Court hearing on lifting of Automatic Suspension of Contract Award

Readers may be aware that the new Remedies Directive (which came into force in December 2009) introduced a new process for challenging a contract award. Claimants are now able to automatically suspend the award of a contract simply by issuing a claim form during the standstill period. Such an automatic suspension means that the contracting authority may not award the contract until the court holds a hearing and orders the suspension to be lifted (or otherwise).

Mills & Reeve has recently been acting in what we believe is the first hearing in relation to the automatic suspension process. The supplier Indigo Services UK Limited brought a challenge against Colchester Institute Corporation (Colchester) and suspended the contract award process. Mills & Reeve acted for Colchester which has succeeded in lifting the automatic suspension imposed by Regulation 47J of The Public Contracts Regulations 2006. No written reasons are available yet as the judgment was given orally in court only this afternoon but we will post again with further details once the text of the judgment becomes available.

For further details please contact Helen Prandy of our procurement disputes team helen.prandy@mills-reeve.com.

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