£650m Northern Ireland schools framework under threat

The £650m Northern Ireland Schools Modernisation framework could be scrapped after the High Court ruled its procurement was flawed.

The ruling raises serious concerns about the future of similar framework deals across the UK.

The legal challenge was brought by Woodvale Construction, a joint venture of Henry Brothers and FB McKee, against the Department of Education for Northern Ireland (DENI), after the jv failed to win a place on the framework last year.

The challenge came just days before DENI was to announce the eight successful bidders.

Woodvale argued that the procurement process used by the department contravened EU procurement and competition laws.

It questioned DENI’s decision to base its choice of contractor on bidders' estimated fee percentages, rather than on their estimated costs for the work.

The jv also questioned the department's contention that the basic cost of the works would not vary significantly between contractors.

Last week the Northern Ireland High Court upheld the challenge. It found that it was unrealistic to assume that costs would be consistent across all contractors and DENI’s failure to obtain more detailed pricing information in relation to the various contractors was flawed.

Woodvale’s solicitor Alistair Graham of law firm White and Case said Woodvale will go back to court later this month in a bid to have the framework scrapped.

"We consider DENI's breach of its European Community obligations to be sufficiently serious to require that the Framework Agreement be scrapped and the original tender process be re-established,” he said.

He also questioned the validity of other framework contracts. “I understand there are other frameworks similar to this one in the UK and in Northern Ireland,” he told CJ.

A DENI spokeswoman said the department was considering an appeal, adding: “The judgement is complex and the department will need to consider the implications for the delivery of projects under the programme.”

The eight framework contractors are:

• Laing O'Rourke / Turkington
• Graham Construction
• McLaughlin & Harvey
• P Elliot / McCombe Brothers 
• Gilbert Ash / Glasgiven Contracts
• Bowen Construction / Mascott Construction
• FHT (Farrans / Heron Brothers / Tracy Brothers)
• Trinity (David Patton & Sons / H&J Martin / Felix O'Hare)