BAA launches procurement overhaul

Client BAA has overhauled its framework deals with contractors, consultants and suppliers. The firm is launching a third generation framework for the construction industry in the next year, which will deliver a £9.5bn capital investment plan in the next decade.

Work will now be split into four main areas:

• Complex projects
• Commodities
• Consultants
• Technical and critical business systems

These will have a roster of preferred suppliers in each segment. An OJEU notice to select suppliers for the complex category will be sent out shortly, the firm said.

The firm said it was goint to mix the best that it had learned from the T5 project as well as new deals for major work at Heathrow East and Stansted Airport to influence the new deals.

Commercial director Ken Owen said: "We recognise that many of our projects are complex, with significant risk and so partnering and commercial rigour are both instrumental in driving best long-term value for our projects and our customers. Over the last two years we have been applying greater commercial tension into all our non T5 projects and have achieved good results. Our new strategy provides us with a platform to raise the bar further and ensure that we continue to drive better value across all areas of our capital investment programme.”