The Scottish Court of Session held in Sidey([2011] CSOH194) , that Clackmannanshire Council owed a duty to bidders to evaluate tenders fairly and in accordance with its published procedure. The case concerned a challenge by Sidey to an award by the Council of a contract for a kitchen and bathroom replacement programme to a rival company, Pyramid. The Court found that the contract was valued at £2.5m and therefore was not governed by the Scottish public procurement regulations. Interestingly the Court also went on to conclude that EU general principles of law would not apply either as there was insufficient evidence of cross-border interest. Nor did the Court find that there was an implied contract that the award would go to the most economically advantageous tender. Nevertheless, the Council had failed in meeting the legitimate expectation of the unsuccessful bidder to apply the principles of equal treatment and fairness in the evaluation of the tender.
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Local authority has a duty to act fairly in below threshold tender
- Nabarro LLP
- United Kingdom
- December 1 2011
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Philip I. Weis
Senior Corporate Counsel
Pfizer