Birmingham City Council

Procurement policy
Birmingham City Council procures all its building work via its urban design department. A wide range of contracts is used, including JCT, design-and-build and PPC 2000. The ICE form of contract is used for highways work, and term contracts for maintenance work.

Some major housing schemes are procured via the housing department. PFI has been used for large grouped school deals.

Current and future projects
Birmingham council had a number of major projects, which have accounted for the boost in expenditure over recent years. According to its most recent budget book, this near £200m level of capital expenditure is not expected to last, with spending budgeted to fall back to about £110m over the years 2003/04. This relates primarily to a downturn in housing expenditure, and the expected transferral of the council's housing estate to 10 registered social landlords. If approved, this should result in a 10-year housing investment programme that could require capital expenditure of about £100m a year.

Of the council's capital spending in 2000/01, £23m went on land and buildings, £6.8m on investment properties, £18.6m on infrastructure, and £59m on council dwellings. Looking over the next few years, major projects under way or planned include: Masshouse Circus – a £24m infrastructure project, due for completion in late 2003; Midland Metro – a £55m extension to Midland Metro Line 1; A38 Technology Corridor – major relief roads along the A38 were recently given the go-ahead by government. Phase one of the Northfield project will go ahead first, and the Selly Oak scheme (£40m) is planned to start in 2004. In the schools sector major projects are dominated by PFI, although the council's underlying level of capital expenditure will remain relatively strong.

Essential information
One of the largest developments planned is the second phase of the Masshouse quarter. Birmingham council recently told developers what kind of proposals it was seeking for the next phase. Bidders have been invited to formulate innovative plans for the phase, which will include four lots of land totalling almost six acres. Outline consent has already been granted for: a 10,000 m² hotel on one plot; 5500 m² of residential, retail and leisure on another; 42,800 m² of office, residential and leisure space on the third; and 20,000 m² of offices and student accommodation on the final plot. The contract for the first phase of Masshouse, gateway to the city's £6bn Eastside regeneration, was won last year by developer David McLean. The overall plan for Eastside includes 265,000 m² of offices, 80,000 m² of retail, leisure and hotel space, and 266,000 m² of residential space.