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Social housing framework deal announced

Social housing procurement firm Cyntra has awarded a framework deal worth a total of £800 million over four years.

Apollo Property Services, Bramall Construction, Breyer Group, Kier Support Services, Mears and Vinci Construction have won places on the framework, worth £200 million a year. The award notice says a total of £600 million of the work could be subcontracted.

The contract will apply Cyntra members, including local authorities and arms length management organisations in outer London and includes major repair and maintenance work but not new build. It also excludes asbestos handling and disposal.

A Cyntra spokesman said it had been working with the Home and Communities Agency on developing a new procurement model, based on benchmark pricing, which had been applied to the new social housing deal.

Each contractor was asked to bid a price range against the benchmark figure. Contractors were then expected to work together to bring down prices against the benchmark, year-on-year, through operational innovation and technical efficiency, the spokesman said.

In mid-September Cyntra expects to award additional social housing contracts for London and the Home Counties for around £50 million a year.