Mayo County Council is considering appealing a High Court decision in which it was found to have unlawfully eliminated a Clare- based company from the tender process in the construction of the Knock/Claremorris by-pass.
Mayo county manager Mr Des Mahon dismissed as inaccurate reports that the authority was facing up to €10 million in damages in light of the July 9th ruling.
Mr Mahon told Mayo County Council that any damages which may be awarded on the conclusion of court proceedings would be related to the contractor's profits on such a contract.
The entire contract was worth £7.716 million (Irish pounds). He stressed that the contractor's profits were only determined after costs such as labour, materials, plant hire and the use of capital were taken out of that figure.
High court proceedings were instituted against the council by Clare Civil Engineering Ltd. (CCEL) in October 2000.
While the lowest tender for the contract for the construction of the by-pass was received from CCEL, the tender was refused by the council because elements were deemed to be non-compliant with the Instructions to Tenderer.
The contract was instead awarded to local Kilkelly-based contractor Frank Harrington Ltd.
The county manager also told councillors that the authority was considering lodging an appeal against the decision.
"In conjunction with the National Roads Authority (NRA), the council is reviewing the lengthy judgment of the High Court as it is considered that there are important points of law which arise out of the decision, and repercussions for public procurement of contracts nationwide."
The case is listed for mention on Friday for consideration on the issues arising.
The county manager said the Knock/Claremorris by-pass was 100 per cent funded by the NRA.
"All documents and procedures in the contract were approved by the NRA. Mayo County Council acted as agents for the NRA and awarded the contract to Frank Harrington Ltd."