The Scottish Government has published a contract notice for Scotland’s Public Sector Heat Decarbonisation Framework, creating a significant route to market for suppliers involved in energy retrofit, building services, heat decarbonisation and associated works.
For organisations with the right experience, this framework could open up access to complex public sector projects across Scotland. It is also a demanding opportunity. The procurement is being run through a two-stage restricted procedure, which means suppliers must first pass the Single Procurement Document (SPD) stage before being invited to submit a full tender.
If you are considering this opportunity, the key task is not just to decide whether you can deliver the work. You also need to confirm whether you can evidence that capability clearly, compliantly and competitively.
Framework summary
The framework is being managed by the Scottish Government and is intended to support public sector estate improvement works. It was previously known as the Non Domestic Energy Efficiency Framework and now has a stronger emphasis on heat decarbonisation.
At a practical level, the framework covers building energy retrofit in a broad sense. This may include building fabric works, building environmental services, controls, heating, cooling, ventilation, lighting, water systems, on-site renewables and connections to district heating systems.
The framework is expected to operate as a single-lot, multi-supplier arrangement. Appointed suppliers will compete for individual projects through mini-competitions. The notice states that projects will be delivered through a Design and Build Energy Performance Contract model, with suppliers expected to provide guaranteed energy performance over the term of the call-off contract.
The estimated total value is up to £75 million, although the notice also describes a current forecast range of £50 million to £75 million. The initial framework term is 36 months, with the option to extend by a further 12 months.
Who can use the framework?
The framework is designed for use across the Scottish public sector. This includes central government, health boards, local authorities, universities, colleges and other public bodies.
That wide user base is one of the reasons the opportunity is likely to attract strong competition. A place on the framework may support access to a pipeline of future projects, rather than a single contract. However, the notice is clear that no public sector body is committed to placing orders under the framework, so suppliers still need to compete well at call-off stage.
The framework is aimed at large-scale, complex retrofit and decarbonisation projects, typically exceeding £1 million in value. Smaller projects may also be delivered through it where appropriate, although the notice suggests that other routes may be better suited to lower-value or less complex requirements.
Key dates for bidders
At the time of writing, expressions of interest must be submitted via the PCS-Tender messaging portal by 29 May 2026. SPD returns are due by 12:00pm on 22 June 2026. The estimated date for dispatch of invitations to tender is 12 October 2026.
Suppliers should always check the live PCS-Tender portal before acting, as tender documents, clarifications and buyer instructions can update during the process.
What bidders need to prepare
This is not a framework where a generic construction or building services case study library will be enough. The notice points to a structured SPD selection process, with mandatory and discretionary exclusion grounds, minimum selection criteria and scored selection criteria.
Up to 16 suppliers may be invited through to the ITT stage. The Scottish Government then envisages appointing up to 12 contractors to the framework, although it reserves the right to vary that number down depending on the quality and number of competent bids received.
For the SPD stage, suppliers should pay particular attention to the following areas.
Financial standing and insurance
The notice states that economic operators must have an average annual turnover of at least £2.5 million over the last three years. Bidders must also satisfy financial ratio requirements and hold, or commit to obtaining, specified levels of insurance.
These include Employer’s Liability Insurance of not less than £5 million, Public Liability Insurance of not less than £10 million for each claim, and Professional Risk Indemnity Insurance of not less than £5 million for any one claim.
If these requirements are not already in place, suppliers should establish whether they can meet them before spending significant time on the bid.
Relevant project evidence
Bidders will need to demonstrate previous experience aligned to the scope of the framework. This should be more than a list of completed projects. Strong evidence is likely to show the nature of the buildings, the technical measures delivered, the value and complexity of the work, the role performed by the bidder, the outcomes achieved and how performance was managed.
Because the framework covers energy performance contracting, retrofit and heat decarbonisation, evaluators will need confidence that suppliers can deliver complex projects safely, effectively and across different public sector estates.
Supply chain management
The notice highlights supply chain management, including systems to ensure a resilient and sustainable supply chain. Suppliers using subcontractors will need to show how they manage quality, performance, risk and prompt payment through the supply chain.
This matters because the framework may require delivery across all regions of Scotland, including rural, island and remote locations. A strong bid should explain how resources, subcontractors, materials and specialist capability will be managed in practice, not just named.
Qualifications and standards
The framework requires evidence of relevant educational and professional qualifications. Managerial staff must hold Chartered Status or an equivalent professional qualification relevant to energy efficiency retrofit or clean heat installation of buildings.
Quality, health and safety, and environmental management are also important. Bidders may need to evidence ISO 9001 or equivalent quality procedures, suitable health and safety arrangements, and ISO 14001, EMAS or equivalent environmental management arrangements.
Environmental commitments and wider requirements
Bidders will be expected to demonstrate knowledge of the climate emergency and the impact of their organisation, including scope 1 and 2 emissions. The notice also refers to community benefits, real Living Wage requirements and standards on payment of subcontractors.
There are also cyber security requirements at Stage 2, including a Supplier Assurance Questionnaire aligned to a Moderate Cyber Risk Profile. This may be easy to underestimate on a works-led framework, but it should be planned early.
Bid strategy considerations
Before committing to this framework, suppliers should carry out a robust bid/no-bid assessment. Useful questions include:
- Can we evidence delivery of similar retrofit or heat decarbonisation projects?
- Do we meet the turnover, insurance and financial standing requirements?
- Can we support delivery across Scotland, including remote and island locations?
- Do our professional qualifications, quality systems and environmental management evidence match the buyer’s expectations?
- Can we explain how we will deliver guaranteed energy performance, not just install measures?
- Are subcontractors needed, and can we manage their SPD evidence and inputs in time?
The opportunity is attractive, but the submission is likely to require careful coordination between commercial, technical, operational, finance, quality, H&S, environmental and supply chain teams.
How AM Bid can help
Framework opportunities like this can be difficult to manage alongside day-to-day delivery. There are strict instructions, multiple evidence requirements and limited room for vague answers.
AM Bid supports suppliers bidding into Scottish public sector frameworks, including SPD responses, bid writing, tender management and final reviews. We can help you assess the opportunity, map your evidence against the criteria, structure responses clearly and keep the submission on track.
If you are planning to bid, our bid writing support in Scotland can help you turn technical delivery detail into clear, scored responses. For larger submissions, our bid and tender management support can help coordinate responsibilities, deadlines, clarifications and review stages. You may also find our guide to Scottish frameworks useful if this framework forms part of a wider growth plan.
Next steps
If this framework is relevant to your business, start by reviewing the live tender documents and checking the minimum requirements. Do not leave evidence gathering until the writing stage. For a restricted procedure, the SPD stage determines whether you get the chance to compete at ITT.
A strong response should make it easy for evaluators to see that you understand the technical, commercial, environmental and delivery risks involved. That means using specific evidence, clear responsibilities and a joined-up approach from the outset.
To discuss support for this opportunity or another Scottish public sector tender, contact AM Bid.