National Grid looks to ditch contractor alliances

Aaron Morby 12 years ago
Share

National Grid Electricity Transmission is considering a major shake-up of procurement for its massive overhead powerline construction programme.

The power supply company is considering dropping its massive alliance arrangements with contractors and return to individual design and build contracts.

National Grid hopes the shift back to traditional engineer, procure and construct deals with contractors will deliver big savings as competition hots up and big international firms are lured in.

The firm stressed it would keep its options open until existing alliance agreements with its 15 contractors are due to be renewed in 2017.

But procurement bosses have also gone ahead with the plan and invited contractors to prequalify for a new £2.5bn framework to deliver EPC contracts.

It aims to select around six consortia to bid for individual contracts over a four year period.

The aim is to run this tandem with the existing alliances, with over-head powerline work carved up between both procurement routes.

A source told the Enquirer: “The move has surprised many. But with big cost efficiencies expected over the next control period, National Grid are looking at what savings can be made through a more traditional route.”

“The hope is major international companies will be drawn in by the promise of big contracts and deliver greater value for money.”

The move will be greeted with concern among the major contractors who are counting on large steady stream of work from NGET.

One contractors said: “The whole move seems to fly in the face of conventional wisdom. It feels like we are going back to the future.”

Earlier this year Balfour Beatty signed a five-year contact extension worth around £750m under the Electricity Alliance East partnership.

While joint venture partners Amec and Babcock took a £650m deal for the Electricity Alliance West framework.

Other major partners include a Morgan Sindall and Vinci Energies joint venture and Carillion.

Latest news

£125m cash injection for infrastructure at Barking Riverside

Home England funded works to boost 20,000-home development in east London
16 hours ago

Management buyout at joinery specialist TMJ Interiors

Founder James Taylor hands over reins to directors
16 hours ago

Guinness Partnership starts race for £1bn housing deal

Housing association to renew preferred firms for 15-year housing retrofit programme
22 hours ago

Rockwool plans new factory to ramp up output

Stone wool maker plans second factory in Midlands
1 day ago

McAleer & Rushe wins London City 670-room student job

Dominus confirms builder for 65 Holborn Viaduct
22 hours ago

Electrician caught abusing covid loans

Middlesbrough spark subject to seven years of stringent bankruptcy restrictions
22 hours ago

Wates hires Bouygues chief as MD for residential arm

Phillippa Prongue will replace Helen Bunch who retires
2 days ago

Civils powers on but house building falters

Buyers report "solid output growth" despite decline from record September
2 days ago

Multiplex tops October contracts league

£300m Glasgow Uni win tops big new orders
2 days ago

Key industry rebar supplier loses fight to stop factory closure

Kent rebar facility supplying 30% of UK rebar set to close
2 days ago

Vital Energi/Hemiko JV to build £1bn heat network for Westminster

Heat captured from the River Thames, Tube and sewers to warm Parliament
2 days ago

Plans in for Birmingham 300-bed student scheme

China Quarter stepped project will rise to 15 storeys
2 days ago

United Living looking to continue expansion

Record results as infrastructure and property spending flows
2 days ago

Paralysed builder stranded on floor for six hours after fall

Court hears how contractor failed to properly plan housing job
2 days ago

Network Rail scales back Liverpool Street station scheme

Architect changed and developer Sellar dropped as £1.5bn original plan scrapped
3 days ago

Muse JVs with pension fund insurer to build 3,000 homes

New Habiko business will build affordable low carbon, rental homes
3 days ago

£1.3bn revamp plan for South London shopping centre

Landsec plans 1,700 homes at Lewisham shopping complex site
3 days ago

Network Plus names new chief executive

Kevin Fowlie steps up to succeed founder Dan Holland
3 days ago

TanRo lands latest Clowes business park

Groundworks due to start in new year at 31-acre Harrier Park site
3 days ago

New consultant buys M&E specialist TACE

Contollo Group has ambitious growth plans over next five years
3 days ago

Skanska signs £197m deal for Mayfair offices job

South Molton job consists of two big office buildings
4 days ago

Cost of fixing unsafe cladding soars to over £16bn

Watchdog urges new 'hard target date' to complete all recladding works
4 days ago

Scottish Water opens bidding on £800m framework

Innovative ceramic membrane water treatment works programme
4 days ago

Carbon capture concrete hits London sites

Neustark and Aggregate Industries launch new technology to UK market
4 days ago

Six win £300m cladding retrofit deal

Major social landlord Riverside Group to reclad 22 towers
4 days ago

Winchmore lands brickwork package on Graham £80m academy

Alkerden Academy is one of the largest schools to be built in the region
4 days ago

Construction firms blast “true cost of Budget”

Firms fear tax hikes will lead to reduced hours and job cuts for staff
7 days ago

Steel bridge specialist sold to staff

Nusteel Structures Group becomes industry's latest Employee Owned Trust
7 days ago

Ex-Lendlease chief to lead Euston housing regeneration

Bek Seeley to head Euston Housing Delivery Group
7 days ago

Ardmore lands Kensington hotel revamp

Contractor to transform former Kensington Holiday Inn
7 days ago

Contractor services