MOD awards contracts for capital works projects in southern England

The Defence Infrastructure Organisation (DIO) has announced the appointment of five companies to its most recent Frameworks for the design and build of up to £650 million’s worth of MOD construction projects in the South East and South West of England.

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

  • Galliford Try Plc
  • Kier Construction Ltd
  • Volker Fitzpatrick Ltd
  • Henry Brothers (Magherafelt) Ltd [South East] / HBDW SPV [South West]
  • Morgan Sindall Plc

The Framework for the South East of England is anticipated to be worth up to £250M in the initial four-year period, with the option to extend by up to a further three years.

The Framework for the South West of England is anticipated to be worth up to £400M in the 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 and build solutions.

The initial construction projects that are likely to be delivered through the two new Frameworks 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 southernEngland’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 these Frameworks 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.”

These are the fourth and fifth Frameworks to be let, following the award of the Framework for Capital Works inScotlandin 2014 and the awards of the National Framework and the East Midlands and Eastern England Regional Framework in 2013. The two new Frameworks for Capital Works projects in southern England will operate alongside other regional Frameworks to deliver construction projects valued at up to £12M each. A National Framework delivers more complex projects and cross-regional programmes valued at up to £50M each.

As part of the Government Construction Strategy, the Frameworks will introduce the 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 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 Contracts for the South East of England and for the South West of England will both be used to deliver construction projects valued up to £12m within their 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 in 2013 and is being used to deliver higher value construction projects, more complex projects and cross-region programmes up to a value of £50m per project.