Legal challenge puts brakes on N Ireland schools initiative

The launch of Northern Ireland's £3.6bn schools modernisation programme has been halted at the 11th hour after one of the unsuccessful bidders for an initial £650m framework contract issued a legal challenge.

The challenge comes from Woodvale Construction, a joint venture between Northern Ireland firms Henry Brothers and FB McKee. It was made just days before the Department of Education for Northern Ireland was due to name the eight contractors on the four-year framework.

If successful, the legal challenge has major implications for all public sector framework contracts.

Woodvale's challenge centres on the procurement process used by the department, which it argues contravenes EU and UK competition laws.

The firm has questioned the department's decision to base its choice of contractor on bidders' estimated fee percentages, rather than on their estimated costs for the work.

At a preliminary hearing at the Northern Ireland High Court, Woodvale, represented by Michael Bowsher QC, argued that a more accurate way to assess bidders would be to ask them to price a sample project.

It also questioned the department's contention that the basic cost of the works would not vary significantly between contractors since they were sourcing their materials from the same market.

Mr Justice Coghlin ruled that there was "a serious question to be answered" as to whether the framework procurement process complied with domestic and EU competition rules.

A further hearing has been set for 11 March. Woodvale Construction declined to comment.

A department spokesman told CJ: "We have chosen eight framework contractors and were about to announce them back in November when Woodvale Construction made its claim. We cannot carry on with the process of awarding the framework until the case is settled."

The framework is the first phase of Northern Ireland's schools modernisation programme. It will run for up to four years until an Education and Skills Authority is set up. This body will then engage four regional strategic partners to deliver the remainder of the work.

CJ understands that the eight framework members include firms from Northern Ireland, England and Scotland.