Construction projects in the defence sector
Produced in partnership with Silver Shemmings LLP
Construction projects in the defence sector

The following Construction guidance note Produced in partnership with Silver Shemmings LLP provides comprehensive and up to date legal information covering:

  • Construction projects in the defence sector
  • Spending policy
  • Procurement policy
  • Public procurement rules
  • Defence Reform Act 2014 and the Single Source Contract Regulations 2014
  • Standard form construction contracts

Brexit impact—public procurement: The UK public procurement regime derives from EU public procurement laws, and is therefore impacted by the UK’s withdrawal from the EU. For general updates on the process and preparations for Brexit, see Practice Note: Brexit timeline. For further reading on the impact of Brexit on public procurement, see Practice Note: Brexit—the implications for public procurement.

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.

Spending policy

Defence is organised into six ‘Top Level Budgets’:

  1. Head Office and Corporate Services

  2. Navy Command

  3. Army Command

  4. Air Command

  5. Joint Forces Command

  6. 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:

  1. strategic and/or sensitive equipment—dealt with by the Director of Strategic Programmes at Head Office

  2. the operating costs of Defence Equipment and Support (DE&S)—dealt with by the Chief Executive of DE&S

  3. infrastructure and operating costs—dealt with by the DIO. Projects relating to