Tendering process warning

 

A construction lawyer at national law firm, HBJ Gateley Wareing, has reminded public sector bodies of their obligations when it comes to advertising and tendering for contracts, and warned of the likelihood of increased challenges to this process and potential financial penalties.
 
Tricia Morrison, construction partner at HBJ Gateley Wareing, also said that the firm is seeing an increase in enquiries relating to potential challenges of public sector tendering procedures and contract awards.
 
The warning comes in the wake of a City of Edinburgh Council employee being investigated by police after allegations of a housing repair scam. The worker has been suspended after claims that he received money from a firm for awarding contracts without putting the work out to tender.
 
It also comes at a time when the Comprehensive Spending Review points to cuts of £1.3billion for the Scottish Government in 2011-12, meaning there will be even greater competition for diminishing public sector contracts.
 
The EC Treaty requires all member states within the European Union not to discriminate on the grounds of nationality and to adhere to the principles of transparency and fairness of process. Public sector bodies are required to undertake their affairs, including awards of contracts, in accordance with these general principles.

Tricia said: “In the current economic climate there is intense competition for public sector contracts, and these bodies should be extremely careful how they undertake the tendering process.
 
“It is imperative that public sector bodies comply with their obligations, which require some contracts to be advertised and tendered in accordance with particular procedures.  The general principles will apply to other contracts.
 
“If the public body fails to comply with these regulations, they may face serious consequences. These could include an interdict being awarded to stop a contract being entered into and the challenging supplier seeking damages.”
 
www.hbjgateleywareing.com