Building Materials & Real Estate

Tees Valley seeks contractor input on £1bn five-year transport programme

The combined authority has asked firms how work spanning roads, rail, buses and active travel should be packaged, with multiple contracts and a possible alliance under review.

Priya RaghunathanNovember 12, 20265 min read2 views

Concept illustration of a multi-modal transport network shown as an isometric planning drawing, with a road link, a rail platform and a bus interchange.

The Tees Valley combined authority has begun approaching construction firms for advice on how its £1bn five-year transport programme should be packaged for procurement, having submitted the wish-list to the Department for Transport.

The programme is planned to run from April 2027 to March 2032 and covers major road schemes, railway upgrades, bus infrastructure, active travel and transport technology.

The authority presents the list as a £1bn programme, while the government has confirmed £978m of core transport funding for the region; projects beyond that core provision carry their own business case approval and financing requirements.

Schemes named in the submission

  • Darlington Northern Link Road
  • Upgrades to the A66 and A689 corridors
  • A new platform at Middlesbrough Station
  • Redevelopment of Thornaby Station
  • A new station at Teesside International Airport
  • Improvements to Middlesbrough bus station
  • Transport links serving the Teesworks development

The authority has acknowledged that delivering the full programme depends on government support and potentially further outside funding.

Steve Harker, the combined authority's cabinet member for transport and infrastructure, said it was crucial for people to understand that while the body is devolved, major transport schemes often require significant additional funding. Government backing, he said, was vital because it would allow external organisations to help fund the programme and give the region the best chance of delivering as many projects as possible in good time.

Multiple contracts and a possible alliance

Despite the funding uncertainty, the authority is pressing ahead with early supplier engagement to prepare its procurement strategy. It expects to let multiple contracts covering highways, rail, civil engineering and specialist infrastructure, rather than award one giant deal.

It is also considering a programme-wide alliance using the FAC-1 Framework Alliance Contract model, which would bring delivery partners together, with the stated aim of encouraging regional contractors and SMEs to take part.

The market engagement questionnaire gives firms the chance to comment on how the potential work should be packaged before the procurement strategy is settled.

An initial supplier launch event was held on 9 November. Firms are now invited to give feedback and to register an interest, with responses due by 1 March 2027, about a month before the programme period is scheduled to begin.

Because the list mixes major road and rail construction with bus, active travel and technology elements, any procurement structure will have to accommodate large civil engineering packages alongside specialist infrastructure work.