Failed PFI bidder is given £800,000

A failed bidder for a private finance initiative project to build a new £21m leisure centre in Bristol has been paid £800,000 by the local authority so that building can begin.

According to publicservice.co.uk, DC Leisure Management threatened to sue the authority over its unsuccessful bid because some of its proposals that were rejected featured in the proposals from the winning bidder.

The news will raise further concerns about the hidden risks and costs which public sector organisations expose themselves to through PFI projects. Bristol City Council insisted that the procurement process had not been flawed, but that the council was concerned that any legal action could delay the project and maybe even put it at risk.

For more details on this story see this link: http://www.publicservice.co.uk/news_story.asp?id=10298