A dispute over an alleged "confusing" and unlawful procedure adopted by Irish Water concerning the awarding of a contract to lay 10km of water pipes has come before the High Court.
KC Civil Engineering Ltd (KCC) secured leave today for a judicial review of the September 2014 decision of Uisce Éireann/Irish Water rejecting KCC’s tender, of some €1 million, for the pipe-laying contract. Irish Water intends to offer the contract to the next lowest tenderer, the court heard.
The “County Kerry Water Conservation Project – Main Rehabilitation Works – Tralee Estates” contract was for the installation of some 10km of pipes to service some 680 houses in various estates in Tralee.
Kerry County Council initially commenced a public procurement procedure for award of the contract but Irish Water later took over that procedure.
John Trainor SC, for KCC, with registered offices at Naas, Co Kildare, was granted leave by Mr Justice Séamus Noonan for judicial review of the procedure leading to Irish Water’s September 2014 decision not to proceed with awarding the contract to his client.
In its proceedings, KCC alleges the award criterion for the contract meant it would go to the most economically advantageous tender. On July 1st, 2014, Irish Water wrote informing KCC it had been identified as having submitted the most economically advantageous tender and seeking the performance bond required under the contract and other documents.
Irish Water later sought and was supplied with documents including a draft of the bond as accepted by KCC’s surety for that bond, subject to a caveat relating to the surety’s procedures for putting the bond in place, claims KCC.
KCC also alleges Irish Water had supplied a signed agreement and letter of acceptance of the KCC tender.
In those circumstances, it is alleged Irish Water had in a letter of August 21st 2014 unlawfully sought an undertaking from KCC, to be provided by 1pm on August 29th, 2014, related to the performance bond. Irish Water had warned, unless the undertaking was provided, KCC’s tender would be rejected,
KCC claims it complained that Irish Water was engaged in a “confusing process” and was not entitled to seek such an undertaking. KCC did however provide an undertaking at almost 4pm on August 29th, 2014, to the effect it would provide the bond required, KCC alleges.
On September 2nd, 2014, it was notified its tender had been rejected because it had not provided the undertaking by 1pm.
In seeking to quash that decision, KCC alleges Irish Water failed to be objective, transparent and proportionate in making decisions and in the conduct of matters after August 21st 2014. As a result of the alleged actions by Irish Water, KCC claims it has suffered loss and damage.
