News story

MOD awards regional construction contracts

The DIO has appointed 5 companies for the design and build of construction projects in the East Midlands and eastern England region.

• From: Defence Infrastructure Organisation
• Published: 13 November 2013

Interior construction work

The framework covers an area spanning Lincolnshire to Essex.

Representatives of the successful companies attended a special ceremony in London on 11 November 2013 to sign ‘partnering charters’, which set out a number of principles and behaviours that are intended to promote effective joint working.

Contracts have been awarded for the Regional Capital Works Framework East Midlands and Eastern England – delivering regional projects each valued at up to £12 million – to:

• Henry Brothers (Magherafelt) Limited
• Interserve Construction Limited
• Mansell Construction Services Limited
• Morgan Sindall plc
• Shepherd Construction Limited

This framework is estimated to be worth between £100 million and £250 million over an initial 4-year period, with the option to extend by up to a further 3 years.

It is also the first of 7 capital works frameworks that are being procured under the Next Generation Estate Contracts (NGEC) programme for the delivery of construction projects on the Defence Estate and is a major step forward in the programme.

There are 5 other regional frameworks and 1 national framework. It is expected that, in addition to supporting other requirements, the frameworks will be used to procure a significant proportion of work in support of military rebasing up to 2020.

When project requirements are identified as suitable for delivery through the framework, the 5 companies will be invited to engage in ‘mini-competitions’, tendering for design and build solutions.

Andrew Manley, Defence Infrastructure Organisation (DIO) Chief Executive, said:

DIO’s priority is to support our Armed Forces as they live, work and train on the military estate.

I am pleased that future defence construction requirements will start to be met through this framework consisting of these respected businesses in what will be a busy time for military rebasing and site development.

The capital works frameworks programme will ensure ongoing competitive tension, better value for money, and will speed up the procurement of projects.

Matt Foley, the Head of NGEC, said:

DIO has worked hard to attract the best companies into the procurement process, whether as potential main contractors or subcontractors, and have rigorously evaluated the bidders’ ability to deliver a wide range of potential defence projects.

I am confident that these companies are now ready to deliver the construction work the defence front line requires.

The framework will be used for the majority of future UK defence construction projects.

The Regional Capital Works Framework for the East Midlands and Eastern England will operate alongside the National Capital Works Framework which will be used for projects worth up to £50 million.

Under the aims of the Government Construction Strategy, the framework will introduce the use of building information modelling and the NEC3 form of contract.

They will 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.

Published 13 November 2013