Law Society fears "race to the bottom" with competitive tendering in housing duty contracts

The Law Society has said it has “considerable concerns” about the Legal Aid Agency's proposed introduction of price-competitive tendering for housing possession court duty schemes.

The Law Society said that duty scheme contracts were issued on the basis that there was only one for each court, and that therefore the process had to be competitive. However, the LAA has now said it has to be price-competitive.

Law Society President Robert Bourns said: "We see considerable problems in price-competitive tendering - the cheapest offering will not necessarily be the best. This could result in a race to the bottom which may impact on professional standards. A price war will not improve services and could negatively impact on clients.

"The LAA needs to set out what steps it will take to mitigate this risk. It should also keep in mind that cuts in payment only compound years of cuts for the solicitors that look after the interests of our most vulnerable citizens. It may mean that contracts which are already at best only marginally economically viable for firms become unsustainable."

The proposal is part of new rules for solicitors' firms wishing to tender for 2018 civil legal aid contracts, which were otherwise welcomed by Chancery Lane. A LAA consultation on the plans runs until 17 March.

Bourns said: "In the bulk of cases, contracts will be awarded to those firms that match the LAA's stipulated standards and this is something we can welcome as it helps underpin quality."

The LAA published its headline intentions for the 2018 civil contracts on Friday – the Law Society said that for most categories there was no significant change from the previous tender process or the contract terms.