£1.5bn new-build housing contract launched in Scotland

The recent announcement aims to accelerate the delivery of 50,000 new homes.

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Scotland Excel, the Centre of Procurement Expertise for the local government sector, has announced the launch of its largest ever framework for New Build Residential Construction services.

The £1.5bn framework was developed to help accelerate the delivery of 50,000 new affordable homes, joining forces with 11 Scottish councils to create the four-year plan.

The framework, which went live on 26th August, was developed to ‘significantly reduce’ the time taken to procure the building of a range of social housing properties from contractors.

It covers a wide range of property types including affordable houses, flats, residential homes, student accommodation and social rented or mixed tenure.

Specifically designed to create opportunities for SMEs to participate, companies could tender to build small projects of 1-15 properties with the choice of ‘build only’ or ‘design and build’ depending on their capabilities, with further lots for 16-25, 26-40 and 40+ properties.

A 0.5% rebate has been built into the contract that will be split between the 11 funding councils and Scotland Excel, ensuring the continued development of the framework and provide ‘vital income’ into the public purse.

Speaking about the new framework, Cllr John Shaw, Convener of Scotland Excel, said: “The £1.5bn New Build Construction framework is a major opportunity for Scotland’s councils and housing associations.

“The contract makes it easier for contracting authorities to engage with suppliers and deliver housing that benefits society.

“It covers all 32 council areas and supports the Scottish Government’s ambitious plans to build 50,000 new homes by 2021.

“The way the framework is designed means it will not only speed up the process – it will also free up resources and finances that can be invested in employment initiatives, deliver community benefits, and reduce environmental impact.”

19 suppliers including 13 SMEs were placed on the £1.5bn framework, after a robust two-stage restricted procurement process. These include:

  • Andrew Shepherd Construction Ltd
  • Ashleigh (Scotland) Limited
  • Bancon Construction Ltd
  • CCG (Scotland) Ltd
  • Central Building Contractors (Glasgow) Ltd
  • CHAP Group (Aberdeen) Ltd
  • City Building (Contracts) LLP
  • Clark Contracts Ltd
  • Cruden Investments Ltd
  • McLaughlin & Sons Limited
  • ENGIE Regeneration Limited
  • Hadden Construction Limited
  • JR Construction (Scotland) Ltd
  • McTaggart Construction Ltd
  • Mears Limited
  • MM Miller (Wick) Ltd
  • Springfield Properties PLC
  • Stewart and Shields Ltd
  • Urban Union Ltd

Cllr Shaw continued: “The 19 suppliers on the framework represent a cross-section of the construction industry in Scotland today. Almost 70% are SMEs and all pay the Scottish Living Wage to employees as standard.

“If we can help to create jobs in the areas where the houses are being built then we’re not only contributing to employment opportunities, we’re helping to create communities.”

The framework, which will be launched on 8th October, is said to allow for “innovative” construction methods, including offsite construction and PassivHaus, with a that also allows contracting authorities to easily select designs to accommodate a range of access needs.

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