Works Contract
A contract for construction or civil engineering works; higher threshold values and specific PCR/PA rules apply.
Definition
A works contract is a contract for the execution of construction or civil engineering works, including new build, refurbishment, demolition, and maintenance of buildings and infrastructure. Works contracts have higher procurement thresholds than supply and service contracts and are subject to specific rules under the Public Contracts Regulations 2015 and the Procurement Act 2023. The historical works threshold has been around £5 million; specific current values are published by Cabinet Office.
How it works in practice
Works contracts in UK public procurement cover everything from school refurbishments and council housing repairs to major infrastructure (HS2, hospital builds, motorway expansions). The procurement procedures used follow PCR 2015 / PA 2023 with works-specific adaptations: thresholds are higher, the Constructionline pre-qualification scheme is widely required, SSIP (Safety Schemes in Procurement) health-and-safety accreditation is typically mandatory, and CDM (Construction Design and Management) Regulations 2015 compliance is required at delivery. Major works frameworks include the Crown Commercial Service Construction Works and Associated Services framework, the National Housing Federation Pre-Qualification framework for social housing, regional construction frameworks operated by the LHC (Local Authorities Hub for Construction) and similar consortia, and Network Rail and Highways England framework arrangements. Works bids typically require more detailed evidence than service bids: detailed method statements, named subcontractors, health-and-safety performance data, environmental management plans, social value commitments tied to specific local outcomes, and (often) BIM Level 2 capability. Pricing is usually fixed-price or target-cost with pain-share / gain-share mechanisms rather than time-and-materials. The successful bidder takes on substantial site management responsibility including subcontractor management, site safety, and programme delivery against published milestones.
Common questions
What is the FTS threshold for works contracts?
Around £5.3 million (figures revised every two years; check the current Cabinet Office threshold notice for exact values). The works threshold is materially higher than the goods and services threshold (around £139,000 for central government). This reflects the higher value typical of construction work and the desire to maintain reasonable competition without disproportionate process cost.
Do I need Constructionline to bid for works contracts?
For UK central government and most local authority works tenders, Constructionline Gold or Platinum is either a hard requirement or a strong de facto requirement. For low-value works (typically under £25,000) it may not be required; check the specific tender. SSIP membership (Acclaim, CHAS, SafeContractor, or equivalent) is also widely required for the health-and-safety aspect.
How do works frameworks differ from service frameworks?
Works frameworks tend to have higher individual call-off values, longer mobilisation periods, and more detailed delivery management. Many works frameworks use NEC (New Engineering Contract) or JCT (Joint Contracts Tribunal) standard forms as the underlying contract; service frameworks more often use the buyer's bespoke service contract. Works frameworks often include specific provision for design and build, contractor design portions, and BIM.