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Construction Works Framework – Latest Update

Construction is always one of the most active bidding sectors with around 7,000 frameworks active across the UK. The largest one which will be open in the UK next year is the Crown Commercial Service (CCS) Construction Works Framework which will be released in January 2019. Chris Blackburn, our North West-based Senior Bid Manager, attended the webinar held on 17th December 2018 to get the latest information…

As previously updated, this is a huge project for Crown Commercial Service, and they have been extremely diligent in engaging with the market and their clients, both in central government and the wider public sector to ensure the framework is representative of the industry. This process started in September 2017 and should be applauded for its comprehensive nature. The other key challenge for this framework is with a seven-year appointment, the appointments need to be future-proofed and reflective of the changing construction marketing, including the drive towards innovative technologies e.g. modular construction.

This is also reflected in the adoption of the Framework Alliance Contract approach. This looks to improve value through alliance activities, linked to the clients’ objectives through even further supply chain collaboration. This format of mutual commitments has worked very well previously, especially for the Ministry of Justice. To simplify matters for clients and contractors, CCS are also producing multiple forms of call off contract and are looking to implement standardised boilerplate call off Terms and Conditions.

Throughout the tender process, all of the procurement is aligned with the Government Construction and Industrial Strategy/Construction Strategy 2025 Objectives. This includes digital design, government soft landing, prompt payment, whole life cost of the building considerations, apprenticeships, supply chains, collaborative procurement and modern methods of construction.

The latest webinar was part of an ongoing series of market engagements to allow potential suppliers the opportunity to gather more information. Further information can be found here:

–  Construction Works Contractors
• http://ccs-agreements.cabinetoffice.gov.uk/node/7279

  • The potential value of the framework – £30 billion over seven years

–  The potential number of appointments – 490 across 38 sub-lots – although expected to be far less as bidders will bid for multiple lots

During the process, there has been further refinement of the Lot structures, reflecting additional feedback from both clients and contractors to better represent the market. The latest proposed structure looks set to be:

  • Lot 1 – Building and Civil Engineering Works projects valued £0k – £3m:
    • Lot 1.1 – Construction Works: 5 x Regional Sub Lots & up to 20 Suppliers per Lot
    • Lot 1.2 – Civil Engineering Works: 5 x Regional Sub Lots & up to 10 Suppliers per Lot
  • Lot 2 to 5 inclusive – Construction Works and Associated Services (National and Regional Sub Lots across UK regions) – Lot 2 – £3m-£10m; Lot 3 – £10-£30m; Lot 4 – £30m-£80m and    Lot 5 – £80m+
  • Lot 6 – Residential (Regional Sub Lots across UK regions)
  • Lot 7 – Residential ‘High Rise’ (Regional Sub Lots across UK regions)
  • Lot 8 – Maritime (National Service Provision across all UK regions)
  • Lot 9 – Airfields (National Service Provision across all UK regions)
  • Lot 10 – Construction Management (National Service Provision across all UK regions)
  • Lot 11 – Demolition (National Service Provision across all UK regions)

If you are appointed for Lot 1, you cannot be appointed to Lot 2 upwards and vice versa. Bidders will be asked to express a preference as part of the tender process to provide clarity. The key element for Lots 1-5 is the division into regional sub lots which are based on the NUTS, Nomenclature of Territorial Units for Statistics areas. The five regions are:

  • UK C-G – North East, North West, Yorkshire & Humber, East Midlands and West Midlands
  • UK H-K – East of England, London, South East and South West
  • UKL – Wales
  • UKM – Scotland
  • UKN – Northern Ireland

The other news was that a Prior Information Notice (PIN) will be released this week, further informing the market about the bid process. The previous PIN was published back in February 2018 so a refresh to confirm their intentions is a positive one. This tender will be a one stage process, so bidders need to put their best foot forward immediately. Bidders will be able to do this through standardised questions that will apply to multiple lots, rather than having to repeat or duplicate information. The timetable is expected to be as follows:

  • CCS publish the PIN this week
  • OJEU advertisement released in January 2019
  • CCS to hold further bidders day(s) during the process
  • Spring/Summer 2019 – Framework Award

So as CCS finalises the procurement documents, now is the time for bidders to review the information and consider if they want to tender. There are a large number of competing frameworks, some of which are currently undergoing retender, but CCS with its track record as the Government’s procurement arm should be one which bidders strongly consider.

At AM Bid, we have a proven track record of supporting clients to be successful on construction frameworks and so are well placed to help bidders. For a no-obligation conversation, contact Andrew Morrison, Managing Director of AM Bid at andrew@ambid.co.uk or on 07507 523920.

 

FURTHER INFORMATION

For information on the Construction Works Framework, please see our previous articles, links below