Credit crunch sparks £2.3bn college framework rethink

Education bosses have halted a £2.3bn college framework in the hope that the credit crunch will bring more bidders to the table.

The Learning and Skills Council (LSC) is delaying the launch in the hope the downturn will force more contractors to bid for it when it is finally advertised.

The four-year framework to deliver the first phase of the government's £4.6bn further education capital programme, was due to be launched this spring.

It was developed by Hampshire County Council on behalf of the LSC and based on the South East Centre of Excellence regional framework. However, the LSC is rethinking its strategy in the light of the downturn.

Philip Head, LSC infrastructure and property services director, told CJ: "We have no plans for the contractors' framework at present.

"We want to see over the next few months if the impact of the credit crunch will bring more contractors into the bidding.

"Although there is a lot of public sector work, office and development work is diminishing, so we could have greater competition if we launch at a later date. We will review the situation in the autumn."

However, schools contractors criticised the LSC's decision this week and warned that it could backfire.

One leading schools contractor commented: "Building Schools for the Future is kicking in big time, as well as the Academies framework, the regional frameworks and NHS LIFT. If anything, there will be fewer contractors with experience of the sector available to bid if LSC leaves it any later."

Another contractor questioned whether consultants on the LSC's recently launched consultants framework had influenced the LSC's decision. "Consultants like the freedom to choose their own contractors, have their own pricing methods and generally like ruling the roost."

Head said the LSC's need to "bed in" its consultants framework had influenced its decision to delay the contractors framework.

The framework caused industry controversy when it was launched in February. The final line-up had prompted an outcry from some of the larger consultancies that hadn't been chosen.

CJ understands that further talks resulted in two consultancies being added to the list of 35 firms. Sources say these are Drivers Jonas and Capita Symonds.