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MoD contractors to sell property

CONTRACTORS BIDDING for £5.25bn of new regional Ministry of Defence building refurbishment contracts could also be expected to sell off surplus buildings and property, Defence Estates said last week.

The proposals are included in plans for a series of seven year prime contracts spread across five regions - Scotland, the South West, South East, the North and Eastern regions.

Estates management work will be on top of new build, maintenance and facilities management.

DE hopes the move will make management of its property estate more efficient.

The plans will be subject to a four month consultation period ending in July.

Contractors said that contracts including estates management would, at an estimated £750M each, be too big for most UK construction companies.

They said most UK companies would either be interested in competing for subcontracts, or becoming part of possible prime contracting consortia.

'Construction firms aren't interested in things like property disposal, ' said one contractor.

DE project director Howard Lawrence agreed that most UK companies would have to be part of a consortium as they were unlikely to be diverse enough to provide the range of services it was looking for.

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