NHS Finance

New £47bn construction framework launched for the NHS

Companies are being invited to tender for a new four-year £47bn developer-led framework launched to provide the NHS and public sector with a compliant procurement route to carry out vital expansion plans.

Acting on behalf of Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust (CNTW NHS FT), the framework has been established with the goal of bolstering the construction industry and allowing developers the opportunity to secure new work with the NHS and fellow public sector bodies.

The four-year framework, which will have an option of a further 16-month expansion to April 2026 if necessary, will be open to all NHS and public sector bodies and cover all types of developer-led schemes within the construction industry.

The framework has been broken into three lots, covering a huge variety of works:

• Property Development via Joint Venture (JV) and Special Purpose Vehicle (SPV)
• Long Income Lease and Lease Back
• Property Development Single Site by Development Agreement

Jason Stapley, Managing Director at Pagabo, who has developed the framework on behalf of CNTW NHS FT, said: “We are really pleased to be bringing the first developer-led framework to the market at this time to help public sector bodies procure work with developers that is critical to building a better future.

“It’s of course been a worrying time for the sector, with construction output dropping by record amounts, but despite the exceptional circumstances we have seen a tremendous amount of client access agreements coming through – showing the vital role that frameworks have on the road to recovery.

“Government has already indicated that infrastructure around the UK is to be a focus – and a huge part of a ‘return to normal’, and a framework that allows developer the ability to procure works through a compliant, secure framework will help with creating a more robust sector all round.

“In everything we do, we consider how it will create positive change for the industry as a whole. We are listening to clients and understanding which projects our public sector clients are looking to procure and when. We are sharing that information with our partners, where and when we can - to instil confidence and help them plan for the Covid recovery phase and beyond.”

Further details of the framework agreement can be found via the OJEU contract notice or through the company’s electronic tendering portal.

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