What is the story about?
What's Happening?
The Crescent Purchasing Consortium has initiated a tender for a comprehensive construction framework valued at up to £11.4 billion, including VAT. Announced on October 2, 2025, this procurement effort is set to cover a wide array of capital works contracts across five UK regions: England (North, Midlands, South), Scotland, and Wales. The framework is structured into 45 lots, each utilizing industry-standard forms such as JCT Minor Works, JCT Design and Build, and NEC4 Engineering and Construction, among others. The framework is scheduled to run from May 2026 to April 2028, with the potential for three two-year extensions, allowing for a maximum duration of eight years. Crescent anticipates that £9.5 billion, excluding VAT, will be spent through this framework, with values per lot estimated at £211.1 million, subject to change based on market conditions and member uptake. The framework is designed to support a variety of building works, including refurbishment, demolition, new-build, and civil engineering, primarily for Crescent’s education-sector members and affiliated public bodies.
Why It's Important?
This construction framework represents a significant investment in the UK’s infrastructure, particularly benefiting the education sector and affiliated public bodies. By structuring the framework into 45 lots, Crescent aims to streamline procurement processes and ensure that a wide range of construction needs are met efficiently. The substantial financial commitment underscores the importance of maintaining and developing public infrastructure, which can lead to job creation and economic stimulation in the regions involved. The framework's flexibility, with potential extensions, allows for long-term planning and stability in the construction industry. This initiative could set a precedent for future large-scale public procurement projects, emphasizing the need for adaptable and comprehensive frameworks to address diverse construction requirements.
What's Next?
The deadline for tender submissions is set for October 30, 2025. Following this, Crescent will evaluate the submissions to select contractors for the various lots. The selected contractors will then prepare to commence work in May 2026. Stakeholders, including construction firms and public bodies, will be closely monitoring the tender process to understand the competitive landscape and potential opportunities. The framework's implementation will likely prompt discussions on best practices in public procurement and the effective management of large-scale construction projects. Additionally, the framework's progress and outcomes may influence future policy decisions regarding public infrastructure investment and development strategies.
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