Housebuilder Fairview New Homes is being sued for 拢538,000 by a subcontractor on a project in Welwyn Garden City, Hertfordshire.
M Bliss, a Northamptonshire-based brickwork contractor, is alleging that Fairview unfairly cancelled a 拢1m deal for work at site in the town in August 2002.

The writ said that Bliss' managers met with Fairview employee Michael Craft, and provided a tender and completed other documents required by the company.

The writ said: "Bliss directors Michael and Keri Bliss met Fairview's Michael Craft and two others on 21 October 2002, discussing the precise scope of the proposed works, including forklifts, birdcage scaffolding and rubbish chutes."

The writ said that as the meeting ended Craft had said he was satisfied with the information provided by Bliss, that it had got the job, and that Bliss and Craft had shaken hands on the deal.

However, it is alleged that three days later, Craft phoned Bliss to say Fairview's managing director had countermanded the agreement and that it was therefore cancelled.

The writ said that Bliss had not been told that its tender had to be approved at a higher level, nor that its offer would be accepted only when a formal written tender was placed.

Bliss and Fairview were unavailable for comment.