Press release

Capita announced as new owner of Constructionline

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Capita is the successful bidder in the sale of Constructionline Business Minister Matthew Hancock announced today (28 January 2015).

Through its database of more than 23,000 companies Constructionline cuts out red tape for the construction industry. It provides a verified list of suppliers who have already passed industry checks, saving time and money. This helps speed up building work across the UK.

Capita has purchased the business from the government for £35 million, following an open competitive sales process which launched last summer. Capita’s bid met the Department for Business, Innovation and Skills’ (BIS) objective of ensuring a safe and efficient continuation of service to existing Constructionline customers, whilst achieving the highest price for the business.

Matthew Hancock said:

Construction benefits from the quality-assured, time-saving service of Constructionline and this sale aims to cut red tape further by freeing it of government ownership. Capita now has an exciting opportunity to expand its valued services to meet the needs of the construction industry and especially small and medium sized businesses.

Commercial ownership will enable the business, which has built up a strong reputation for reducing duplication and tender costs within the sector since its establishment in 1998, to achieve its full potential.

Notes to editors:

  1. Constructionline was established by the Department of the Environment, Transport and the Regions, a predecessor department of BIS, in 1998 to relieve the pre-qualification burden on the construction industry by providing a single point for collection of all standard pre-qualification data by construction suppliers that can then be used by a range of clients.
  2. Constructionline was previously operated by Capita under a concession agreement.
  3. The details of the sale were advertised in the Official Journal of the European Union.
  4. Constructionline independently validates information received from applicants on an ongoing basis. It levies annual fees on the supplier firms for the pre-qualification service it provides. These fees represent the main revenue stream for Constructionline. The level of the fee depends on the size of the firm’s turnover. At present, Constructionline has more than 23,000 suppliers.
  5. Capita is the UK’s largest provider of business process management and professional services solutions, with 64,000 staff across the UK, Europe, South Africa and India. It has 99 staff working for Constructionline across both its offices in Basingstoke and Edinburgh and from home.