During a supplier’s day in Birmingham, which saw over 230 representatives attend from 103 contractors, the Highways Agency presented its plans for its £5bn Collaborative Delivery Framework, which is to be launched next month with prequalifying firms. The Framework is expected to last for four years with a possibility of a two-year extension.
The framework will be divided into four separated Lots (see below) – one for engineering design services and three for small, medium and large-value construction projects.
Collaborative Delivery Framework
Lot 1 – Professional design and engineering services – 8 to 12 consultants
Lot 2 – Medium value construction works (schemes up to £25m) – 3 to 5 contractors
Lot 3A – High value construction works (£25m-£100m) – 4 to 6 contractors
Lot 3B – High value construction works (£100m-£450m) – 4 to 5 contractors
Major Projects Director, Peter Adams, of the Highways Agency said, “We are going to be working with suppliers to grow their scale, because increasing capability and capacity is absolutely key for us… We had one hell of an announcement in June and are quadrupling our investment in the roads programme.”
It is predicted that the small construction Lot, currently worth of £450m, will provide jobs worth of £25m and increase up to £50m over the lifetime of the framework. The medium Lot, on the other hand, despite initially encompassing schemes worth £25m to £100m, will offer £450m jobs by the end of the framework, coming to £1.35bn in total. Thus, there will be an opportunity for four to six firms to compete for the Highway Agency’s biggest projects. Lastly, the upper limits for the high value Lots for large and complex schemes, worth between £100m and £450m, will stay unchanged. In total, the Lot is worth £2.7bn and will be given to four or five contractors.
Peter Adams and David Poole, Commercial and Procurement Director at the Highways Agency, said they “wanted to see contractors demonstrate improved capability to win larger contracts over the lifetime of the framework.” This could result in firms being awarded bigger contracts later into the programme, with the increase in values of projects during the four-year period.
The new framework will replace the current £2bn Major Projects Framework, which is a collaboration between Balfour Beatty, a BamNuttall / Morgan Est JV, Carillion and a Costain / Serco JV. The programme is set to finish in March 2014.
Bids for the framework will be judged upon long-term value, taking into consideration price and other factors such as health and safety regulations, quality of work and environmental action plan.
Mr Adams said the Highways Agency is seeking to see the evidence of “passion and a relentless drive to find continuous improvement” in bidders’ work in order to distinguish themselves from other competitors. He added that the crucial factor in securing places on the framework would be clear examples of integrating innovation and product management.
Prequalification forms need to be submitted by 25 November and can be found on the Highways Agency procurement portal.