Amey is disputing a decision by Transport Scotland to reject a road bid the Scottish procurement agency dubbed “unusually low”.
According to the Scottish Herald, a bid by Amey to win the maintenance contract for north-west Scotland included quotes for 1,513 peripheral tasks like grass cutting, tree-felling and street light replacing, priced at 1p.
The legal challenge has forced the procurement agency to shelve two maintenance contracts worth up to £700 million over the next ten years, while it “rigorously defends” its original decision.
A spokesperson for Tranport Scotland said: “The procurement competition for the contract to operate trunk roads in the North West and South West of Scotland from April 2013 has been automatically suspended following a legal challenge which Scottish Ministers will rigorously defend.
“We rejected the bid as being unusually low.”
According to papers seen by the Herald, Transport Scotland estimates the Amey contracy has a price shortfall of £123m.
The agency also said it was finalising “robust contingency plans” to ensure the roads work could be carried out.
Last month, the government agency said it would appoint rival firm Bear.