Public sector bidders kicking up a stink

Recession prompts surge in number of complaints over how government contracts are awarded, finds law firm

Supplier complaints over the way public sector contracts are awarded have surged over the past four years.

According to commercial law firm McGrigors, the number of complaints challenging the government over the way in which public sector contracts were dished out leapt 55 per cent over the past year, from 47 to 73.

Just 14 complaints were made in 2007/8, before the recession began.

McGrigors said the spike was the inevitable consequence of fewer suppliers chasing a "smaller pie" as well as their increasingly litigious mindset.

Stuart Cairns, director at McGrigors, said: "The recession has meant that public sector contracts are at a premium. There are fewer contracts to go around, so disputes over how contracts are awarded have become more frequent and bitterly fought."

The proportion of complaints subsequently investigated by the government also rose dramatically, from 45 per cent to 89 per cent year on year.

Some 14 contracts are now being amended as a result of these investigations, McGrigors added, compared with none a year earlier.

Cairns argued that the government is coming under intense pressure from bidders to investigate complaints thoroughly.

"Bidders are increasingly aware of their rights under procurement law and as such are much more likely to take the government to court if they feel the bidding process was flawed. With public finances stretched, the last thing the government wants is to end up in costly court battles," he said.