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Midland unveils œ250m+ plans
00:00 07 Jul 1994
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Midland Bank is set to launch a major construction programme worth
hundreds of millions of pounds to improve every one of its 1,600
branches in the UK, sparking a bonanza for contractors.
The move has been ordered by Midland's new parent company, Hongkong Shanghai Bank, which is unhappy with the quality of its high street premises.
Cash-rich HKS is understood to have set Midland a 12- month target to make its facilities the best of the four major clearing banks.
The programme - worth at least œ250 million, and possibly as much as œ400 million - has called for major changes in the bank's procurement methods. Due to the unprecedented speed of implementation, a serial contracting arrangement has been chosen.
Around 700 contractors have been considered in a four-stage prequalification for roughly 50 contract parcels. Each contractor will handle up to 40 jobs, and announcements on the first winners are expected shortly.
Most large contractors are expected to be interested in the work, with Bovis Lelliott and Kier expected to be among the front runners.
The programme has been divided in two between 1300 minor improvements valued at œ10,000-œ100,000; and 300 major improvements of up to œ1 million in value.
Contractors are being considered for one list only. And they are understood to be bidding on the basis of prelims and a schedule of rates.
An overall head contract details the number of jobs each will carry out, but the agreement is subject to the contractor's performance and can be terminated. Individual contracts may be signed for each branch, and spot pricing will be allowed for atypical sites where the schedule of rates cannot apply.
Midland has appointed a national project manager because of the strains of dealing internally with such a large number of schemes, even when divided among just 50 contractors.
Bucknall Austin and EC Harris will run the programme, and have already been active in the prequalification stage. Indicating how seriously it views the commission, Bucknall Austin has specially recruited Chris Chase to head up its team.
Chase has a property development background and until recently was employed by Imry.
Even with outside help, Midland may struggle to meet its ambitious 12-month target.
One well placed source told Contract Journal: 'It's a huge task. They though they could just step up two or three gears, but they are already finding it quite hard.
'In the end it might take 15 months.'
The move has been ordered by Midland's new parent company, Hongkong Shanghai Bank, which is unhappy with the quality of its high street premises.
Cash-rich HKS is understood to have set Midland a 12- month target to make its facilities the best of the four major clearing banks.
The programme - worth at least œ250 million, and possibly as much as œ400 million - has called for major changes in the bank's procurement methods. Due to the unprecedented speed of implementation, a serial contracting arrangement has been chosen.
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Around 700 contractors have been considered in a four-stage prequalification for roughly 50 contract parcels. Each contractor will handle up to 40 jobs, and announcements on the first winners are expected shortly.
Most large contractors are expected to be interested in the work, with Bovis Lelliott and Kier expected to be among the front runners.
The programme has been divided in two between 1300 minor improvements valued at œ10,000-œ100,000; and 300 major improvements of up to œ1 million in value.
Contractors are being considered for one list only. And they are understood to be bidding on the basis of prelims and a schedule of rates.
An overall head contract details the number of jobs each will carry out, but the agreement is subject to the contractor's performance and can be terminated. Individual contracts may be signed for each branch, and spot pricing will be allowed for atypical sites where the schedule of rates cannot apply.
Midland has appointed a national project manager because of the strains of dealing internally with such a large number of schemes, even when divided among just 50 contractors.
Bucknall Austin and EC Harris will run the programme, and have already been active in the prequalification stage. Indicating how seriously it views the commission, Bucknall Austin has specially recruited Chris Chase to head up its team.
Chase has a property development background and until recently was employed by Imry.
Even with outside help, Midland may struggle to meet its ambitious 12-month target.
One well placed source told Contract Journal: 'It's a huge task. They though they could just step up two or three gears, but they are already finding it quite hard.
'In the end it might take 15 months.'
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