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MOD awards contracts for large-scale UK construction projects

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The Defence Infrastructure Organisation (DIO) has appointed five companies for the design and build of up to £400 million worth of large-scale MOD construction projects across the UK Defence estate.

Contracts have been awarded for the National Capital Works Framework – delivering projects each valued at up to £50 million – to:

  • Balfour Beatty Group Ltd
  • Carillion Construction Ltd t/a Carillion UK Construction
  • Kier Graham Defence Limited
  • Miller Construction (UK) Ltd
  • Wates Construction Ltd

Representatives of the successful companies attended a special ceremony at the Defence Infrastructure Organisation (DIO) in the West Midlands on 13 December 2013 to sign ‘Partnering Charters’, which set out a number of principles and behaviours that are intended to promote effective joint working.

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

This is the second NGEC Capital Works Framework to be awarded during the last month. It follows the signing of the East Midlands and Eastern England Regional Framework contract in November 2013.

The National Framework will operate alongside the regional frameworks and can be utilised at any Defence site across the UK. It allows for the delivery of a diverse range of high value, technically complex construction projects, as well as for projects that need to be delivered across regional boundaries.

Each individual project will be valued up to £50 million. The total value of the Framework is worth up to £400m over an initial four-year period, with the option to extend by up to a further three-years. For projects above £50 million other procurement options will be considered, including stand alone contracts or Private Finance Initiatives.

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.

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 NGEC. 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:

“I am pleased to welcome the successful contractors to the National Framework. 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.”

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.

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.

Ends

Notes to Editors

           

    1. Defence Infrastructure Organisation (DIO) is part of the Ministry of Defence (MOD). It is responsible for managing and maintaining land and properties to meet the current and future needs of the MOD and personnel at home and abroad, and to support current operations.
    2. DIO’s work includes supporting operational units by providing and improving single living and service family accommodation; training areas and historic military sites. DIO actively manages these to ensure the needs of Defence are met, value for money is achieved, and its heritage is protected, and to achieve its environmental goals.
    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 is developing 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. Each Regional Capital Works Framework will be used to deliver construction projects valued up to £12m, 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 will be 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 East of England contract was awarded in November 2013. It is planned that the other Regional Capital Frameworks (Scotland; 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 beused to deliver regional construction projects valued below £12m and the procurement of these frameworks is ongoing. Successful bidders will be invited to engage in “mini competitions” once project requirements have been identified as suitable for delivery through the Framework.
    8. Project Hestia aims to harmonise the provision of soft facilities management across the UK Defence estate, replacing current arrangements with a suite of nine regional multi-activity contracts (RMACs) providing: catering, cleaning, waste management, retail & leisure, accommodation & mess management and a range of other support activities; they will also include options for management of stores & armouries and the provision of a deployable catering service for military operations.
    9. NEC3 contracts will be introduced to the DIO for the first time through NGEC’s Frameworks programme. In addition to their use on construction projects they will also be used in due course on contracts across housing, training estate, and hard FM. NEC3 contracts facilitate the implementation of sound project management principles and practices, and have delivered major benefits across a diverse range of works and services in terms of time, cost savings and improved quality.
    10. The Government Construction Strategy was published in May 2011 which sets out a framework for a range of work streams, all of which have the aim of reducing the cost of government construction projects by 15-20% by the end of the current Parliament.
    11. Building Information Modelling (BIM) is a global digital construction technology, which provides a shared source of information about individual facilities to assist the decision making process for the design, construction and management of buildings from planning stage, and throughout their life cycle.
    12. With Picture - Andrew Manley CEO, DIO and Next Generation Estates Contracts (NGEC) team with representatives from the five successful bidders awarded a place on the National Capital Works Frameworks. Crown Copyright MOD/2013.

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