South-east framework to cut firms by a fifth

A major local authority framework for the South-east is to be retendered with the total number of appointees reduced by a fifth.

The Improvement and Efficiency South East (IESE) consortium, which covers eight counties from Warwickshire to Kent, has 10 firms appointed to the current arrangement. However, sources have said that plans are to slim this down to eight members.

IESE would not comment on the plans for the framework, saying that it was “still in process and this is a very sensitive time.”

But Building understands that 17 construction companies have prequalified for the new roster and that this includes current appointees and other major contractors in the region.

The incumbents are: Bam, Costain, Kier, Mace Plus, Mansell/Balfour Beatty, Morgan Ashurst, Volker Fitzpatrick, Warings, Wates and Willmott Dixon.

The list will kick in after the current four-year arrangement expires on 19 July and is expected to last for four years. Successful bidders will be announced in May. The construction framework was set up in 2007 with participation of 30 local authorities, led by Hampshire council and is generally used for construction projects over £1m, or an aggregated programme of smaller building works from an early point in the project. Occasionally it is used for projects down to £250,000.

Regional frameworks have become increasingly popular as local authorities grapple with cuts in their settlements with the communities department.

IESE claims it has made £13m in efficiency savings under the arrangement through structured cost benchmarking and aggregate purchases on fixtures and fittings.