May Gurney has lost its bid to be reinstated in the race for a £780m highway maintenance contract for Norfolk council

As Building reported earlier this month, the firm was not selected on to the short-list in relation to the re-bid of a five-year highways maintenance contract, which the council has valued at between £280m to £780m.

May Gurney, which is the incumbent provider of highways services to Norfolk County Council, said it was “naturally disappointed” with the news and launched a formal appeal against the decision.

But in a statement to the City, the firm has now said that appeal has been rejected.

The firm said: “May Gurney has been notified by Norfolk County Council that the Company’s formal appeal against the decision not to select it for the short list in relation to the re-bid of the council’s highway and related services procurement contract A has been rejected.

“Whilst disappointed, May Gurney remains fully committed to continuing to deliver a quality service under the terms of the current contract.”

Earlier this month May Gurney’s board announced it had agreed to merge with contractor Costain, only for rival Kier to announce it was also interested in tabling an offer.

Kier has now gained access to May Gurney’s books to decide whether or not to table a bid.