Unawarded contract
This contract will not be signed.
Date of decision not to sign contract
15 September 2025
Reason for not signing contract
Market Engagement for Biodiversity Net Gain potential Procurement.
Approach
Engagement focused on the maturity, capacity and commercial models of potential suppliers and the legal mechanisms for securing long term biodiversity outcomes. The scope covered:
• Regional supply and pricing variability
• Delivery and monitoring assurance (30+ years)
• Legal structuring (Conservation Covenants, S106 agreements)
• Procurement model preferences (DPS, framework, co-development)
Methodologies included structured supplier interviews, EOI submissions, pricing analysis and legal model comparisons. Engagement was carried out with habitat banks, conservation charities, brokers, social enterprises and platform operators.
Findings
The BNG market is developing rapidly but remains fragmented and unevenly distributed. Providers include:
• Commercial providers offering off the shelf units with legal assurance
• Charitable conservation bodies offering long term stewardship with strong ESG alignment, but limited scalability
• Emerging platforms and brokers providing flexible but less proven models.
Costs of BNG units vary, but often exceed our internal affordability cap of £20,000 per unit.
Suppliers prefer procurement models that are open, flexible and allow for entry and scalability over time, such as Dynamic Purchasing Systems and Framework Agreements. Spot purchases and one off tenders were discouraged.
Conclusion
National Highways concludes its 2025 Biodiversity Net Gain market engagement with thanks to stakeholders, suppliers and institutional partners. The learning gathered, together with a critical examination of our internal priorities mean no formal large scale Procurement is currently planned.
Contracting authority
National Highways
- Companies House: 09346363
Bridge House, 1 Walnut Tree Close
Guildford
GU1 4LZ
United Kingdom
Email: info@nationalhighways.co.uk
Website: https://nationalhighways.co.uk
Region: UKJ25 - West Surrey
Organisation type: Public authority - central government