Pagabo National Framework for Major Works – What You Need to Know

Valued at £5 billion across five different lots, the framework agreement will comprise general construction and building works, including new builds, extensions, refurbishments, retrofit and fit-out.

With the tender notice published last week, suppliers are currently undertaking due diligence and making a ‘bid/no-bid’ decision in advance of the 22 June deadline. We give an overview of the tender process for the major works framework, minimum mandatory requirements and key topics within the quality question set.

About the Pagabo National Framework for Major Works

Scope of works under the framework

Pagabo’s major works framework is primarily for projects with a value of £5 million or above, with flexible projects including individual construction packages, project parts/phases or defined programmes of work.

In total, it will encompass design and build, extensions, remodelling or alterations, retrofit and specialist fit-out and mechanical, electrical and plumbing works. However, the tender documents advise that some civils, hard landscaping and infrastructure works may be involved for certain projects.

Framework structure

In total, the framework comprises 37 sub-lots. Lots 1a–e are specialist lots focused around delivery, sustainability and quality, with one supplier appointed to each.

Lots 2–5 are based on project value bands. These are further split into geographical areas (12 for Lot 2, 8 for Lots 3–4 and four for Lot 5) across the UK, including Scotland and Northern Ireland. For each region in Lots 2 and 5, six core contractors and three reserve contractors will be appointed to each geographical area.

As such, Pagabo may appoint up to 197 core suppliers to the £5 billion framework, meaning the return on investment for bidding could be lucrative – providing a steady pipeline of work for four years.

Public sector buyers

As a purchasing organisation, Pagabo allows contracting authorities access to pre-qualified, pre-approved suppliers who are competent and capable to deliver the required works. Authorities who use the framework include (but are not limited to):

• NHS trusts and health service providers
• Police authorities and fire and rescue services
• Highways and infrastructure buyers
• Sub-central authorities, including local councils, combined authorities and housing associations
• Central government authorities and associated agencies.

Works packages can either be direct award or further competition, depending on the requirements of the project – allowing flexibility for suppliers in terms of deliverability and capacity.

What are the minimum requirements and conditions of participation?

As with any public sector tender, bidders must satisfy mandatory minimum criteria and conditions of participation in order for their submission to be considered.

Common Assessment Standard (CAS)

Instead of the Procurement Specific Questionnaire, Pagabo are using the Common Assessment Standard (CAS) as the pre-qualification element of the bid given the sector. Suppliers can gain an exemption for the majority of responses and modules, and an exemption list is published within the CAS – including common accreditations and certifications like ISO 9001, membership with an SSIP scheme and Cyber Essentials Plus.

Maximum turnover

Typically, tender opportunities will have a minimum turnover requirement which bidders must satisfy – usually twice the contract value. Interestingly, Pagabo have explicitly highlighted turnover as ‘a poor proxy for organisational scale or resilience’ for this framework. To fit the profile of a regional contractor, they have consequently prescribed a maximum turnover of £275 million per annum for Lots 2–5, facilitating entrance for Tier 2 contractors onto the framework.

Policies and carbon reduction plan

Lastly, bidders must enclose – or commit to putting a policy in place within the first 12 months of the framework – copies of the following:

• Carbon reduction plan, demonstrating a commitment to tracking Scope 1, 2 and 3 emissions and meeting the government’s net zero by 2050 target
• Social value policy which creates a framework for delivering, monitoring and reporting social value commitments
• Mental health and wellbeing policy applicable to all staff and subcontractors
• Cyber security policy, detailing measures for information security.

How are bidders evaluated on their submission?

For each lot, the evaluation is based on a 60/40 split, with 60% of the tender submission favouring quality, and the remaining 40% awarded on the basis of price. Themes and topics covered in the response include:

• Social value, including increased employment and skills, supply chain engagement and reducing negative environmental impacts
• Risk management approaches, detailing how risks are identified, analysed and mitigated
• Health and safety competence and capability, demonstrating robust measures for safeguarding all stakeholders
• Managing supply chains and ensuring subcontractors are fully aware of the works required
• Innovation and technology in service delivery, driving efficiencies and ensuring a value for money solution for clients and projects.

For specialist lots (Lots 1a–e), bidders must also respond to two additional questions demonstrating the approaches, behaviours and processes they will adopt to ensure collaborative delivery. Bidders will need to demonstrate high-quality approaches to collaborative working, governance approaches and early engagement to receive high marks.

Support with major works and construction frameworks

At Executive Compass, our expert team of bid writers have extensive experience supporting with large-scale construction tenders, and are highly experienced in the themes and topics covered in the question set. With an 85% success rate across thousands of tender submissions, we are ideally positioned to provide high-quality bid writing services.

To find out more about how we can best support you with the Pagabo submission, book a free 30-minute bid consultation today at info@executivecompass.co.uk or via telephone 0800 612 5563.