Thursday 23 May 2019

Luas firm in legal battle over tender omission

STT Risk Management says the €150m contract to operate the Luas includes €15m for security services over a five-year period. Stock picture
STT Risk Management says the €150m contract to operate the Luas includes €15m for security services over a five-year period. Stock picture

Tim Healy

A firm which has provided security on Dublin's Luas since 2009 claims the operators of the network wrongfully left them out of the tender process for the contract to continue operating the service.

STT Risk Management says the €150m contract to operate the Luas includes €15m for security services over a five-year period.

Please log in or register with Independent.ie for free access to this article.

Log In

It has brought High Court proceedings against the operators, Transdev, claiming it was obliged to include STT as a subcontractor for security as part of its (Transdev's) bid for the contract to operate the network for the next six years.

It seeks, if necessary, an injunction preventing Transdev from progressing the tender other than with STT as security contractor.

Among the orders and declarations it seeks is that Transdev pay STT the profits from the successful tender. It also seeks damages for breach of contract, negligence and breach of duty.

The case was admitted to the fast-track Commercial Court list yesterday on consent between the parties by Mr Justice Robert Haughton.

The process to choose an operator, with an option to extend for a further five years, for a contract starting in September next (2019), is the responsibility of Transport Infrastructure Ireland/National Transport Authority.

STT director Ted O'Connor says in an affidavit that in May 2017, STT and Transdev entered a memorandum of understanding for the purpose of collaborating in the tender process.

STT provided confidential information to Transdev and co-operated fully in preparation of documentation, Mr O'Connor says.

In February STT learned Transdev was proceeding to tender without it, he says.

STT sought an undertaking the tender would not be submitted without it, but it was refused.

Mr Justice Haughton was told directions on how the case should proceed had been agreed.

He was also told there may be an application for security of legal costs by Transdev against STT.

Irish Independent

Also in Business