The following Construction guidance note Produced in partnership with Silver Shemmings LLP provides comprehensive and up to date legal information covering:
This Practice Note looks at construction and engineering projects in the defence sector. It provides information about the Ministry of Defence’s (MOD) spending and procurement policies, the applicable public procurement rules, the Defence Reform Act 2014 (DRA 2014) and Single Source Contract Regulations 2014 (SSCR 2014), and the use of standard form construction contracts.
Defence is organised into six ‘Top Level Budgets’:
Head Office and Corporate Services
Joint Forces Command
the Defence Infrastructure Organisation (DIO)
The MOD has stated that the defence programme must be 'affordable, joined-up and aligned to policy'. Head Office allocates the majority of funding through the Command Top Level Budgets (2–5 incl. above).
Exceptions apply to funding of the following:
strategic and/or sensitive equipment—dealt with by the Director of Strategic Programmes at Head Office
the operating costs of Defence Equipment and Support (DE&S)—dealt with by the Chief Executive of DE&S
infrastructure and operating costs—dealt with by the DIO. Projects relating to new capabilities are funded by Head Office before being passed to the DIO for implementation
The MOD searches within both the global and domestic defence-contracting markets for reliable, proven products. This stance is subject always to the need to protect national security and any domestic technology advantage.
The MOD’s policy priorities include:
25% of defence spending to
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