£5.2 Billion Residential Development Framework Launched in the South of England, Promising a Thriving Construction Sector

Posted on 19 May 2021

In a significant development for the South of England, a residential development and construction framework with an impressive value of £5.2 billion has now opened for tender. This framework, known as the Southern Construction Framework (SCF), represents a collaborative effort between two influential councils, namely Hampshire Council and Devon County Council. Spanning a period of four years, the SCF framework aims to serve as a comprehensive platform accessible to all public entities operating in the southern region.

To ensure efficient management and diverse opportunities, the agreement has been thoughtfully divided into four lots. Two of these lots are dedicated to design-and-build contracts, while the other two lots focus on development deals. The design-and-build lots themselves have been further categorised based on the scale of the projects they encompass. One lot specifically targets schemes involving 10-75 houses, while the other addresses larger schemes exceeding 65 houses. Similarly, the development lots adhere to the same classification criteria. It is anticipated that SCF will appoint contractors to multiple lots, promoting a varied and robust approach to residential development and construction.

In order to ensure a fair evaluation process, SCF has outlined specific weightage criteria for the bidding process. The pricing aspect of the proposals will carry a 20% weightage, while the emphasis on quality is even more pronounced with an 80% weightage. This approach encourages contractors to not only provide competitive pricing but also prioritise e delivering exceptional quality in their projects. Interested parties seeking to participate in this lucrative opportunity must submit their requests by July 2, 2021, enabling SCF to proceed with the selection process.

This new framework is poised to replace the current SCF residential framework, which was initially procured in 2019 and is scheduled to conclude next year. Notably, the previous framework involved esteemed contractors such as Bam Construct, Galliford Try, Kier, and Mace. With the implementation of the new SCF initiative, the residential development and construction landscape in the South of England is set to witness a dynamic shift, paving the way for innovative projects and collaborations.

The SCF initiative follows hot on the heels of another substantial housing framework, worth an impressive £1.2 billion, which was launched earlier this year by Network Homes and focused on London and the South East. The industry continues to experience an upward trajectory, with real estate investor Apache Capital recently announcing ambitious plans to invest £1.6 billion in constructing 3,000 new rental homes. These investments will primarily be concentrated in the vibrant regions of Oxfordshire and Cambridgeshire, further bolstering the housing market and meeting the growing demand for quality rental properties.

These developments reflect the concerted efforts and significant investments being made in the residential development and construction sectors in the South of England. The opening of the SCF framework, combined with other ambitious initiatives, sets the stage for transformative projects, job creation, and economic growth, ultimately enhancing the quality of life for residents in the region.

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