Builder kept off PEH job

MINISTERS have blocked R. G. Falla from a £25m. hospital contract because they were worried the building firm had too much States work. It tendered to build the new clinical block, but withdrew after the Policy Council intervened even though its tender was £2m. cheaper than that recommended in the Health and Social Services Department's report.

The Public Accounts Committee has called for an investigation and wants tomorrow's debate delayed while it is carried out.

'The committee wishes the States to be aware of the facts in an open and transparent way so that value for money is assured,' said PAC chairman Leon Gallienne yesterday.

PAC believes interested tenderers were never told that the total volume of States work awarded to a single contractor would be taken into account in the selection process.

Health minister Peter Roffey said that his department had played the whole process with a straight bat.

'We wanted to put forward the lowest tender we received and were very disappointed that it had been withdrawn,' he said.

'I am very happy about the PAC investigation and will co-operate fully. I am sure that any inquiry will show that the HSSD has behaved impeccably.'

But he was concerned that its involvement could mean a delay.

'This work has been hugely delayed already and the tender we have put forward has a drop dead date of January. I could understand the delay if there was to be a £2m. saving, but there can't be.'

Deputy Roffey said that he was confused as to why R. G. Falla - which could not be contacted for comment yesterday - had withdrawn its tender.

He said the department's legal advice was that the only way it could be considered now was if there was a fresh tendering process.

He also has concerns that the States might spend too much time considering the politics of the tendering process instead of concentrating on the overdue and desperate need for the clinical block.

In its report, the department has put forward the tender from Charles Le Quesne (Gsy) Ltd. of £26,974,565.31, which is described as 'very competitive' and below the pre-tender estimate.