.

Discussions are thought to be advanced regarding the purchase of a guarantee from the ship mortgage guarantee company, which has links with the Department of Trade and Industry.

The Ulster Unionist spokesman on enterprise, Sir Reg Empey, said yesterday local politicians were working hard to put in place the best public sector package legally possible. He said the contract could worth up to $750 million.

The scale of the Queen Mary II is exciting most ship yards. She will be the first new purpose-built ocean liner for thirty years and will become the world's longest passenger vessel at 1,100 feet.

The ship's stack will tower over 20 stories above its keel and its engines will generate a massive 140,000 horsepower. The liner will utilise the same amount of electricity as a city the size of Southampton in England, from where the ship will start its transatlantic journeys.

The Queen Mary II will accommodate 2,500 guests but will have an extremely large crew as one staff member will attend to every couple of guests.