UK Parliament lets initial £400 million contracts

The UK Parliament has let initial NEC3 contracts worth up to £400 million for renovating its large historic estate on the banks of the Thames in London. The total cost of the restoration and renewal works could be up to £5.7 billion and most likely use NEC form of contracts.

In July  2017, long-term NEC3 Professional Services Contracts (PSC) worth up to £336 million were awarded to BDP and CH2M for advising how to keep the 3.2 ha grade-I-listed Palace of Westminster estate – parts of which are nearly 1000 years old – running safely for the foreseeable future.

ADVISORY SERVICES

BDP’s contract, worth up to £21.3 million a year, is for architectural and building design services while CH2M contract is worth up to £8.6 million a year for programme, project and cost management services. The advice is being commissioned and paid for on a task-by-task basis using NEC3 Professional Services Contracts.

The primary tasks will be to establish the condition of all buildings and services across the estate, including asbestos content, security, fire safety, heating, ventilation, water supply, drainage and electrical systems.

BDP and CH2M will then plan and oversee the estate’s restoration and renewal which, depending on whether the buildings remain operational or not, could cost from £3.5 to £5.7 billion and take 6 to 32 years to complete.

BIG BEN REPAIRS

As the restoration and renewal programme is unlikely to begin until the early 2020s, more urgently needed repairs to Big Ben have had to start early. An NEC3 Engineering and Construction Contract (ECC) was let to Sir Robert McAlpine in September 2017 for conservation of the 1859 clock tower.

With a total estimated budget of £61 million, the work involves repairing and redecorating the 96 m tall brick-and-stone Elizabeth Tower, dismantling and restoring the Great Clock and its four 7 m diameter faces, renewing building services, improving fire safety and installing a lift. For health and safety reasons the Great Bell will be silenced until completion in 2021.

HS2 AND CCS

UK government entities High Speed Two (HS2) and Crown Commercial Services (CCS) have also let over £10 billion of new works and services under NEC contracts.

Following royal assent for the first phase of the UK’s £55.7 billion second high-speed rail project in February 2017, UK government-funded company HS2 Limited signed the main civils contracts on 1 August 2017.

Worth £6.6 billion, all seven contracts were let under an NEC3 Engineering and Construction Contract.

HIGHWAYS ENGLANDS LETS NEC4 CONTRACTS

Highways England has also started the bid to select contractors to replace the current Collaborative Delivery Framework. This new framework has an estimated value of £8.7b from 2018 to 2014, and contractors will be engaged under NEC4 contracts.

This article was written by Neccontract, and if you would like to know more about NEC4 contracts then please visit us at the Public Sector Show at stand A25.