The procurement and management of the UK’s defence estate is to be radically transformed by the Prime Contacting initiative. This model, developed over 12 months with the construction and facilities industries, will bring new build and maintenance together, under an Integrated Project Team. It will replace the old Works Services Management and Establishment Works Consultant structure.

"This is a Government initiative which is spreading across Whitehall," said Ted Pearson, Commercial Director of Defence Estates, "It will become the default option wherever PFI is deemed inappropriate. We wish to transfer our procurement expertise from other areas to defence estates and to the construction/property industries."

The MoD occupies around 240,000 hectares, 1% of the UK’s land surface. It has 48,000 buildings and structures on 2,600 sites. Over 50% of the estate budget goes on property maintenance and Pearson says the split between capital works and maintenance no longer makes sense. "We are looking for a one-stop shop with through-life costs. These will be large, regional contracts, flexible enough to include full FM."

He acknowledged that the MoD does not yet have the knowledge it needs to procure more effectively: "Frankly, we are not a good client at the moment. We are not as expert as we should be but we are changing that."

Pearson was speaking at a discussion lunch, jointly hosted with Building & Property Group. Sam Maroli, MD of Building & Property Defence, said: "Prime Contracting is an idea whose time has come – these changes will shape the future of procurement. The market in two to five years time will be very different. The major demarcator in Prime Contracting will be the range and depth of soft skills which contractors offer." Selection and evaluation for Prime Contracting is a three stage process with ‘soft’ issues accounting for 40% of the assessment.

Building & Property Chief Executive Clive Groom said: "We are committed to Prime Contracting because it aligns our work for the MoD with our strategic objectives – long-term contracts, risk transfer, partnership and incentives for efficiency improvements."

Richard Byatt