Central Housing Investment Consortium framework could run up to 15 years
The race is on for modular specialists to win a place on a new £2bn housing framework
The Central Housing Investment Consortium (CHIC) has unveiled its new deal, which will run for an initial period of five years with an option of extending by two subsequent five-year periods.
CHIC is a consortium of more than 92 housing associations and local authorities. The group is collectively responsible for more than 700,000 homes.
In a contract notice, the organisation said: "CHIC is procuring three contracts for the manufacture, supply and erection of new modular (volumetric) homes with options for all site works.
"For two lots, the works may routinely include all associated construction works on site in a whole scheme ‘turnkey’ approach. For the third lot the site works will be an option."
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Lot one, which is worth £303m, covers the manufacture of modular houses, flats and bungalows, including an option to provide full site construction services for small schemes.
The second lot, which has a value of £572m, covers the same areas as the first but with the proven capability to provide full site construction services for all schemes.
Lot three, worth £1.2bn, covers the manufacture of houses, apartment blocks and high-rise residential towers and individual room pods, with an option for full construction services.
Firms can bid for up to two lots but can only be awarded a place on one.
The document said companies appointed to each lot will be required to have an existing manufacturing base.
It said: "Where demand under the contract supports increased capacity, CHIC or other consortia, will work with the company to establish manufacturing capacity geographically suited to that demand."
Winning firms will mainly be required to work across central and southern England and in Wales but may need to work in all other parts of England, Wales and Scotland in the future.
Companies have until 31 July to register their interest.