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£10bn affordable housing dynamic purchasing system opens for bids

A new £10bn affordable-housing dynamic purchasing system (DPS) is open for bids from contractors.

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A new £10bn affordable-housing dynamic purchasing system is open for bids from contractors #UKhousing

The construction and development DPS, created by the South East Consortium, a procurement vehicle owned by 54 housing associations and councils, is aimed at building social and affordable homes.

Successful bidders would work under five lots, ranging from smaller sites to projects of more than £50m.


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The majority of the work will take place in London and the South East. However, the DPS will be available to all public sector contracting authorities across the UK.

A DPS is an electronic tool used to buy goods, services and works. It is similar to a framework, but allows new suppliers to join at any time.

The model, which replaces an expiring new build framework which ran from 2020, is open for entrants to join up until September 2028.

Between now and then, any of the consortium’s members or the public sector can use the DPS to compliantly run mini-tenders for their development programmes.

Jenna Hicken, director of operations at the South East Consortium, said: “We’re proud to offer our new construction and development DPS to broaden our support to our customers.

“This new procurement solution will provide the flexibility our customers need for their development projects, and compliments our other offers for consultant input for this type of work.

“Our aim is to support our customers with the government’s intention of supplying 1.5 million homes and providing a procurement pathway that connects them with reputable suppliers to achieve the best solution.”

David Smith, director of strategic partnerships at the South East Consortium, said: “This DPS model provides more flexibility both for buyers and the supply chain.

“It is an attractive way to support [small and medium-sized enterprises] and other contractors to have a chance to price relevant development projects that they can fulfil.”

The DPS is intended to run for four years. Mr Smith said the system was valued at up to £10bn, based on “the scale of the market and the new government’s intention to build circa 300,000 social and affordable homes per annum”.

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