SMEs promised a slice of £2bn north-west framework

Smaller contractors are being guaranteed a major slice of a new framework across the North West, which could deliver up to £2bn of new construction work for local authorities.

Framework deals have often been criticised for shutting-out small and medium sized firms, as the major contractors hoover-up all the work.

But leaders of the North West Regional and Improvement Partnership (NWIEP) are setting-up deals that will specifically target SMEs.

Manchester City Council is leading the project, which plans to form two frameworks in a bid to deliver savings of more than £40m.

The frameworks will cover work in the range from £500,000 to £10,000,000, and £0 to £500,000.

Project manager Phil Gardener said: "There is some concern that SMEs often miss out on framework deals so we have split ours to avoid that.

"The small works framework is targeted very much at SME suppliers in the five north-west sub-regions - Cheshire, Merseyside, Greater Manchester, Lancashire and Cumbria - and will be structured to address the diversity and specific needs of local supply markets and of individual authorities in the sub-regions."

A pilot scheme for the frameworks will concentrate on the Primary Capital Programme across the region.

The programme involves 22 Local Education Authorities in the North West who are planning to spend £250m on school building work.

If the framework is successful, it could be rolled-out to cover the local authorities £2bn annual construction spend.

Gardener said: "Through the frameworks, local authorities and other public sector bodies in the North West will benefit by sharing resources, expertise and buying power to bring construction projects in on time and within budget."

The frameworks will be advertised by the beginning of 2009 and will be in place in the second half of 2009.