By Steve Bargeton, political editor

BUILDING GIANT Sir Robert McAlpine Construction Management Ltd yesterday launched a £4.31 million damages claim against the Scottish Parliament.

The firm is suing for lost profits, interest on the damages claimed and the expenses of the action.

In an action in the Court of Session, McAlpine claimed the project breached European regulations and said that it should have been awarded the contract, which would have realised it a profit of £4.31 million.

The Scottish Parliament Corporate Body (SPCB), the group of MSPs in charge of operational functions at Holyrood, is contesting the action.

Both sides appeared before Lord Clarke in the commercial court and were allowed to adjust their pleadings. Richard Keen QC, for McAlpine, indicated that “an additional defendant” might be brought into the action.

“There may be certain material developments in the pleadings which could have implications (regarding) the transfer order under which the Scottish Parliament Corporate Body assumed responsibility for the contract of the project for building the Scottish Parliament,” he said.

Gerry Moynihan QC, for the SPCB, said there was still “some uncertainty” between the two sides as to the basis of the tendering process—whether “highest price or economically most advantageous.”

“As far as the defence are concerned it’s the most economically advantageous,” he said.

He said the question of the legal action being time-barred was “the most significant issue” to be dealt with.

McAlpine claims that the “sole criterion” for the award of the contract was bound to be lowest price.

The firm said in its summons, “The defender (SPCB) was bound in the circumstances to accept the lowest tender. The pursuer (McAlpine Construction Management) was the lowest price tenderer.”

McAlpine claims Bovis, the company that won the contract for the construction of the new parliament building, was permitted to alter an aspect of the financial basis on which it submitted its bid and that that opportunity was not given to rivals.

McAlpine was one of four firms invited to tender for the management contract for the Scottish Parliament project.

The SPCB denies that McAlpine has a valid claim and maintains the action has been brought too late.

A preliminary hearing is set for March 23.