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Mon March 08 2021

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Government to sell Constructionline

16 Jul 14 The government has announced plans to sell Constructionline, its online construction supplier database.

It said that private ownership would allow Constructionline “to grow and achieve its full potential, including offering new additional services”.

Constructionline was set up by government in 1998 to meet demand for a cost-effective and easy to use service for suppliers in the construction industry. Through its database of more than 22,000 suppliers, Constructionline links buyers with suitable contractors, ensuring supplier data such as health & safety, technical ability and financial information is kept up to date. Suppliers also benefit from access to more than 8,000 buyers.

It is owned by the Department for Business, Innovation & Skills (BIS) and managed on its behalf by Capita.

Constructionline collects supplier firms’ data on an annual basis and independently validates it. Supplier firms pay an annual fee for the pre-qualification service it provides. The level of the fee depends on the size of the firm’s turnover. These fees represent the main revenue stream for Constructionline.

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A BIS spokesperson said: “Constructionline offers valuable services to the construction industry, particularly small and medium sized businesses. It has grown significantly under government ownership, and now is the time to enable it to expand further to meet the needs of a changing industry.

“Gaining access to private capital will enable Constructionline to become even more competitive and branch out into new markets.

“Bids will be welcomed from buyers who plan to grow the services provided by Constructionline.”

A trade sale is anticipated and a contract notice for the sale of Constructionline will be published in the Official Journal of the EU.

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