The Court of Session in Scotland has cancelled a public contract between Inverclyde Council and Amey Public Services (APS) after a second supplier presented a legal challenge against the local authority.

It is the first time a UK court orders the termination of a contract following legal action from a supplier.

APS and the council entered a deal for the provision of street light services last year, after a public bid under the Crown Commercial Services framework agreement, despite the fact that APS was not included in the framework agreement as a supplier. Amey OW (AOW), a company from the same group as APS, was.

One of the listed suppliers, Lightways, took the local council to court for illegally awarding the contract directly.

In spite of Intercycle’s claims that the offer to APS was a simple mistake and that the deal had always been intended for AOW, the Scottish court interpreted the error had not been a simple “mis-designation” and declared the contract as ineffective.

Intercycle is set to appeal the court’s decision.

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