Support services contractor launches formal appeal as Norfolk council plans to end relationship with firm
Support services contractor May Gurney has been dropped from the bidding process for a £780m highway maintenance contract for Norfolk County Council.
The firm said in a statement that it has not been selected on to the short-list in relation to the re-bid of the five year contract, referred to as highway and related services procurement contract A.
May Gurney, which last week agreed to a merger with contractor Costain, is the incumbent provider of highways services to Norfolk County Council, and said it had already begun a formal appeal against the decision. .
May Gurney, which is headquartered in Trowse, Norfolk, said it was “naturally disappointed” with the news. The contract, which the council has valued at between £280m to £780m, is due to commence on 1st April 2014.
May Gurney’s shares fell 4p on the news, to 242p, more than 10p below the offer price for the firm made by Costain last week.
May Gurney’s board last week announced it had agreed to merge with contractor Costain, only for rival Kier to announce it was also interested in tabling an offer. Kier is currently seeking to gain access to May Gurney’s books to decide whether or not to table a bid.
May Gurney’s statement said: “May Gurney, the support services company, has received preliminary notification from Norfolk County Council that it has not been selected on to the short-list in relation to the re-bid of the Norfolk County Council highway and related services procurement contract A, which is due to commence on 1st April 2014 for an initial period of five years.
“We are naturally disappointed with the County Council’s decision and have started a formal appeal process with them. We will provide an update on this in due course. In the meantime May Gurney remains fully committed to continuing to deliver a quality service under the terms of the current contract.”