PA23 UK2 - Preliminary market engagement notice - Compound Refurbishment Works for the British Embassy, Tokyo - Phase 2

Project Background
Following the sale of surplus land within the British Embassy Tokyo compound, FCDO is delivering a multi year phased refurbishment of the retained estate. The programme is designed to modernise the Embassy campus, address life expired infrastructure, improve security, sustainability and accessibility, and support the UK’s diplomatic objectives in Japan.
The overall programme consists of three phases:
• Phase 1 (Under Contract): Refurbishment and fit out of entrance and gatehouses, main office building, repurposed garages and FM suite (Block E), and seismic strengthening to retaining walls.
• Phase 2 (Estimated contract value £15-20 million): Chancery Building extension and refurbishment.
• Phase 3 (Estimated contract value £15-20 million): Ambassador’s Residence refurbishment, multi purpose facilities including plant, storage and parking, and site wide streetscape and landscaping (Block Z).
This PME relates only to Phases 2 and 3.
Scope of Future Phases
Phase 2 – Chancery Building
The anticipated scope includes:
• Extension, remodelling and full refurbishment of the Chancery Building;
• Replacement of mechanical and electrical systems;
• Building fabric upgrades and internal fit out;
• Accessibility and sustainability enhancements;
• Associated landscaping works;
• Contractor input to develop designs from RIBA Stage 3 through to RIBA Stage 4 (or Japanese equivalent), prior to construction.
Phase 3 – Estate and Residential Works
The anticipated scope includes:
• Refurbishment of the Ambassador’s Residence;
• Construction or refurbishment of a multi purpose building accommodating storage, plant and parking facilities;
• Site wide streetscape improvements and landscaping;
• Continued operation within a live diplomatic estate.
Phasing and Packaging Considerations
The Authority is currently considering a number of potential approaches to the packaging and sequencing of Phases 2 and 3. As part of this Preliminary Market Engagement, FCDO is seeking market feedback to understand supplier appetite, capacity and preferences in relation to these options, and the relative advantages and risks associated with each.
The options under consideration include, but are not limited to, the following
Option A – Tender Phase 2 and Phase 3 Separately
Phase 2 would be procured through a standalone competitive exercise, with an anticipated contract value in the region of £15–20 million
Phase 3 would be procured at a later date following the delivery of Phase 2 – This means there will be two separate buying processes, done at different times.
Option A - Anticipated Contract Award dates:
Phase 1: November 2028
Phase 2 December 2030
Option B – Tender Both Phases Together (Staged Approach)
The Authority is also exploring a staged delivery approach, whereby a single procurement exercise is undertaken covering both phases, this option inculdes:
Phase 2 of the project, with all associated deliverables and timelines and would require a tenderer to provide a fixed price.
Phase 3 Tenderers will also be asked to provide a tender including pricing for Phase 3 on the current scope – this scope may be subject to change as we near delivery and tenderers may be asked to reprice using rates provided at tender stage. Phase 3 is not guaranteed and may not be awarded.
This model may offer early commitment to a delivery partner while retaining flexibility over later phases. The Authority welcomes market views on the feasibility of this approach, including design maturity expectations, risk allocation, and commercial mechanisms to manage change, repricing and uncertainty.
Option B - Anticipated Contract Award Dates
Phase 2: November 2028 inc Phase 3 evaluation
Phase 3: December 2030
Commercial and Contractual Considerations
Based on earlier phases, the Authority currently anticipates:
• Use of an NEC4 Engineering and Construction Contract, potentially Option A (fixed price with activity schedule), subject to final strategy;
• Potential use of Early Contractor Involvement (ECI) to support design development, risk management and programming Delivery in Japan, requiring compliance with Japanese building regulations, planning processes and professional licensing;
• Strong interface management with ongoing embassy operations and security stakeholders.
The Authority welcomes market feedback on alternative contracting strategies, packaging options, risk allocation and delivery models suitable for Phases 2 and 3.