€26m tender rejection challenged by firms

TWO COMPANIES have brought a legal challenge over the rejection of their €26

TWO COMPANIES have brought a legal challenge over the rejection of their €26.5 million tender for a contract for an extension to the water treatment plant at Leixlip, Co Kildare.

The tender submitted by Veolia Water Ireland Ltd – based in Kilkenny and a subsidiary of international company Veolia Water – and civil engineering company BAM Civil Ltd (formerly Ascon) was rejected by Fingal County Council in December last on grounds of alleged non-compliance with instructions to tenderers and the employer’s requirements.

In challenging that decision, the companies claim the council had altered the terms of the contract from a design and build contract into an employer’s design contract and to date has conducted three separate procurement pre-qualification procedures.

The consortium claims the council failed to comply with its obligations to provide a transparent and precise specification. They also claim the council failed to comply with general EU treaty principles in relation to fairness, transparency, reasonableness, proportionality and mutual recognition.

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The companies are seeking to challenge the council’s rejection of their tender in judicial review proceedings transferred to the Commercial Court yesterday by Mr Justice Peter Kelly.

Michael Cush SC, for the companies, said they wanted an early trial of the matter and the judge said that could be accommodated.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times