Pagabo has launched a £2bn public-sector construction framework designed to widen access to regional contractors and strengthen local supply chains across the UK. The National Framework for Small to Medium Works 2026 will give public-sector organisations a structured route to appoint contractors for projects ranging from smaller building works to contracts worth up to £20m.

The four-year framework is expected to become operational in April 2027. Construction Review’s report covered the tender launch, while Pagabo’s announcement confirms that this is the third generation of the framework, managed on behalf of contracting authority The Education Alliance. Its estimated value is up to £2bn, with up to 75% of contractor appointments intended for regional businesses.

The procurement structure is central to the opportunity. Five main lots provide different routes for contractors, with four divided into 40 geographical sub-lots. Lot 1, the Collaborative Partner lot, is reserved for national contractors and covers projects valued between £0 and £20m. The remaining lots cover regional contracts in four bands: up to £1m, £1m to £5m, £5m to £10m and £10m to £20m. This approach gives buyers access to both national delivery capacity and contractors operating closer to individual projects.

The framework covers new-build construction, refurbishment, highways, public realm, accessibility, decarbonisation and mechanical and electrical engineering. Its potential users include local and combined authorities, central government, NHS trusts, housing associations, education providers, public utilities and emergency services. The tender information confirms that bids will be evaluated on a 70% quality and 30% price basis.

For regional businesses, the arrangement creates an opportunity to compete for public-sector work across a defined geographical area and range of contract values. It also gives buyers a procurement route that can support local delivery while maintaining national procurement assurance. Pagabo will manage the framework through its Pagabo+ digital model, which it says provides a central environment for framework management, delivery, reporting and compliance under the Procurement Act 2023.

The tender submission deadline is 5 January 2027, with an estimated award decision in April 2027. The framework is expected to run for four years. Its £2bn value is an estimated spending ceiling rather than a commitment to award that amount of work, so actual contract opportunities will depend on participating organisations’ requirements and procurement decisions.

For the sector, the lesson is direct: well-structured frameworks can make public procurement more accessible while helping buyers connect investment with regional delivery capability. By combining national oversight with 40 geographical sub-lots, Pagabo is creating a route for public-sector projects to reach a wider contractor base and support local supply-chain participation.

Source: Construction Review, Pagabo Small Medium Works: Procurement Specialist Launches £2B Framework