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Article Details

Published Date: 27-10-2016
Author: Executive Compass
Category: News & Insight
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The expansion of Heathrow Airport and the creation of the third runway were given Government approval earlier this week, a move which is set to create 77,000 additional local jobs and up to £61 billion of economic benefits.

On Tuesday, a spokesman for the Department for Transport said: “In a major boost for the UK economy the government today announced its support for a new runway at Heathrow — the first full-length runway in the South-East since the Second World War.”

However, the expansion is likely to create widespread legal challenges and protests as a many environmental and social issues are brought into question.

Environmental Issues

The runway, which could be built by 2025, brings a number of environmental issues into question. It would lead to almost 50% more planes over London and the increased pollution and noise would affect people living around Heathrow, as well as those living near the flightpath. As argued by all opposed to the expansion, this is in contradiction to Britain’s commitments to climate control, and this issue alone looks to be a major cause of dispute for the project.

Heathrow Procurement

For prospective suppliers to Heathrow Airport, the company has a dedicated eSourcing portal for tendering and publishing contract opportunities. You can find out more here about Heathrow Airport’s process and any current contract notices.

Heathrow Airport stipulates that these are the main areas that may be looked at when assessing suppliers’ bids:

  • Health and safety
  • Delivery methodology
  • Resources (internal and external)
  • Behaviours
  • Innovation
  • Information management
  • Quality management
  • Risk and value management
  • Sustainability
  • Commercial focus and acceptance of Heathrow’s terms and conditions.

Tendering for Contracts

Arup, CH2M, MACE and Turner & Townsend have already been selected to work alongside Heathrow Airport to deliver the expansion, and it is expected that a number of opportunities will be put out to tender for subcontractor opportunities and auxiliary services. Now that they have been given the go-ahead, detailed contracts will be drawn up with the four partners, and the £16 billion project will be set into motion. Work is expected to begin in 2020, which will involve a number of companies and subcontractors.

When tendering for projects involved in the Heathrow expansion, it is likely the bidding process will not only focus on the points on which Heathrow Airport assess suppliers, but will also require bidders to concentrate on environmental benefits, social value and minimising risk, as these areas are already under high scrutiny with the expansion project.

SMEs from across the UK will have contract opportunities available to them as this project is finally set into motion, and it is important to be ready to bid and have the skills and competences to deliver a winning tender submission, as the process is likely to be highly competitive.

For help and support for any PQQ and tender submissions, find out more about our services or contact our team to discuss your requirements in more detail.

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