DIO announces contract winners of £250m Scottish capital works framework

Defence Infrastructure OrganisationThe Defence Infrastructure Organisation (DIO) has announced the appointment of five companies to its most recent capital works framework which will result in the design and build of £250 million worth of MoD projects in Scotland.

The Next Generation Estate Contracts (NGEC) programme will result in the delivery of construction works each valued at up to £12M. The contracts awarded by the DIO went to:

  • Henry Brothers (Magherafelt) Ltd

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

  • Estimated to be worth between £100m and £250m the framework will operate for an initial four year period, with the possibility of extending for a further three years.

    Each of the five companies will be invited to enter ‘mini-competitions’ to tender for design & Build solutions when a project is identified as being suitable for delivery through the framework. It is likely that the first construction projects delivered through the Scottish Framework will include works at a variety of locations which will support the Army Basing and Future Reserves 2020 programmes.

    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, added: “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.”

    The NGEC programme is the third DIO Framework contract to be awarded and follows the appointments to the National Framework and the East Midlands and Eastern England frameworks in 2013. The framework will operate alongside five other regional frameworks, all delivering projects of up to £12m. The National Framework will result in the delivery of construction projects that are more complex and have a value of up to £50m.

    All the DIO frameworks are expected to comply with the aims of the Government Construction Strategy, introducing in the use of Building Information Modelling (BIM) and the nec3 form of contract, adopting prompt payment principles through the use project bank accounts and other initiatives, and incorporate effective performance management, continuous improvement and benchmarking arrangements.

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