22/08/2011 - Thomas Vale secures place on £3billion framework

The four-year framework, which can be extended to eight years, has an estimated value of £3billion and will be used by Birmingham City Council as well as being available to all public sector bodies within the West Midlands. It is anticipated that the framework will include projects that form part of Birmingham’s ambitious £10billion development masterplan, known as the ‘Big City Plan’, published last September.

Thomas Vale, who were previously part of the award winning Birmingham Construction Partnership (previously GF Tomlinson, Thomas Vale and Wates Group) are now joined by Mansell, Morgan Sindall and Willmott Dixon, who have each secured new places on the £3billion West Midlands regional framework.

The four firms clinched places on the key lot covering jobs worth more than £500,000 a year. On present spending forecasts this is worth up to £150m a year.

From the outset, Birmingham City Council will lead the framework with other West Midlands councils expected to sign up as the agreement becomes established.

Tony Hyde, Group Managing Director adds: “Birmingham City Council has continuously been at the forefront of change within the industry and this framework demonstrates their commitment to bettering facilities across the region and beyond as well as the knowledge sharing between the three new contractors.

“For Thomas Vale, no words can describe the sheer pride that we feel securing our place on the Constructing West Midlands Framework. These kind of long-term frameworks allow businesses to grow and sustain an excellent workforce, whilst sharing best practice with principal contractors in the industry. It allows for training, development, employment and integration with stakeholders. Today’s Birmingham is about much more than just ‘building’, it’s about people and community cohesion.”

Ahead of the contract award, Thomas Vale recently announced impressive end of year financial results that continue to demonstrate the company’s underlying strength. Corporate financial stability was again improved in the financial year end to March 2011, with the implementation of key new business involvements, markets and investment in innovation being critical in ensuring their market leading position.

Turnover for the year was increased by 28% to £251.6million (2010 £196.4million) with profits before tax standing at £3.9million. The net asset value increased by a staggering 264% to just over £24.6million (2010 £6.8million) and year end cash balances increased to £21million (2010 £17.8million), the group has no borrowings.

Over the past 12 months, the business has invested heavily in the research, development and implementation of expertise for delivery in new target markets including Facilities Management, Sustainable Solutions and Consultancy; and in January 2011, they implemented a core strategy for Building Information Modelling and Management (BIM); ahead of the UK Government Construction Strategy noting aspirations and expectations for BIM to be utilized on all public sector capital projects before 2013.

The group has been selected for some of the most prestigious capital project contracts in the UK including a £38million New Office Development for Birmingham City Council, a £20million redevelopment of the Telford International Centre for the Southwater Group, the sought after West Midlands Contractors Framework in partnership with Worcestershire County Council and other strategic partners which will deliver c£180million worth of capital projects over a four year period and selective new partnerships with blue-chip retail Clients such as Tesco and Morrison’s delivering refresh and regeneration projects across the Midlands and South.

Tony Hyde, Group Managing Director adds: “The Constructing West Midlands Framework and our appointment to it, cements in place our long-standing commitment to the immediate Birmingham area and the wider locality. In 2011 alone, our return on economic investment back in to the West Midlands region was circa £750million. The West Midlands is our heritage and we are proud to be able to deliver capital projects for local people.”