An obscure European Union directive on public works procurement allows for councils to award contracts on specialised jobs without a requirement for a minimum number of bidders.
But Ben Denton, senior director at consultant Abros and adviser to a number of housing PFI projects, felt this procurement route could be fraught with problems. He said: "This would be right on the edge of what is legal. I think people would be within their rights to challenge this, given that there is an established market for housing PFI services."
Denton said companies which felt they had lost out would be likely to make the case that the process was anti-competitive. He added: "This regulation would help free up the PFI procedure, but it cannot be applied carte blanche."
A senior lender involved in bidding for housing PFI projects said: "Anything that is streamlined and tends towards partnering and away from the tedium of the current PFI process is good."
n Camden council has asked contractor Carillion to re-bid for a PFI contract after one of two other bidders dropped out. The council felt this left it open to accusations of a lack of competition.
Source
Housing Today
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