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MOD shortlists 10 firms for £400M of UK construction projects

Ten contractors have been invited to tender for five places on a new £400M framework agreement to deliver construction projects across the UK Defence estate.

The companies shortlisted for the framework by the Defence Infrastructure Organisation (DIO) are:

  • Balfour Beatty
  • Bam Construction
  • Carillion
  • Interserve
  • Kier Graham
  • Lend Lease Construction
  • Miller Construction (UK)
  • Morgan Sindall
  • Skanska UK
  • Wates Constructio

The National Capital Works Framework 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. It is due to be awarded before the end of 2013 and will run for an initial four year period, with the potential to extend for up to three years.

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.

Last month, the shortlisted companies attended a bidders’ conference at the Defence Academy in Shrivenham focused on the tendering process and on the proposed operating model for the framework. Delegates were also taken step-by-step through a typical Defence construction project, looking at the processes involved, legislative influences, sustainability and other requirements.

Each tender will be rigorously evaluated based on the company’s approach to commercial and technical matters such as supply chain management, quality assurance, sustainable development, health and safety, and issues relating to the Government Construction Strategy. The tenderers have also been provided with a demonstration construction project and will be evaluated on their proposed approach to its delivery.

Steve Rice, head of the NGEC programme, said: “Changes to UK military basing arrangements are expected to generate requirements for new capital works in the years ahead, and it is vital these are met flexibly and cost-effectively, enabling us to provide a Defence estate which meets military needs and supports our Armed Forces. 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.”

BIM required

Jon Wooden, NGEC capital works frameworks project manager, added that for all projects contractors will be required to use systems that meet UK government requirements for Building Information Modelling (BIM)

“The NGEC Capital Works Frameworks are designed to support the Government Construction Strategy by reducing costs, improving value for money, and incorporating measures such as the NEC3 form of procurement, more focused performance management, and continuous improvement mechanisms,” he said. “For all projects contractors will be required to use systems that meet UK Government requirements for Building Information Modelling.”

The framework contractors will also be required to observe fair payment practices and - where decided appropriate on a project-by-project basis - project bank accounts will be set up to ensure prompt payment for all supply chain companies involved.

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.

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