Building Materials & Real Estate

Contractors asked to shape £1bn Tees Valley transport procurement

The combined authority has begun market engagement on a five-year road, rail and bus programme, while full delivery remains subject to further funding approvals.

Marta LindqvistNovember 12, 20265 min read0 views
A conceptual aerial view of road, rail, bus and active-travel upgrades linked by a regional transport network, with planners reviewing a physical model in the foreground.

The combined authority behind the Tees Valley transport programme has submitted a five-year wish-list to the Department for Transport and is asking construction firms how best to package the potential work. The move marks the start of market engagement before procurement plans are settled.

The £1bn programme runs from April 2027 to March 2032 and covers major road schemes, railway upgrades, bus infrastructure, active travel and transport technology. The government has already confirmed £978m of core transport funding for the region, but the wider programme includes projects that still require further business case approvals and additional financial backing. The programme covers both new construction and upgrades to existing transport assets.

Major schemes on the list

Major schemes on the list include:

  • the Darlington Northern Link Road;
  • upgrades to the A66 and A689 corridors;
  • a new platform at Middlesbrough Station;
  • the redevelopment of Thornaby Station.

Its wider ambitions include a new station at Teesside International Airport, improvements to Middlesbrough bus station and transport links serving the Teesworks development.

Delivery depends on funding

The authority has acknowledged that delivering the full programme will depend on government support and potentially further outside funding. The confirmed £978m covers core transport funding but not necessarily every scheme in the wider wish-list.

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. He said government backing for the plans was vital because it would allow external bodies to help fund the programme, giving the region the best chance of delivering as many projects as possible in good time.

Procurement and supplier engagement

Despite the funding uncertainties, 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.

The authority is also considering a programme-wide alliance using the FAC-1 Framework Alliance Contract model. Such an arrangement would bring together delivery partners and encourage regional contractors and SMEs to participate.

An initial supplier launch event was held on 9 November. Firms are now invited to provide feedback through a market engagement questionnaire, and contractors have until 1 March 2027 to respond.

The engagement exercise is taking place before procurement decisions are finalised. The authority is seeking industry views on how the potential work should be packaged alongside its evaluation of contract structures and delivery partners.