Five firms win pioneering £1bn framework in South East

Mansell, HBG, Kier, Mace Plus and Warings have beaten 15 other contenders to win a £1bn regional framework contract in the South East.

The scheme, revealed by CJ on 17 May, will deliver building works across south-east England for up to 74 local authorities.

The pioneering contract, tendered by Hampshire County Council (HCC) on behalf of the South East Centre of Excellence (SECE), is expected to be the blueprint for further regional contracts across England. It is inspired by the government's drive to create greater public procurement efficiency following the Gershon Efficiency Review.

The framework has 19 local authorities signed up to it, but has the capacity for all 74 councils in the South East to use it.

The winning five will divvy up all major building works in the region. These will include schools, both within and outside the Building Schools for the Future programme, libraries, civic offices, sport and leisure facilities, care homes and housing.

The contract will run for four years with a one-year extension option. SECE estimates a potential annual work stream of £200m.

The five contractors will begin by delivering a number of demonstration projects. Second-tier frameworks, aimed at smaller contractors for projects up to £2.5m in value, are also being developed by SECE for clusters of authorities in the South East.

Local framework contracts for even smaller works are also on the horizon, with HCC again leading the way with a pathfinder framework deal for all works under £500,000.