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Defence Infrastructure Organisation puts regional frameworks for Ministry of Defence projects on hold

The Defence Infrastructure Organisation has shelved plans for two regional frameworks due to a lack of projects, Construction News has learned.

The DIO this week appointed five contractors to its design-and-build framework for Ministry of Defence projects across Scotland, worth up to £250m in total.

But plans for regional capital works frameworks in the West Midlands & Wales and the North-east, North-west and Yorkshire & Humber have been put on hold.

A DIO spokewoman said: “Currently, identified spend within these two framework areas is not sufficient to justify us pursuing this at present.

“A decision on how to proceed will be made early in the new year.”

The DIO still hopes to proceed with the frameworks at some point, but for now the MoD is considering its options on how to proceed with projects identified in those regions.

It is understood the MoD will consider procuring projects through the current national framework, for which Balfour Beatty, Carillion Construction, Kier Graham Defence, Miller Construction and Wates Construction qualified a year ago.

Alternatively it may decide to procure schemes via one-off contracts, with a decision to be made in the new year.

The Scotland framework was awarded last week after originally having been pencilled in for award in the summer.

Procured under the Next Generation Estate Contracts programme, five contractors will now compete to design-and-build contracts worth up to £12m each.

The winning firms were Henry Brothers (Magherafelt), Interserve Construction, Kier Graham Defence, Lend Lease Construction (EMEA) and Miller Construction (UK).

Balfour Beatty, Morgan Sindall and Robertson were the three shortlisted firms to miss out on the framework.

The framework will be worth between £100m and £250m and will operate for four years, with the option to extend by up to a further three years.

Henry Brothers (Magherafelt), Interserve Construction, Mansell Construction Services, Morgan Sindall and Shepherd Construction are the contractors on the third NGEC capital works framework for East Midlands and Eastern England.

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