MOD awards contract for capital works projects in Scotland

The Defence Infrastructure Organisation (DIO) has announced the appointment of five companies to its most recent framework for the design and build of up to £250 million worth of MOD construction projects inScotland.

Under the Next Generation Estate Contracts (NGEC) programme, DIO has awarded contracts for the Framework for Capital Works Projects inScotland– delivering construction works each valued at up to £12 million – to:

  • Henry Brothers (Magherafelt) Ltd
  • Interserve Construction Ltd
  • Kier Graham Defence (a Joint Venture between Kier Construction Ltd and John Graham Construction Ltd)
  • Lend Lease Construction (EMEA) Ltd
  • Miller Construction (UK) Ltd

The framework is estimated to be worth between £100m and £250m and will operate for an initial four-year period, with the option to extend by up to a further three years.

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

The initial construction projects that are likely to be delivered through the Scotland Framework include works at a variety of locations in support of the programmes for Army Basing and for Future Reserves 2020.

Leo O’ Shea, Director of Service Delivery for DIO, said:

“DIO’s priority is to build a better Defence estate by providing the right buildings in the right places to meet the requirements of military personnel. I am pleased that Scotland’s future Defence construction requirements can now be met through this framework. The Capital Works Framework programme will ensure ongoing competitive tension, better value for money, and will speed up the procurement of projects.”

John Jones, the NGEC Capital Works Frameworks project manager, said:

“The award of this framework continues the work to provide a consistent procurement process across the Defence Estate that meets the requirements of the Government Construction Strategy and which will bring about efficiencies in terms of cost, design and project delivery.”

This is the third DIO Framework contract to be awarded, following the appointments of the National Framework and theEast Midlandsand Eastern England Frameworks last year. The Framework for Capital Works projects inScotlandwill operate alongside the five other regional frameworks and deliver construction projects each up to a value of £12m. The National Framework delivers more complex projects and cross-region programmes each up to a value of £50M.

Under the aims of the Government Construction Strategy, the frameworks will introduce use of Building Information Modelling (BIM) and the nec3 form of contract, adopt prompt payment principles through the use project bank accounts and other initiatives, and incorporate effective performance management, continuous improvement and benchmarking arrangements.

The frameworks will be used for the majority of future UK Defence construction projects valued at below £50m.


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Notes to Editors         

1.   The Defence Infrastructure Organisation (DIO) plays a vital role in supporting our Armed Forces by building, maintaining and servicing what the men and women who serve our country need to live, work, train and deploy on operations.

2.   DIO is part of the Ministry of Defence (MOD). It is responsible for managing and maintaining land and properties, as well as providing related support services, to meet the current and future  needs of the MOD and personnel at home and abroad, and to support current operations.

3.   DIO was formed on 1 April 2011 when the former Defence Estates (DE) organisation was brought together with other property and infrastructure functions within department to form a single organisation. DIO manages the MOD’s property infrastructure and ensures strategic management of the Defence estate as a whole.

4.   The Next Generation Estate Contracts (NGEC) programme has developed a new suite of contracts for the UK Defence estate, comprising four Regional Prime contracts for hard facilities      management, the National Housing Prime, the National Training Estate Prime, the US Forces Estate Prime, and one national and six regional Capital Works Frameworks for construction projects. 

5.   The Capital Works Framework Contract forScotlandwill be used to deliver construction projects valued up to £12m within its geographic boundaries, potentially including: offices, messes, accommodation blocks, garages, workshops and other technical facilities, hangars, houses, general and ammunition stores, medical facilities, sports and recreational facilities, teaching and training facilities, armouries, community facilities, and guardrooms

6.   The National Capital Works Framework was awarded last year and is being used to deliver higher value construction projects, more complex projects and cross-region programmes up to a value of £50m

7.   The East Midlands and Eastern England framework was also awarded last year, and it is planned that the other Regional Capital Frameworks (the North East, North West and Yorkshire and the Humber; the West Midlands and Wales; the South East (including London); and the South West) will also be used to deliver regional construction projects valued below £12m. The procurement of these frameworks is ongoing.