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Wed November 25 2020

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Strategy shift sees BAM go local to take on SMEs

20 Mar BAM Construct has scored an early success in its new strategy of chasing smaller contracts as well as larger ones.

We reported earlier this week that 39 contactors had been selected for Procure Partnerships’ minor works framework and we reported that BAM was on that list. What was not reported at the time is quite how minor the size of contract that BAM is now chasing – jobs worth as little as £50,000.

This £2.5bn Procure framework for public sector organisations is divided into 10 regional lots across England and Wales, and into two value bands: £50,000 to £1m  and £1m to £4m.

BAM FM was appointed to six of the 10 regions but only in the sub-£1m band. It has not prequalified in any region for the £1m to £5m band, and nor did even want to.

Steve Atkinson, head of projects at BAM FM, said: “This type of work might be smaller in scale to what BAM usually builds, but the clients really value having this work delivered by a trusted partner, and we can make very good returns from it. Now we are on six of the framework’s ten regions, for work in the £50,000 to £1m bracket, we are in a really good position to grow.”

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These projects typically involve smaller capital works on existing buildings such as refurbishment, alternations and small extensions.

He continued: “Often clients put this type of work out to local firms, without the protection of a legal structure, but this framework provides a trusted supply chain in a safe, transparent, legal and auditable structure. As a result, it makes it much easier for clients and removes a major headache for a relatively small job. We specifically targeted the £50,000 to £1m band, and the six geographic areas where we have good experience and resource, because we did not want to overstretch ourselves and risk disappointing the client.”

Mr Atkinson added: “This is also the first framework we have gone for, and we couldn’t have succeeded without the help of the national frameworks team. They shared their valuable experience of both frameworks, OJEU processes and they know the Procure Partnerships client well too. We are all part of BAM, and this new service can be a real help for our existing construction and FM clients. We already had some good leads from the construction part of the business and are really keen for more.”

The six regions BAM is appointed to for minor works are: Yorkshire, East Midlands, West Midlands, London, Southeast and Southwest.

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