Framework deal creates cut-throat bid fight

Grant Prior 16 years ago
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A Manchester Housing Association is looking to appoint three maintenance contractors to a £27m framework which will only guarantee one of them work.

Irwell Valley Housing Association is looking for contractors to repair and maintain 7,100 properties across Greater Manchester over the next four years.

Three firms will be appointed but under the terms of the deal only the cheapest bidder will start working for the housing association.

Irwell Valley bosses will then hold the other two framework firms in reserve to be appointed if they decide to dump the original winner.

An OJEU notice for the job states: “This will be awarded to the contractor submitting the most economically advantageous tender for the framework agreement.

“If the contract is terminated the contracting authority would expect to award a contract to the second placed contractor.

“Similarly if the contract is terminated the contracting authority would expect to award a contract to the third placed contractor.

“The framework agreement will also reserve the right for the contracting authority to run a mini-competition between the framework contractors.”

One contractor told the Enquirer: “This sort of call-off arrangement is becoming standard but the wording in the tender notice is fairly brutal.”

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