What happened
Valleys to Coast, a housing association based in Wales, has started procurement for a framework contract worth up to £250m over three years. According to reporting by Construction News, the framework will cover new-build construction, regeneration, refurbishment, alterations, and extensions of housing projects across Wales. The framework is divided into four lots, each valued at approximately £62.5m excluding VAT.
The agreement is structured as a multi-supplier arrangement. Each lot refers to a different project size, with lot one for schemes of one to five homes, lot two for projects involving six to 15 homes, lot three for 16 to 49 homes, and lot four for developments comprising 50 or more units. Contractors can apply for up to two lots, with a maximum of four contractors to be appointed per lot.
Work under the framework may be delivered through either traditional build contracts or design-and-build contracts. Valleys to Coast aims to select suppliers based on a combination of cost and quality, using scored assessments for each bid. The framework is due to commence on 30 March 2027 and will conclude on 30 March 2030, though there is an option for a one-year extension.
The background
Valleys to Coast serves as a provider of affordable housing and regeneration projects across Wales. The new framework aims to replace or supplement existing procurement routes for large and small construction projects over several years. According to Construction News, the lots are designed to match a range of project sizes, allowing for both small refurbishment jobs and larger new-build housing developments.
Frameworks such as this are used by housing associations to secure a pool of pre-qualified contractors who can be called upon to deliver works as needed, without the need for separate full-scale procurement exercises on each job. In this case, the framework will operate under the requirements of the Procurement Act 2023. The housing association also reserved the right to commission additional works within the framework's lifetime, if new requirements arise.
The procurement is being carried out using a multi-stage process. Interested contractors must first complete a prequalification questionnaire. Those shortlisted in this stage will then receive invitations to submit formal tenders. The prequalification stage closes to applications at noon on 2 December, with enquiries due by 20 November. The estimated date for awarding the contracts is 10 December.
What people are saying
Valleys to Coast has stated that the selection process for the framework will focus on both cost and quality factors. The highest scoring bidders in each lot will be appointed. Framework contracts are increasingly used by social housing providers across the UK to provide flexibility and reduce procurement cost and time for recurring and maintenance works.
Welsh contractors and national firms can apply, provided they meet prequalification criteria outlined in procurement documents. The ability to bid for up to two lots allows companies to focus on their core strengths and capacity limits. The process intends to create competition, attracting a range of contractors from small local firms to larger regional or national organisations.
What happens next
Procurement is underway for all four lots with the first step being completion of a prequalification questionnaire. Interested parties must submit requests to participate by noon on 2 December. Contractors can submit enquiries about the process until 20 November.
After receiving all expressions of interest, Valleys to Coast will issue formal invitations to tender to shortlisted firms for each lot. The selection will be finalised based on assessments of both bid price and quality proposals. The association expects to make its decision and notify successful contractors by 10 December.
The framework will come into force on 30 March 2027 and operate for three years, with the possibility of a one-year extension. During the contract life, Valleys to Coast may commission further work through the established supplier pool, subject to evolving needs and available funding.