A COUNCIL is ready to launch a full review of how it awards contracts to companies tendering for business.

The recommendation comes as Stoke-on-Trent City Council is to repeat the tendering process for two landmark jobs; the demolition of the former Westcliffe Hospital in Chell and work to flatten Hamilton Training Centre in Fenton.

Officers are recommending the authority asks for new bids after it emerged lower tenders were overlooked.

The report to the cabinet recommends that the deal to flatten Westcliffe is retendered after a quote of just over £309,000 was dismissed. London-based contractor Brown & Mason had been identified as the preferred bidder out of seven short-listed firms, despite quoting a price of £1.1 million, which was three times higher than that of a rival.

And a £16,500 signed contract for the demolition of Hamilton House Training Centre is due to be terminated after it emerged that numerous local firms submitted lower bids.

The report, which will be presented to the cabinet next Wednesday, calls for an urgent review of the council's tendering procedures and recommends that 'appropriate training' is made compulsory for all staff involved in tendering.

Firms originally favoured for the contracts will now be offered the chance to bid again.

But Terry Brown, managing director of Brown and Mason, said his firm would not reapply.

He said: "We won't be bidding again. How can we? We have spent a lot of time pricing up the job and now everybody in the country knows our price. I was assured on the phone dozens of times that the work was ours. We started working on it last Christmas – I have wasted a year on this job. The council should stick to their own rules."

The demolition contract for Hamilton House has already been signed and preparatory work has begun at the site. The council is entitled to withdraw the contract until full works begin but will have to cover the cost of work already undertaken, believed to be around £6,000.

Phil Crossland, head of the transportation and planning services at the council, said he understood the firms' frustrations.

He said: "I have explained to them that because of the concerns raised we had to look into the tendering process and that it would not have been sound to proceed. I've offered both of them the chance to come and have a discussion with us."

Council leader Ross Irving said the review and retendering are moves to repair public faith.

He said: "I want to ensure we instil confidence that our procedures are above board and that we are seen as delivering value for money."

But councillor Alan Rigby, pictured, who demanded an audit into the tendering process after highlighting the price differences in bids, said he fears the two resolved cases may only be the tip of the iceberg.

He said: "I shall be asking the cabinet how many they cases intend to investigate."

The council's improving communities overview and scrutiny committee has confirmed it no longer objects to the demolition of Westcliffe Hospital, though it would like certain features to be preserved.