Construction firm claims it was wrongly excluded from bid for social housing project

A construction company claims Galway City Council has wrongfully excluded it from bidding for a contract to complete 58 social housing units, it has been claimed in Commercial Court proceedings.

Glenman Corporation was previously awarded the contract to build the homes at the Garraí Beag Social Housing Scheme, Ballybaan More, Galway.

The commencement of the project was delayed until June 2020 due to the pandemic.

It was also marred by further practical and technical difficulties and, barely two months later, the council made its first attempt to terminate the contract, Glenman’s managing director, Albert Conneally, says in an affidavit.

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He says Glenman spent some €6.1 million on the project though it only received €2.75 million from the council.

Ultimately, in June 2022, the council terminated that contract and this had a devastating impact on Glenman’s business, Mr Conneally says.

The council advertised a competition for bidders to finish the project last September. In December Glenman was told it was being excluded from the competition.

Waiving entitlement

Mr Conneally says the effect of this decision was to force Glenman to waive its entitlement to maintain the confidentiality of the conciliation process under the previous contract or to force his company to waive its entitlement to challenge the decision.

As a result, Glenman is seeking to challenge its exclusion.

However, it first requires permission of the court to extend the time within which to bring the challenge because it failed to do so within the three-month time limit from the date on which the decision was notified.

Mr Conneally says the delay was due to the council’s refusal either to furnish it with a decision letter that did not refer to the confidential conciliation process or to consent to make reference to it in these proceedings. This left Glenman in a position where it was impossible to mount an effective challenge to the substance of the decision in time, he says.

The case was admitted to the fast-track Commercial Court by Mr Justice McDonald, who adjourned it to next month.