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Capita buys Constructionline for £35m

29 Jan 15 The government has sold its construction database service to Capita for £35m.

The Department for Business, Innovation & Skills (BIS) put Constructionline up for sale last summer and Capita has now been selected as the winner.

Capita was previously running the service under a concession agreement with the government. Business minister Matthew Hancock said that the company was best placed to ensure “a safe and efficient continuation of service while achieving the highest price for the business”.

Constructionline was set up in 1998 by the Department of the Environment, Transport & the Regions, a predecessor department of BIS. Its role is to provide a single point for collection of all standard pre-qualification data by construction suppliers that can then be used by a range of clients. It has a database of more than 23,000 companies, providing a verified list of suppliers who have already passed industry checks, thus cutting paperwork and saving time and money. Its revenue comes from an annual levy on the supplier firms for the pre-qualification service it provides.

Matthew Hancock said: “Construction benefits from the quality-assured, time-saving service of Constructionline and this sale aims to cut red tape further by freeing it of government ownership. Capita now has an exciting opportunity to expand its valued services to meet the needs of the construction industry and especially small and medium sized businesses.

“Commercial ownership will enable the business, which has built up a strong reputation for reducing duplication and tender costs within the sector since its establishment in 1998, to achieve its full potential.”

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