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NHS Scotland extends major framework amid capital funding uncertainty

Extends

NHS.jpg

NHS Scotland has extended its flagship construction framework for up to two years, citing ongoing uncertainty in public capital funding.

Frameworks Scotland 3, originally awarded in 2020 with a value of £650m, was due to end in November 2025 but will now run until 5 November 2027 at the latest.

The contract covers construction, design, and consultancy services for NHS infrastructure projects across Scotland.

The extension affects all six firms on the existing Frameworks Scotland 3 Principal Supply Chain Partner list:

  • Balfour Beatty
  • John Graham
  • Bam Construction Scotland
  • Kier
  • McLaughlin & Harvey
  • Robertson Construction Group

NHS Scotland said in a modification notice yesterday (28 May) that the move was necessary “due to the current uncertainty around capital funding within NHS Scotland which has continued through 2024/2025”.

It added: “With a number of projects already paused or cancelled, the future pipeline beyond the one-year Scottish Government Budget in December 2024 will not be known.

“Therefore, with such future pipeline uncertainty, it is not possible to go to the market to procure a replacement for Frameworks Scotland 3 at this time.”

NHS Scotland said that any future call-offs under the extended framework would remain within the original £650m ceiling and were expected to be limited in volume.

“It is anticipated, that by extending Frameworks Scotland 3 by up to a maximum period for 24 months, this will enable greater clarity around future pipeline and service needs,” it added.

“This should enable the future project delivery model and associated future procurement to be able to deliver the future NHS Scotland Capital Programme.”

NHS Scotland said the future project delivery model and successor procurement strategy would depend on improved clarity over the capital pipeline. If conditions improve, it may bring forward a new framework before the extended term concludes.

The modification is being made under Regulation 72(1)(c) of the Public Contracts (Scotland) Regulations, allowing changes due to unforeseen circumstances.

Source: Gov.uk Find a Tender

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