Hopes for Further Education spending boost fade, but BSF work progresses
If your were hoping that government-funded education work was going to save the construction industry, the weeklies make unsettling reading.
黑洞社区鈥檚 front-page lead reports that the government has put part of its 拢5bn college-building programme on hold. The Learning & Skills Council, which allocates funding for further education schemes, is understood to have frozen work for at least three months on most projects that have yet to start.
The delay is apparently down to the falling value of its land sales and a 鈥渇ree-for-all鈥 of funding applications as the LSC was overwhelmed by interest from colleges. A source told the magazine: 鈥淪ome projects could be scaled back, and some slowed down. It鈥檚 a blow for the industry. It may be that the prioritisation hasn鈥檛 been done properly.鈥
Meanwhile, Birmingham鈥檚 拢1.2bn 黑洞社区 Schools for the Future programme has deferred a decision on a preferred bidder until February. In Northern Ireland, a judge has insisted that a 拢650m framework for school building be scrapped because its procurement methods were flawed.
But some education-related contracts are being awarded. Construction News reports that a Wates-led consortium narrowly beat Bouygues to preferred bidder status on Luton Borough Council鈥檚 拢270m BSF programme. Three consortia, led by BAM, Sir Robert McAlpine and Trillium, have made it to the short-list stage for 拢450m worth of BSF work in Somerset and Willmott Dixon has won a 拢33m school rebuilding scheme for West Berkshire Council.
However, Bob Rendell, chief executive of Oxfordshire-based contractor Leadbitter, complains to Contract Journal that government frameworks favour large contractors and are destroying regional firms. He calls for the 拢5bn national Academies framework, which will be advertised in March, to be extended to offer opportunities for smaller companies.
鈥淭he only reason for the national route is that national contractors have brainwashed the government into doing it. It鈥檚 about time they woke up to the fact that if they carry on down this route, the large regional contractors will be wiped out.鈥 Leadbitter is now talking to other regional contractors to find a partner to expand its national coverage.
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Construction Manager
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