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Airports operator BAA is to stop using its 拢6.6bn construction framework on major projects as part of an overhaul of its procurement strategy.

The firm, responsible for the construction of Terminal 5 and developments around Heathrow, Gatwick and Stansted airports, will now put all projects worth more than 拢25m out to competitive tender.

The move follows a review by Steve Morgan, the firm鈥檚 capital director since January. Sources close to the process said the decision was motivated by a desire to cut 拢200m from the firm鈥檚 拢6.6bn five-year construction plan.

Under the shake-up, only jobs of less than 拢10m in value will be allocated under the framework. For jobs worth 拢10-25m, the framework members will have to go through a mini bidding process. Any jobs over 拢25m, such as the forthcoming 拢100m contract for Terminal 2b, will be procured through open tender.

According to a source close to the situation, the change could also affect some projects already in procurement that do not have a tight timescale for completion.

We鈥檝e got as much chance of benefitting as losing out

Framework contractor

Morgan is also believed to be seeking to make procurement less informal by ensuring no work is begun or prices agreed until full contractual terms and conditions are agreed and signed.

The five-year framework, signed last year, includes Balfour Beatty, Carillion, Costain, Ferrovial Agrom谩n, Laing O鈥橰ourke, Mace, Morgan Ashurst, Skanska and Taylor Woodrow.

Contractors on the framework said the move was a shock, but could offer as many opportunities as threats. One said: 鈥淲e鈥檝e got as much chance of benefitting as losing out. We鈥檝e had some confusing signals from BAA in the past six months, so hopefully this should clear things up.鈥�

A BAA spokesperson confirmed that the organisation had reviewed its procurement strategy, but declined to confirm details or the 拢200m figure. She said: 鈥淕iven the scale of our capital investment, it鈥檚 important that we鈥檙e increasingly efficient and fair. Like most companies, BAA is always looking to reduce costs where it can, and we鈥檒l work with suppliers to do that.鈥�

The news comes as BAA this week confirmed it was contesting Competition Commission plans to force it to sell a number of airports.