ProCure21 gets boost from £200m surge in contracts

NHS ProCure21 (P21) contractors have reported a sudden surge in work, with more than £200m-worth of contracts let since Easter.

A total of 23 ProCure21 (P21) schemes have been awarded since the beginning of this financial year. Kier has taken the lion's share and won 14 schemes worth a combined £80m. Balfour Beatty has also landed its first substantial deal under the framework, snatching the £13m Cromer Community Hospital deal in Norfolk away from Kier this month.

The flow of P21 schemes slowed to a trickle last year due to NHS budgetary cuts, a national restructuring of NHS Trusts and a P21 review, which undermined Trusts' confidence in the initiative. The downturn saw Wates, Carillion and Taylor Woodrow quit the 11-strong framework in June 2006.

Improved NHS Trust finances and the Department of Health's (DoH) decision to extend the framework contract by two years has now kick-started the revival.

P21 contractors welcomed the upturn. One told CJ: "We are now getting at least two bidding opportunities a week, compared to less than two a month this time last year. Even August, which is normally quiet, was busy."

Another said: "Extending the contract has given Trusts the confidence to use us to deliver their schemes."

A DoH spokesperson said: "Since ministerial approval of the extension of the framework in April 2007, there have been 36 schemes that have selected a principal supply-chain partner, the total value of which being £230m. In addition, there are another 12 schemes in the earlier stages totalling £97.5m. We have seen a 50% increase in the number of schemes registered on the same period last year."

Biggest ProCure21 wins so far in 2007/08

West Hertfordshire Hospitals: Medicinq: £34m

Oxford Radcliffe Hospitals: HBG: £22m

Leeds Teaching Hospitals: Laing O'Rourke: £17m

Norfolk and Norwich University Hospital: Balfour Beatty £12m

Sheffield Teaching Hospitals: HBG: £11m

North East Lincolnshire: Interserve Health: £11m

Sheffield Teaching Hospitals: HBG: £10m

Hertfordshire Partnership: Medicinq: £8.5m

Worthing and Southlands Hospitals: Interserve Health: £8m

Northern Devon Healthcare: Kier Health: £8m