Fusion21 Opens Bidding For £1bn UK Construction Framework

Procurement organisation Fusion21 has launched a £1bn construction framework, offering contractors opportunities to secure work on housing, refurbishment and public sector building projects across the UK over four years.

The framework, which is scheduled to begin in May 2027, will cover projects ranging from residential retrofits and energy-efficiency improvements to new schools, healthcare facilities and other public buildings.

According to a tender notice published on 5 November, the procurement is divided into two lots worth an estimated £500mn each, covering housing and non-domestic construction.

Both lots will operate across 10 regions, with contracts divided into three value bands: projects worth up to £5mn, those between £5mn and £15mn, and schemes valued at £15mn or more.

Contractors will need to meet minimum annual turnover requirements of £10mn, £30mn and £50mn respectively to qualify for the different bands.

Fusion21 said the framework was designed to provide opportunities for small and medium-sized construction businesses, although the financial thresholds could limit participation by smaller contractors.

Up to 10 suppliers will be appointed to each combination of region, lot and contract value, with companies permitted to compete for multiple categories.

The housing programme includes refurbishment, cladding, retrofit and new-build projects, including extra-care accommodation, rooftop developments and infill housing schemes.

The non-domestic element covers construction, extensions and conversions involving schools, healthcare facilities and other publicly owned buildings.

The framework will allow participating public bodies to award contracts directly to appointed suppliers or conduct further competitions.

Quality will account for 70 per cent of tender assessments, with cost representing the remaining 30 per cent.

Applicants must also demonstrate fair payment practices and effective supply-chain management, alongside meeting insurance and financial resilience requirements.

Fusion21 will assess whether bidders are likely to remain financially viable throughout the four-year programme, reflecting concerns about contractor stability in a sector facing pressure from labour, materials and financing costs.

Suppliers will typically pay framework fees of between 1 and 4 per cent, depending on the value and nature of contracts awarded.

The deadline for applications is noon on 8 January 2027, with appointment decisions expected in April.

The framework is scheduled to operate from 24 May 2027 until 23 May 2031, providing a potential pipeline of construction work for contractors seeking greater visibility over future revenues.