§ Mrs. RoeTo ask the hon. Member for Roxburgh and Berwickshire, representing the House of Commons Commission, if he will make a statement on the matter of Harmon CFEM Facades (UK) Ltd.v. The Corporate Officer of the House of Commons. [95880]
§ Mr. KirkwoodA Judge of the Technology and Construction Court has found the Corporate Officer of the House of Commons liable for damages in relation to its decision to award the external cladding package for the New Parliamentary Building to an Austrian/British company, Seele Alvis.
The Commission is concerned by the Judge's finding that the project team unlawfully promoted a "Buy British" policy. Given the liquidation of Harmon in March 1998, the House would have been put in a disastrous situation if the contract had gone to them. Another contractor would have to have been found which would have caused delay to the project and would have meant major financial loss, estimated to be an additional £12 million, on a project which is on time and under budget.
The Judge has held that Harmon is entitled to recover its tender costs (claimed at not more than £438,000) and any profit it can prove it would have earned. These are to be determined at a later hearing. The Judge has said that the fact that Harmon went into insolvent liquidation during the period it would have carried out the contract, cannot be ignored.
Advice on the grounds for appeal is being sought.