North East efficiency body rebids £360m framework

Aaron Morby 12 years ago

More than 40 firms have wasted more than a year bidding for The North East Improvement and Efficiency Partnership’s construction framework.

The North East Procurement Organisation has been forced to rip up previous bids after legal advice warned the whole award process was vulnerable to challenges from failed bidders.

Councils in the north east had hoped to make big savings and reduce the time to market for appointing contractors, saving £35m over the four-year term on new building work in the region.

But procurement chiefs said big variations in pricing schedules submitted by contractors have made the whole process difficult to evaluate, despite many attempts to clarify bids.

Now they are rewriting bid documents to precisely spell out how mini bid competitions will be conducted under the framework, which is expected to be used for around £90m of projects each year.

Prequal submissions from more than 80 firms were received way back in April 2011 with around 40 moving to the more detailed evaluation and award process, due to complete in April this year.

But the bid race has dragged on and now Gateshead Council, which is handling the procurement race, has told contractors they will have to rebid and submit new PQQs.

A statement to contractors from Gateshead council said: “The Council does appreciate the time and effort spent in preparing and bidding for a procurement of this nature and trusts you appreciate that the council has no alternative but to arrive at the decision to terminate the process.

“The evaluation of price was much more difficult than envisaged and there had to be several rounds of clarifications with tenderers.

“This resulted in the conclusion that prices could not be compared on a like for like basis, legal advice was sought on the likelihood and nature of a challenge from an unsuccessful tenderer.”

The council said a new prequalification race would start before the end of the year. It said it was going right back to inviting PQQs because the standing of many firms will have changed over the last 18 months.

In the meantime, some projects that would otherwise have been tendered under mini-competitions under the framework will need to be tendered on a standalone basis.

Framework lots up for grabs

Lot 1 £2m + Construction Only North East Region
Lot 2 £2m + Design and Build North East Region
Lot 3 £0 – £2m Design and Build Northern Region
Lot 4 £500k – £2m Construction Only Northern Region
Lot 5 £0 – £500k Construction Only Northern Region
Lot 6 £0 – £2m Design and Build Southern Region
Lot 7 £500k – £2m Construction Only Southern Region
Lot 8 £0 – £500k Construction Only Southern Region

Latest news

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
47 mins ago

25 groundworks firms win £100m Places for People deal

M&J Evans, Carmac and Churngold Construction feature housing association's line-up
51 mins ago

Energy efficiency firms angry at lack of CITB support

SME contractors funding bid "does not meet the current criteria for supporting productivity or EDI"
59 mins ago

£400m South Cambridge science park approved

Outline approval allows former sewage treatment works to be demolished
47 mins ago

McLaren gets green light for 45-storey Leeds tower

Landmark Wellington Square scheme will see 464 flats built with 360,000 sq ft of offices
3 days ago

Heavy rain causes 1.9% construction output fall

Hopes remain undampened of a resi-led recovery this summer
3 days ago

Taziker restruture to return to profitability after £1.2m loss

Founders bought the business back from private equity after last year's loss
3 days ago

£220m London wharf homes scheme approved

285 homes to be built beside protected Albert and Swedish Wharves in Wandsworth
3 days ago

Major project veteran named civils director for Sizewell C

David Speight previously worked on Hinkley, Heathrow and HS2 client teams
3 days ago

Morgan Sindall lands £19m Milton Keynes hospital job

Crane lifts to be carefully co-ordinated to ensure air ambulance remains active
4 days ago

Clancy bolsters civils leadership team

Daniel Tonkin and Simon Hyams join as operation directors of water and infrastructure
4 days ago

Balfour names new project boss for HS2’s super-hub station

Steve O’Sullivan replaces Nigel Russell who was promoted to CEO of Balfour's HS2 ops
4 days ago

Buckingham Group supply chain hit doubles to £256m

Total owed to unsecured creditors soars as surety providers finalise claims
4 days ago

Builders demand an end to police plant bans

Call to suspend all embargoes on moving mobile cranes and large site kit
4 days ago

Green light for £65m Blackpool multiversity campus

Education campus of 350,000 sq ft will be delivered in phases
4 days ago

Vinci signs £138m Sheffield steel forge expansion deal

Sheffield Forgemasters signs landmark contract after two years of pre-construction works
5 days ago

McAlpine hires HS2 programme boss to head defence arm

Armed forces logistics expert Mike Hickson takes role as MD of defence
5 days ago

£200m carbon capture plan for Deeside site

Energy from waste operator enfinium looking to invest in North Wales plant
4 days ago

McAleer & Rushe promotes five staff to contracts directors

Design and build contractor targets £500m revenue next year
5 days ago

Consultant quartet win Government estate upgrade deal

Government Property Agency selects Arcadis, Tetra Tech, AtkinsRéalis and McBains
5 days ago

Resi towers pioneer to transform Liverpool site

Beetham founder Hugh Frost to help develop 1,200 new homes
6 days ago

Construction Manager of the Year crowned

Galliford Try's Barry Kingscote wins coveted prize: Full list of winners
5 days ago

Landsec £250m London terraced office job approved

Skanska tipped for 20-storey Hill House scheme near Fleet Street
5 days ago

Lendlease tops March contracts league

BAM and ISG rank third with big contract wins
5 days ago

Vistry strikes deal with Homes England for 1,000 units

Firm's timber frames factory will supply most of the Midlands houses
5 days ago

Morgan Sindall go-ahead to build 23-storey Salford resi job

Funding deal with CBRE allows latest project on bank of River Irwell to proceed
6 days ago

Unite Students gains planning for London and Bristol schemes

RG Group will build landmark Stratford tower and Freestone Island projects
6 days ago

Rolls-Royce gets go-ahead for 1.1m sq ft expansion in Derby

Major expansion of Raynesway campus planned to met submarine fleet orders
6 days ago

GMI Construction edges back into profit

A year of controlled consolidation helped generate £0.9m profit but cash at bank dropped to £10m
6 days ago

Balfour gets final sign-off for HMP Highland at £209m

Deal struck for delayed Inverness prison after costs rocket
7 days ago

Contractor services