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Wates Construction has taken over a £73.1m contract from ISG to deliver critical prison upgrades for the Ministry of Justice (MoJ), following ISG’s collapse into administration in September 2024.
The contract forms Package 7 of the MoJ’s Contingency Response Programme, created to recover justice projects halted after the failure of ISG.
Package 7 was awarded to Wates on 9 September through a call-off under the Crown Commercial Service’s Construction Works and Associated Services 2 framework.
According to documents accompanying the 13 October contract notice, Wates has been appointed to deliver design and construction works on six sites across England deemed time-critical due to their impact on prison and court capacity. The contract is due to run until February 2028.
Construction News reported in August that Package 7 covers a houseblocks extension programme at HMP Liverpool, plus minor maintenance work at HMPs Wymott, Erlestoke, Risley and Preston, and Liverpool Magistrates’ Court.
Wates is now responsible for progressing design work, and it will take over from the MoJ as lead designer after a validation phase. The firm will coordinate delivery across multiple project categories, including sites where construction had already started before ISG’s collapse.
Under the FAC-1 contract, Wates is required to deliver works using a coordinated design approach, incorporating modern methods of construction including design for manufacture and assembly. It will act as principal designer and principal contractor under both the Construction (Design and Management) Regulations and the Building Safety Act.
The contractor will manage subcontract procurement, stakeholder engagement, and soft landings processes, with all works required to comply with MoJ technical standards. Any derogations must be formally approved.
Design validation and cost forecasting are currently under way. Subcontract package prices, logistics strategies, and health and safety methodologies must be agreed before full site commencement under Notices to Proceed.
The £73.1m value applies to a single works package under the wider Contingency Response Programme. Additional packages may be awarded through the same FAC-1 structure, though each must be separately instructed.