Pagabo doubles project size limit for medium works framework to £20m

What happened

Pagabo has announced that its upcoming National Framework for Small to Medium Works will allow individual project values of up to £20m. This is an increase from the previous £10m cap set by Pagabo’s 2023 Medium Works Framework. According to Pagabo, this change comes as the company prepares to launch its new £2bn procurement framework, which will run for four years starting in April 2027.

Under the framework, contractors can bid for places covering a range of project types. The process is now open, and the framework will ultimately replace the 2023 Medium Works Framework. Contractors who wish to participate have until 5 January 2027 to submit their applications through Pagabo’s tender portal.

The background

Pagabo’s 2023 Medium Works Framework was valued at £1bn in total and allowed individual projects valued at up to £10m. It included 94 contractors across different lots. The new framework aims to double the total value to £2bn over its four-year term. It will cater to projects spanning new build, refurbishment-projects), highways, public realm, accessibility improvements, decarbonisation and mechanical and electrical engineering.

The framework will be split into five main lots. Four of these will be divided into regional sub-lots, while the fifth is reserved for national contractors. The regional lots are split by project value: up to £1m, between £1m and £5m, £5m to £10m, and £10m to £20m.

Pagabo expects that up to 75 per cent of successful appointments will be regional contractors. These regional lots are intended to ensure opportunities for contractors working in specific areas across 40 geographic regions.

What people are saying

Jason Stapley, Pagabo’s chief procurement officer, said the framework is designed so that “regional lots are reserved for regional firms.” Stapley added that Pagabo wants to offer what he called a “ready-made and compliant way” for contractors and public sector clients to deliver local projects and encourage local economic growth, according to Construction News.

Pagabo also stated that the framework is open to councils, NHS organisations, education providers and housing associations as clients. Evaluation for contractor appointments will be based 70 per cent on quality and 30 per cent on price, according to Pagabo’s statement.

What happens next

Contractors interested in joining the framework have until 5 January 2027 to make their submissions via Pagabo’s tender portal. The framework is scheduled to become operational in April 2027. Once launched, it will be available for use by public-sector clients for works up to £20m in value. Applications will be divided and considered by project size and region in line with the new lot structure.

This procurement process will replace the current Medium Works Framework, which is expected to conclude as the new contract becomes available. Pagabo will notify successful applicants in due course following the evaluation of submissions. The company has not released further details on shortlist timings or contract award dates.