Five win places on £400m MoD major projects framework

Grant Prior 8 years ago

Five contractors have won places on a £400m framework to build large-scale MoD construction projects across the UK Defence estate.

The Defence Infrastructure Organisation has confirmed the winners of the National Capital Works Framework are:

  • Balfour Beatty
  • Carillion
  • Kier Graham Defence Limited
  • Miller
  • Wates

In total there will be seven Capital Works Frameworks, which comprise of six regional and one national framework.

The National Framework – which forms part of the DIO’s Next Generation Estate Contracts (NGEC) programme – will operate alongside the regional frameworks and can be utilised at any defence site across the UK.

Each individual project will be worth up to £50m with a total value for the framework of up to £400m over an initial four-year period, with the option to extend by up to a further three-years.

For projects above £50m other procurement options will be considered, including stand alone contracts or Private Finance Initiatives.

When projects are identified as suitable for delivery through the framework, the five companies will be invited to engage in ‘mini-competitions’, tendering for design and build solutions.

Andrew Manley, DIO Chief Executive, said: “For the Armed Forces to live, work and train effectively on the military estate, the DIO is putting in place an agile new suite of contracts under Next Generation Estates Contracts.

“The Capital Works Frameworks provide for ever improving value for money, competitive tension, and the ability to meet the demand of future requirements across the UK defence estate.

“Defence Transformation under the Strategic Defence Review (SDSR) is driving major change and modernisation and we will be looking to our industry partners for their support by sharing their expertise with DIO service delivery staff as the programme moves forward and project requirements are identified.”

Matt Foley, the Head of NGEC, said: “The NGEC team is confident that the companies selected will meet the high standards required on the Defence estate.

“Each of the bidders faced a rigorous evaluation process and clearly demonstrated that they are capable of delivering a complex and diverse number of high value construction projects, which are fit for the defence frontline.”

The frameworks will introduce the use of Building Information Modelling (BIM) and the nec3 form of contract as cited in the Government Construction Strategy.

Capital Works Frameworks will also champion prompt payment principles through the use of project bank accounts and other initiatives, as well as incorporate effective performance management, continuous improvement and benchmarking arrangements.

Andrew Riggs, Wates Construction’s Head of Government Sector said: “From building Mulberry Harbours in the run-up to D-Day, through to providing the latest in modern accommodation for Britain’s armed forces, Wates has always sought to work closely with Britain’s defence estate throughout its history.

“This announcement is a significant milestone for us and, as a leading privately-owned family contractor, we are proud to lend our expertise in delivering major projects for the MoD.”

Bob Clark, Balfour Beatty Executive Director, said: “We are committed to continuous improvement and have a proud track record of delivering major defence projects including the £280 million USAF housing framework for visiting US forces and the £160 million Flagship programme delivering the Royal Navy’s Training Estate Programme, and we are looking forward to working with the Defence Infrastructure Organisation over the duration of this framework as well.”

Chris Webster, Chief Executive, Miller Construction, said: “As a national provider we have a proven track record of providing best value and highest quality working, training and living environments that our armed services personnel and their families deserve.

“We look forward to delivering the next generation of defence projects across the country on this framework.”

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