Sir Robert McAlpine's legal challenge against the Scottish
Parliament could be helped after the release of a damming report
into the procurement of the £430m Holyrood project.
The 50-page report, drawn up in 2000 by cost consultant Gardiner
& Theobald (G&T) and recently obtained by independent MSP
Margo MacDonald under the Freedom of Information Act, warns of
breaches of EU procurement rules in awarding Bovis the contract in
1999. Bovis was initially removed from the bidding and then
reinstated.
"It is disappointing that so many guidelines, rules and procedures
set by the Scottish Executive, the Treasury and the European
Commission have been blatantly ignored and broken," the report
stated. "This project ought to have been a model of good practice.
It is clearly not."
Commenting on the escalating costs of the project, which finally
ended up costing £430m compared with original estimates of
£40m, the report argued: "We have identified inconsistencies
and irregularities in the procurement process for the construction
manager and quantity surveyor. It is our belief that all of these
items had an adverse effect on the costs of the project. It is not
too late to take action to correct mistakes."
Despite the findings, it took three years before the report,
commissioned by the parliament's auditor general Robert Black, came
to light as part of an inquiry into what went wrong with the
project in 2003.
McAlpine is proceeding with a £4.3m writ against the
parliament (1% of the final cost of the building), claiming Bovis
was unfairly awarded the contract. It is believed to have already
obtained a copy of the report to add to its defence.
The contractor, which is claiming the fees it would have made if it
had been awarded the contract, is due to submit its case to the
parliament in the next two weeks before a hearing on 23
March.
However, sources believe McAlpine's challenge could be scuppered,
as under European procurement laws it only has three months
following a contract award to make a challenge under the existing
remedies directive.
MacDonald, who described the release of the report as a "bitter
blow" to the Scottish Executive and parliamentary authorities, is
now requesting copes of all correspondence between the auditor
general and G&T regarding the project.