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ARTICLE · 11 AUGUST 2026

Public Procurement Update: Failure To Offer An Undertaking For Damages A Factor In Lifting Automatic Suspension

The Irish High Court has signalled that incumbent tenderers who benefit financially from automatic contract suspensions may face scrutiny if they refuse to offer undertakings covering losses to winning bidders. In a €51.2 million parking enforcement framework case, the Court lifted the suspension after the losing incumbent declined to compensate the successful tenderer for costs of securing a time-sensitive resource underpinning its bid.

IrelandLitigation, Mediation & Arbitration

The High Court in Ireland lifted an automatic suspension of a contract award in Q-Park Ireland Ltd and Dublin Street Parking Services Ltd v Dublin City Council [2026] IEHC 552. In doing so, the Court signalled that an incumbent/losing tenderer’s failure to offer an undertaking as to damages to the notice party (winning tenderer) can weigh against continuing the suspension.

Background

Dublin City Council (“DCC“) ran a framework competition for on-street parking enforcement services, worth €51.2 million over five years (with a two-year extension option). Q-Park (the incumbent) and APCOA tendered for Lot 1, and APCOA won. Q-Park, the losing incumbent whose existing seven-year contract was due to expire on 31 July 2026, challenged the tender award, triggering the automatic suspension. DCC extended Q-Park’s existing contract, initially to 31 October 2026.

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