Local rumours that the difference between the winning bid for the recently-awarded main works at Lews Castle and the runner-up was just £20,000 are complete nonsense, according to a response from Western Isles Council.
This blog had appealed for information from people with knowledge of the facts. Various people responded about what they had heard someone say. No one seemed very sure of anything. It was all hearsay.
However, that appeal prompted the council this morning to respond with the following short clarification – after it had gone away to do its sums. The council statement said: “The difference between the successful tender and the second placed was £627,733 – not £20,000.”
UPDATE - The council has now agreed to my request for the relevant figures:
The winning Graham tender was £8,512,000. The second-placed consortium tender was £9,139,000.
I appreciate that 600k is alot of money, however a good portion of that money would have stayed on the island -a positive for this economy, and I believe as others do that Neil has proved himself with the Patton fiasco and accountability is just a important, as well he is island based HERE, not in Northern Ireland. Who knows he may have saved 600k off the tendered price, best value isn’t always ££ look at the schools.
Tracey makes a very valid point. If the contract had gone to an island company, the profits would have stayed on the island, and more local workers would have been employed and, possibly local suppliers would have benefited too. This would have benefited the island far more than the contract going to a foreign company. Our council seem not to appreciate, or care about these facts; facts which I believe they are allowed to take into consideration when awarding contracts.
Ii remains a remarkable coincidence that so many council contracts seem to go to Irish companies.
No doubt Graham also has the same late payment policy as other large main contractors have. They will get paid on time by CnES but will they pay their sub-contractors likewise?
It is very sad to see an iconic project like this going to an overseas company, the council have in my eyes missed out on a huge opportunity to make a lasting and long term investment in the local economy.
@Gus everyone taken on as subbys paid p.a.y.e. rate minus overtime plus when they go bust the dont have to pay up. see it
Iain. Large contractors have a bad reputation for delaying payments to specialist sub-contractors, particularly in these tough times. They have also been known to win work at a negative margin with the view to make a profit by under valuing sub-contractors valuations and other underhand tactics. Hopefully Graham Construction do not fall into this category.
Re: Iain – That sounds like a plan & maybe Neil can get the crumbs from that as well