04 April 2011

Westminster settle with Mouchel over parking contract

Westminster City Council has reached a £600,000 settlement with parking services provider Mouchel over the awarding of the UK's biggest parking contract.

Cllr Lee Rowley, cabinet member for parking, told Surveyor the council 'deeply regretted' the original decision, which he described as 'an error in procurement' Mr Rowley said: 'We faced a conundrum. We had advice that we could be liable to £4m-worth of costs should it go to judicial review.

'We decided it was not a prudent position to take to spend money on the trial, even though we were confident of winning.'

The deal is the result of a decision by the city council last year to not award the £50m parking enforcement contract to Mouchel, who were named preferred bidder in March 2010, before being revoked and reopened for tender.

An accelerated procurement process resulted in NSL being named successful tenderer in June last year.

But Mouchel then launched a legal challenge of the decision to award the contract to NSL, formerly know as NCP.

Mr Rowley attacked the decision by Mouchel to take the city council to court. 'It is regretful that private companies feel they can hold local authorities over a barrel.

'It is a mark of the litigious culture we are moving into - nothing is fallable.'

The news comes against the backdrop of the prime minister David Cameron's anticipated Open Public Services White Paper, which seeks to allow private companies to enter a bidding contest for all public services, and could see a considerable amount of work outsourced.

Mr Rowley stated the situation Westminster had to contend with does not mean outsourcing is undesirable for local authorities though.

'There is no issue with the market and I'll defend that approach. But there needs to be a framework that works, and there is a whole series of issues surrounding this issue.

'Procurement law is becoming increasingly complex and it is a difficult framework in which councils have to operate.

'We need to have a competitive marketplace, but one in which contracts are simple enough to work.'

SIGN UP
For your free daily news bulletin
Highways jobs

Residential Worker

Durham County Council
£30,024 - £33,699 plus allowances
WHAT WE DO MATTERS The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 Newton Aycliffe
Recuriter: Durham County Council

Occupational Therapist

Oxfordshire County Council
£38220 - £40777
Help us deliver our vision for adult social care in Oxfordshire About us At Oxfordshire County Council, you do not just work for us… you learn, grow, and thrive with us. Whatever your career aspirations are in adult social care, we are here to supp Banbury
Recuriter: Oxfordshire County Council

Community Support Worker - South Essex

Essex County Council
£25395.00 - £32131.00 per annum
Community Support Worker - South EssexPermanent, Full Time£25,395 to £32,131 per annumLocation
Recuriter: Essex County Council

Programme Engagement Officer (Thurrock)

Essex County Council
£26485.00 - £31158.00 per annum + + 26 Days Leave & Local Gov Pension
Programme Engagement Officer (Thurrock)Permanent, Full Time£26,485 to £31,158 per annumLocation
Recuriter: Essex County Council

Chief Finance Officer (Section 151 Officer)

Somerset Council
Competitive, with a package commensurate with experience
A career-defining leadership role in one of England’s most important new unitary authorities Somerset / Hybrid (2–3 days per week on site on average)
Recuriter: Somerset Council
Linkedin Banner