03 August 2009 | Jake Kanter
Bristol City Council (BCC) has agreed to pay a supplier £800,000 in an out of court settlement following a challenge to its procurement processes.
A council spokesman told supplymanagement.com its procurement processes were correct and "robust", but added in a statement it did not want a legal challenge to delay the development.
After missing out on a deal to build and run a multi-million pound leisure complex in south Bristol, a consortium led by DC Leisure Management (DCLM) threatened to sue the authority for the cost of its unsuccessful bid (Web news, 24 July 2009).
At a BCC cabinet meeting on Thursday, council leaders decided to compensate DCLM to avoid delays to the construction of the leisure centre, as well as any costly legal and retendering fees.
Simon Cook, deputy leader of the local authority, said: "The legal situation cannot be allowed to derail this crucial development. The settlement represents just 1 per cent of the lifetime cost of the project and can be managed within the overall Hengrove Park budget."
DCLM said it is still a reserve bidder on the project.