The Carillion writ follows the decision by Bradford Council to scrap a £1.2 billion deal to hand over its property assets to the private company in a 20 year management deal.
 
Carillion was named as preferred bidder for the authority's Asset Management Project, which aimed to bring in a private firm to run the council's key buildings including offices, libraries, theatres, swimming pools and sports centres.

However, the scheme was abandoned earlier this year, following political controversy over both the tender process itself and the way in which the council had prepared the groundwork for the deal.

Last year a report issued by district auditor Ivan McConnell heavily criticised Bradford Council officers for the management of the project.

The auditor found a raft of problems including internal resources being stretched beyond their capacity and "no effective control over the records database" which "resulted in an inaccessible and probably incomplete record of the project activities and decisions".

Now, Michael Bowness, Bradford Council's interim head of legal services, said: "Carillion has made a claim against the council for compensation and the council is defending that claim."

If the legal action fails Carillion is expected to issue further proceedings to recover the £2 million it claims it spent preparing the bid.