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Defence Estates consolidates contracts

CLIENT DEFENCE Estates is to cut the number of contracts making up its annual £1bn worth of construction and maintenance work, it emerged this week.

The government agency responsible for managing all Ministry of Defence property said this week that a review to be completed by February could reduce the number of regional packages to eight. It is hoped that the move towards fewer, larger regional prime contracts will lead to economies of scale.

Under DE's regional prime contracts a single company, probably a specially formed alliance, will be responsible for managing all construction, facilities management, operation and maintenance of DE assets.

The largest of the original regional contracts announced in March was valued at £300M£400M. Biggest of the enlarged contracts is likely to be almost double that, said Pearson.

DE is in the process of tendering the first of its regional prime contracts for Scotland, excluding the Clyde. It is sticking to its original programme for full implementation of prime contracting by 2004, rolling out a series of capital works and capital maintenance contracts over the course of next year.

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