17 Dec 2013

Defence contracts awarded for UK construction projects

Summary: The Defence Infrastructure Organisation (DIO) has appointed five companies for the design and build of up to £400m worth of defence construction projects across the UK defence estate.

Contracts have been awarded for the National Capital Works Framework – delivering projects each valued at up to £50m – to: Balfour Beatty; Carillion; Kier Graham Defence Limited; Miller Construction Ltd; Wates Construction Ltd.

In total there will be seven Capital Works Frameworks, which comprise of six regional and one national framework.

The Frameworks will introduce the use of Building Information Modelling (BIM) and the nec3 form of contract as cited in the Government Construction Strategy. Capital Works Frameworks will also champion prompt payment principles through the use of project bank accounts and other initiatives, as well as incorporate effective performance management, continuous improvement and benchmarking arrangements.

Defence construction projects

The National Framework will operate alongside the regional frameworks and can be utilised at any defence site across the UK. It allows for the delivery of a diverse range of high-value, technically complex construction projects, as well as for projects that need to be delivered across regional boundaries.

Each individual project will be valued up to £50m. The total value of the Framework is worth up to £400m over an initial four-year period, with the option to extend by up to a further three years. For projects above £50m other procurement options will be considered, including standalone contracts or Private Finance Initiatives.

Defence Infrastructure Organisation

DIO is responsible for managing and maintaining land and properties to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations.

Matt Foley, the Head of Next Generation Estate Contracts, said: “I am pleased to welcome the successful contractors to the National Framework. The NGEC team is confident that the companies selected will meet the high standards required on the defence estate.”

In addition to supporting other requirements, the Frameworks will be used to procure a significant proportion of work in support of military rebasing up to 2020.

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