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In a tremendous opportunity for contractors, the government has unveiled a highly lucrative offsite construction framework with an estimated value of £10 billion. The Crown Commercial Service (CCS), acting as the government's esteemed procurement body, recently introduced the Offsite Construction Solutions (OCS) framework, opening its doors to all government departments and arm's-length bodies.
The OCS framework is impressively comprehensive, encompassing a wide range of activities within the offsite construction industry. Its scope extends to cover crucial aspects such as design, fabrication, physical delivery, construction or installation, and ongoing maintenance of prefabricated buildings. One of its key advantages lies in providing direct access to a diverse group of manufacturers offering a comprehensive array of offsite construction solutions. The OCS framework serves as a worthy replacement for its predecessor, a £500 million agreement launched four years ago, which primarily focused on modular building solutions. Noteworthy participants in the previous agreement included industry-leading suppliers such as Caledonian, Elliott, McAvoy, Portakabin, and Wernick, alongside 18 smaller firms.
For contractors interested in seizing this remarkable opportunity, the deadline for submitting proposals is set for October 7th. Once the selection process concludes, the four-year contract is expected to take effect from January of the following year. It's important to note that the contract offers an enticing option for a three-year extension, potentially fostering a prolonged collaboration between the government and the chosen contractors. In an effort to provide further clarity and insight into the framework's new multi-lot structure, the CCS has thoughtfully organised a bidders' day, scheduled to take place on September 1st. This event will allow interested parties to gain valuable information and address any inquiries they may have.
This government initiative stands as the latest milestone in the ongoing effort to target and develop the offsite construction sector. Last year witnessed the emergence of an offsite housing framework valued at an impressive £600 million, featuring the active participation of companies like Ilke Homes, Impact Modular, and TopHat. Another invitation was extended to companies to bid for a substantial £1.1 billion offsite housing agreement, with a specific emphasis on solutions that align with and promote net-zero carbon emissions objectives. Additionally, in January 2020, renowned contractors including Laing O'Rourke and Wates secured esteemed positions within a remarkable £3 billion modular schools framework specifically designed to cater to England's educational infrastructure needs.
The modular housing industry has received significant attention and investment from key stakeholders throughout the past year. An exemplary demonstration of this trend was witnessed when L&G injected a substantial £6 million into its modular business in November, effectively signalling its strong commitment to drive the company's growth and spearhead its endeavours in the modular construction landscape. This impressive investment serves as a catalyst, propelling L&G into an exciting next phase of expansion, development, and innovation within the realm of modular construction.