075/2004 22 December 2004

The Corporate Body today issued the following statement:

“We have been made aware that legal proceedings have been initiated by Sir Robert McAlpine Ltd and another Sir Robert McAlpine company, who are seeking to challenge the process by which the Construction Manager contract for the Holyrood Project was awarded. This award process was discussed in depth during the Fraser Inquiry.

“Sir Robert McAlpine Ltd are claiming for the sum of £4.31m, a substantial sum that would have to be found from the public purse if this action is pursued and is successful. If the SPCB and Sir Robert McAlpine Ltd come to court over this matter, the case will be vigorously contested as the best defence of the public purse.

“The procurement process was managed by the Scottish Office, with the formal EU notice posted in August 1998. The Scottish Office subsequently awarded the contract to Bovis Lend Lease (Scotland) Ltd in January 1999. This decision preceded the establishment of both the Parliament and the SPCB in May 1999, and the transfer of all Holyrood contracts to the SPCB in June 1999.”

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