01.11.19

Government awards procurement agreement for construction

Public sector bodies across the industry will for the first time be able to utilise a government-led construction agreement, as the government awarded a major new procurement agreement to Crown Commercial Service (CCS).

All public sector bodies are now able to utilise the CCS Construction Works and Associated Services framework to identify and find companies to help with the construction of new public sector buildings – including schools, hospitals, office buildings, universities, prisons and houses.

Organisations can also use it to refurbish existing properties, undertake repairs and demolition, and decommission redundant assets.

The framework has a maximum potential value of £30bn over the next seven years.

Government introduced the new agreement to prevent public sector bodies being forced to run their own costly, time-consuming procurement exercises.

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Instead, the new streamlined framework will speed up the process, helping support both the government and the construction sector in achieving objectives under the Government’s Construction Strategy and Industrial Strategy – which was formed in collaboration with industry, aimed at supporting sustainable construction.

So far, 128 suppliers – including 57 SME enterprises – have been named on the procurement agreement. Thirty-one of 38 sub-lots have been awarded today, with CCS expected to name the remaining lots in due course.

The minister for implementation, Simon Hart, said: “This agreement will help public bodies across the country carry out the work needed to build much-needed new housing as well as improve schools and hospital buildings.

“I know this will be welcomed by people up and down the country and I really look forward to seeing some of the incredible projects this agreement will help to facilitate.”

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Sam Ulyatt, commercial director, buildings at CCS added: “This new agreement provides a solid foundation for public sector bodies to achieve the best outcomes and value for their investment across the whole construction lifecycle.

“The principles of this agreement are collaboration and integration with supply chains, boosting innovation at a critical time and supporting the government’s work towards achieving a zero carbon 2050 target.”

The new agreement has been designed to provide SMEs with a level playing-field. There are lots for different contract values and regional lots open to local suppliers, to ensure that smaller companies can compete for places. Close to 99% of all providers in the construction industry are SMEs.

Alongside access to commission construction and house building for housing associations and local authorities, the agreement also provides access to specialist construction work for air-side and maritime construction services, as well as modern methods of construction, such as offsite manufacturing.

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