constellia | Procurement, empowered
MAJOR WORKS case study
“Reopening the Market to Deliver a £95m Town Centre Regeneration Scheme“
“Constellia’s solution allowed us to find a Tier 2 contractor we could actually afford to work with. Without that route, this transformational project for South Shields simply would not have gone ahead.”
Richard Spencer, DCO Transformation
Tyne Coast College
REQUIREMENTS
South Tyneside Council needed to deliver a £95m town-centre further education college to replace ageing facilities. Initially procured through a framework limited to Tier 1 contractors, the project became unviable as development costs exceeded the available budget.
With the scheme at risk of losing funding, the Council required a procurement approach that could reopen competition, expand access to capable Tier 2 contractors and deliver the project within a guaranteed, affordable budget.
With multiple funding streams in place, including the North East Combined Authority, Department for Education and UK Government, the project faced additional complexity:
- Requirement to secure a Guaranteed Maximum Price (GMP)
- Complex governance across multiple stakeholders
- Risk of funding loss if timelines were not met
- Limited access to Tier 2 contractors able to deliver via traditional frameworks
The scheme forms part of a broader programme to reinvigorate the town centre, including the redevelopment of vacant buildings into student accommodation and staff offices, increasing footfall and supporting local economic growth.
A new approach was required to increase competition and deliver a compliant, cost-effective solution at pace.
CONSTELLIA SOLUTION
Constellia provided a compliant route to market that enabled the Council to re-engage the supply chain and explore a broader range of capable contractors.
This included:
- Early market engagement and Expression of Interest (EOI)
- A competitive, proportionate procurement process aligned to public procurement regulations
- Access to Tier 2 and regional contractors, expanding beyond traditional framework limitations
- Development of a Guaranteed Maximum Price (GMP) aligned to available funding
- Flexible contracting approach, including:
- Pre-Construction Services Agreement (PCSA)
- Early Works Agreements to enable mobilisation
- JCT-aligned building contracts
This approach enabled early contractor involvement, allowing the scheme to be designed and delivered in budget, while maintaining project ambition.
IMPACT
The project was saved and is now progressing, delivering a landmark education facility that will help regenerate South Shields town centre. By appointing SME contractor Castle, the council achieved significant savings — around 35% on the £100m-scale scheme — while keeping investment within the local economy. The new college will replace failing buildings, support skills development and reinforce South Shields’ global maritime heritage through the world-renowned marine school.
“Constellia enabled us to work directly with Tyne Coast College through a clear and well-managed process. It provided access to an opportunity not typically available to SMEs and allowed us to deliver with confidence.”
Craig muldoon, divisional director build
Castle Building Solutions
Find Out More
Talk to us today to discover how we can help you with your work projects via info@constellia.com or call 0330 320 8020.
