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Media Releases
2006

12 October
2006

Glasgow City Council LLP

New LLP Creates Scottish First for Glasgow City Council.  Shepherd and Wedderburn team forecast others will follow.

Glasgow City Council’s decision to establish a limited liability partnership to replace its Direct Labour Organisation has created more than 120 new jobs and a first within the local government sector in Scotland.

The new businesses – City Building (Glasgow) LLP and its sister business, City Building (Contracts) LLP – will now be in a position to bid for new contracts and early estimates suggest the workforce will swell to almost 2,300 as a consequence.

Shepherd and Wedderburn partner, Liz McRobb, led the legal advisory team on the project, working with both the Council and the new organisation’s managing director, Willie Docherty, to ensure the smooth transfer of staff and equipment over a four-month period.

“Glasgow City Council is the first, but will not be the last local government authority in Scotland to take this significant step, having taken a long hard look at how they best maximise the resources within their direct labour organisations," said Liz.

“The LLPs will be commercially focused vehicles which will not only be in a position to seek new or repeat business from the Council and the Glasgow Housing Association, but will also have the capability to tender for work in the growing property sector in Glasgow and the central belt.”

The former building services division was responsible for the maintenance and investment projects for both the Council and the Glasgow Housing Association and officials say the transfer will safeguard jobs. 

Councillor Gerry Leonard, who chairs the new partnership, said: “This has been a unique legal process carried out with great dedication and efficiency by Shepherd and Wedderburn which will help to move our business to the next level.

“We’re confident that City Building (Glasgow) has strong foundations which will help us to build an even more successful future.”

The business transfer agreement document was completed on Friday, 6 October.  The workforce was fully consulted throughout the process.

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