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Transfer of Undertakings

  • 13-04-2011 10:40am
    #1
    Harmar
    Registered Users, Registered Users 2 Posts: 3 ✭


    Our company has been verbally agreed a contract with Dublin City Council. We applied for this contract through Etenders. With the current economic situation we priced all our items of services to a very low rate in order to be awarded this contract. I have not signed the contract yet but have now been advised by the present company that we will have to employ their employees and sub-contractors. This would financially cripple us financially before we even carry out any works as some of the employees of the previous company have been working on this contract for up to 15 years. We would have to continue paying them rates of pay of which are higher than our agreed rates with Dublin City Council. The existing companies rates were over 30% higher than ours so this was the reason they have lost the contract. Since from what i have read they have a good claim it almost seems the present company has a contract for life. This was an open tender through the Etenders but seems that there is nothing open about it. We will now have to pull out of this contract. If anyone has been in a similar position i would appreciate your views


Comments

  • #2
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    I can't see why you would have to employ their subcontractors. It is really the employees that you might be concerned about.

    A lot depends on the nature of the work. Do they work solely on the council's job? If they work on other jobs as well, then it is less likely that it is a TofU. If you are a member of ISME or IBEC, you might talk to them.

    You are going to need some legal advice.

    You might be able to get DCC to indemnify you in relation to TofU matters, although I doubt it.


  • #3
    ssbob
    Registered Users, Registered Users 2 Posts: 2,736 ✭✭✭ssbob


    Harmar wrote: »
    Our company has been verbally agreed a contract with Dublin City Council. We applied for this contract through Etenders. With the current economic situation we priced all our items of services to a very low rate in order to be awarded this contract. I have not signed the contract yet but have now been advised by the present company that we will have to employ their employees and sub-contractors. This would financially cripple us financially before we even carry out any works as some of the employees of the previous company have been working on this contract for up to 15 years. We would have to continue paying them rates of pay of which are higher than our agreed rates with Dublin City Council. The existing companies rates were over 30% higher than ours so this was the reason they have lost the contract. Since from what i have read they have a good claim it almost seems the present company has a contract for life. This was an open tender through the Etenders but seems that there is nothing open about it. We will now have to pull out of this contract. If anyone has been in a similar position i would appreciate your views

    Hi When submitting your tender, this would have been part of the tender, ie. that there are preferred suppliers, therefore as part of your tender, you had an obligation to go to these subbies and get a price for the work to be carried out. In too many cases, have we seen Public contracts given to private contractors who are just taking the lowest price and cutting 20% off it, what has happened is that a number of big companies were trading insolvently and the next job was paying for the last etc.

    If it was a case that this was not part of the tender, then you will need to speak with DCC and explain the situation to them.

    If you have not signed the contract yet, then don't if you are going to end up in a loss making situation.


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