Angus taxpayers could lose out on £17,000 because a Dundee construction firm went under.
A roof refurbishment project at Bruce House in Arbroath was due to be carried out by WH Brown Construction but the business went into receivership in August.
The second-placed tender came in £16,900 higher than the failed firm’s bid and members of Angus Council’s corporate services committee will today be asked to approve the more expensive quote.
A report to committee states: ”At the time of the receivership, WH Brown Construction (Dundee) Ltd had been appointed as the successful contractor for carrying out the roof refurbishment of single-storey bays at Bruce House, Arbroath.
”The project had not commenced on site and the joint receivers have no objection to the council awarding the project to the second-placed tenderer, assuming that the council mitigates any additional costs.”
Council officers have recommended that the contract is re-awarded and still consider the second-placed offer to represent value for money.
The additional cost will be deducted from a budget relating to 12 affordable houses that Brown has already built at Carnoustie and Monifieth. The project was completed on December 2 last year and is in the defects liability period which expires at the end of November.
Meanwhile, the liquidation of Thomson & Douglas in Kirriemuir could mean further expense to the Angus purse.
The company ceased work on all council projects on July 3, while in place as contractor for urgent repairs and maintenance in Carnoustie and Monifieth.
An estimated £2,400 fee is likely to be incurred for replacing the firm and a further outlay may follow.
Alan Mitchell, chief executive of Dundee and Angus Chamber of Commerce, said: ”We cannot comment on the specifics of these two cases but when a business closes down some of its suppliers or customers, public and private sector, will lose out financially.”