13 Dec 2012

MOD invites tenders for UK construction projects

The Defence Infrastructure Organisation (DIO) has invited ten private sector companies to tender for a new framework agreement to deliver construction projects across the UK defence estate.

The National Capital Works Framework, designed to support the Government Construction Strategy by reducing costs, improving value for money, and incorporating measures such as the ‘NEC3’ form of procurement, will be used for the design and build of construction projects up to a value of £50m.

It will include up to five companies who will participate in ‘mini-competitions’ for individual projects.

The framework forms part of the DIO Next Generation Estate Contracts (NGEC) programme and will operate alongside six regional capital works frameworks for projects valued below £12m. It has an estimated value of between £250m and £400m over the four-year period and could be used at any site across the UK estate.

The shortlisted companies attended a bidders’ conference at the Defence Academy Shrivenham, focused on the tendering process and on the proposed operating model for the framework.

Shortlisted companies for the framework include: Balfour Beatty Group Ltd; BAM Construction Ltd; Carillion Construction Ltd (trading as Carillion UK Construction); Interserve Construction Ltd; Kier Graham; Lend Lease Construction (EMEA) Ltd; Miller Construction (UK) Ltd; Morgan Sindall plc; Skanska UK plc; and Wates Construction Ltd.

Steve Rice, Head of the NGEC Programme, said: “Early in the NGEC programme our research determined that framework arrangements were the best mechanism to achieve this, and I am delighted that we have such a strong field of companies in the competition.”

Tenders are due to be returned by mid-February 2013 and it is expected that the National Capital Works Framework agreements will be awarded before the end of 2013.