Government Unveils £120bn Construction Framework: A New Era for Public Sector Projects

The UK government, through the Crown Commercial Service (CCS), has launched a significant tender for its next major public sector construction framework, estimated to be worth a colossal £120 billion before VAT. This eight-year agreement, known as Construction Works and Associated Services 3 (CWAS3), is set to commence in January 2027 and will consolidate several existing frameworks, including the NHS ProCure route.

Key Takeaways

A new eight-year public sector construction framework valued at an estimated £120 billion (excluding VAT).
The framework, CWAS3, will run from January 2027 to January 2035.
It integrates existing CCS construction frameworks and the NHS ProCure platform.
The scope is broad, covering general construction, civil engineering, infrastructure, offsite solutions, defence, international projects, and nuclear work.
The tender process is open, with enquiries due by 30 April and tenders by 21 May.

A Consolidated Approach to Public Construction

The CWAS3 framework is designed to streamline procurement for central government departments and a wide array of public sector bodies across the UK. This includes local authorities, health bodies, police, fire and rescue services, educational institutions, housing providers, charities, defence organisations, and devolved administrations. The framework aims to provide a single, simplified route for procuring construction works, associated goods, and services for all types of built assets and infrastructure.

Extensive Lotting Structure for Diverse Needs

To cater to the varied requirements of public sector projects, the framework has been meticulously divided into seven core lots, further broken down into 41 specific lots and sub-lots. These cover general construction and civil engineering, which are further segmented by region and value band, ranging from projects under £5 million to those exceeding £250 million. Specialised areas such as demolition, offsite solutions, health, justice, defence (including maritime, airfields, and nuclear projects), international work, and nuclear projects are also addressed in dedicated lots.

Integration of NHS ProCure and Offsite Solutions

A significant aspect of CWAS3 is its incorporation of the next generation of the NHS ProCure route, known as ProCure 24. This ensures continuity for major healthcare capital programmes. Additionally, the framework absorbs the Offsite Construction Solutions agreement, reflecting a growing emphasis on modern methods of construction. CCS anticipates that the framework will allow for call-offs both with and without competition, a feature designed around the principles of the Construction Playbook and industry ‘Gold Standards’.

Procurement Timeline and Evaluation Criteria

The procurement process is being managed as an open procedure. Suppliers are invited to submit enquiries by 30 April, with tenders due by 21 May. CCS expects to make award decisions by 11 January 2027. The evaluation of bids will consider price as a significant factor (30%), alongside crucial elements such as lifecycle value, supply chain management, delivery capabilities, social value, accessibility, innovation, and alliancing strategies. Suppliers will be subject to a fee of 0.2 per cent of charges invoiced under call-off contracts.