Amey takes action after 1p highways bids ruled “too low”

Grant Prior 13 years ago
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Amey is accusing officials at Transport Scotland of acting “irrationally and unlawfully” in rejecting its bid for a £350m road maintenance contract.

The authority rejected Amey’s bid for being too low.

The Herald revealed that a submission by the company to the Court of Session showed Amey’s bid to win the maintenance contract for north-west Scotland included quotes for 2,312 jobs – of which 1,513 were priced at 1p.

The 1p bids are believed to be for tasks such as grass cutting, tree-felling and replacing street lights.

Transport Scotland rejected the bid after concluding that it carried “significant unacceptable risks” and was not “economically viable nor sustainable”.

The Herald said that in its rejection letter, Transport Scotland estimated that Amey would have had a shortfall of £123m, according to the company’s own estimate of the income it needs.

Last month, the government agency announced that it would appoint rival firm Bear.

Transport Scotland has now been forced to suspend signing the deal following the Amey challenge.

Amey argues that Transport Scotland acted unlawfully and irrationally in awarding the contract because it did not consider the guarantee put in place by Amey and parent company Ferrovial.

A spokeswoman for Transport Scotland declined to comment on the details of the legal case but said that ministers would “rigorously defend” it

 

 

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