August 10, 2016

£850million construction project for Essex announced

Essex County Council has revealed details of an £850million extra care framework, which could include 30 new construction projects over a seven-year period.

The framework, which is being procured by the local authority, on behalf of 19 different borough councils and NHS trusts, will include the construction of extra care schemes for the over 55s, as well as care and support schemes for adults with disabilities aged between 18 and 55.

Councils and trusts who will be part of the framework include Chelmsford City Council, Colchester Hospital University NHS Foundation Trust, Epping Forest District Council and NHS Property Services.

According to Construction News, successful contractors will need to have the capacity to design, build, finance, operate and maintain schemes procured through the framework to provide an “end-to-end” services package for extra care projects.

The council will deliver a minimum of nine and a maximum of 30 extra care schemes across the framework, with an estimated value of between £194million and £647million.

It will also support bids by councils and trusts to the Homes and Communities Agency for grant funding for new developments, and the council may also apply for additional funding from the HCA to support schemes in its own right. This is estimated to bring the total framework value to £850million.

The council expects to select a minimum of five and a maximum of 15 contractors on the framework, which is due to last seven years.

Adam Davis, a Partner with Palmers who specialises in construction law, said: “This announcement is exactly the sort of positive news that the construction industry needs and the fact that it is happening here on our doorstep in Essex provides a fantastic opportunity for regional construction firms and local subcontractors.

“Although an exact timetable for these major construction and engineering projects is still to be announced, the fact that funding has been approved means that many firms will be looking to formulate their tenders in readiness for the bidding process which will follow.

“Our experience in working with the construction and engineering sector means we are ideally placed to provide independent, practical advice to help firms with their contracts and submissions.”

For help and support on contract submissions and project delivery compliance, please contact Palmers specialist construction team.