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HIE GETS VALUE FOR MONEY IN PROPERTY CONTRACTS

15th May 2007

Highlands and Islands Enterprise (HIE) has extended two contracts through which all of its new properties are built, after an independent report gave it a five star value-for-money rating.

The network's board was told at its public meeting in Thurso today (Tuesday May 15) that the contracts had been awarded in 2004 following a decision the previous year to make HIE's method of property procurement more efficient. Following a Europe-wide tendering exercise Tulloch plc won a four-year agreement to provide construction services across the network and Synergie Scotland Ltd won a three year contract to be prime consultants. The contract with Tulloch has subsequently been assigned to Rok Building Ltd following Rok plc's purchase of Tulloch's construction division in 2006.

Both contracts carried an option to be extended by a further two years.

By March 31, 2007, the companies had provided £35m of property work and an independent evaluation of their success was undertaken at the end of last year. The scheme, says the external report, has been a great success with tangible value-for-money benefits and other improvements which meet with HIE's objectives. The report strongly recommends that HIE take up the option to extend both contracts.

Keith Bryers HIE's head of property and infrastructure said: "Relatively few government-funded bodies have so fully engaged in the opportunities of the modern construction agenda as HIE. It has been a challenge for us but this external review proves we made the right decision. I'm delighted to be able to extend these contracts and look forward to continuing to work with Synergie and Rok."

Mark Douglas, commercial manager for Rok Building Ltd said: "We are pleased to have been involved in the delivery of HIE's new procurement route over the past three years. We believe that HIE are leading the way in their approach to the procurement of public sector buildings and we look forward to continuing and developing this successful partnering arrangement which has been endorsed by the independent review."

Ian MacGillivray, Managing Director of Synergie Scotland said: "As a company with our headquarters in Inverness, we are proud to have managed projects across the whole of the HIE network area that have consistently been completed on time and within budget.

"The programme of works, which has over 70 live projects at any time, has been the most challenging contract undertaken by Synergie since its establishment in 2001. The innovative partnership approach used by HIE in the traditionally confrontational construction sector has worked well and we look forward to continuing success with HIE and Rok over the remaining contract period."