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Anglian Water names £450M AMP6 framework partners

Four partners to deliver Anglian Water AMP6 frameworks

Anglian Water has announced the four firms who will provide a partnership to deliver contracts worth around £450M during AMP6, which runs from 2015 to 2020. 

Carhale, Clancy Docwra, Kier MG and Morrison Utility Services signed contracts with the firm yesterday. 

The Integrated Metering and Developer Services (IMDS) programme will be delivered by Clancy Docwra and Kier MG in a partnership worth around £200M in AMP6. Working with Anglian Water employees these carefully selected partners will deliver the entire domestic and business metering programme which will include water efficiency audits, helping customers save water, and money. The companies will also lay new mains and divert existing pipework, and install connections to new housing developments. 

Barhale, Kier MG and Morrison Utility Services will deliver the Integrated Operational Solutions (IOS) programme, worth in the region of £250M in AMP6. This will involve delivery of the majority of small replacement and refurbishments, such as work on filter screens at existing operational sites and treatment works, and programmes of small scale new installations, including pumping stations and control kiosks across the region. 

Jason Tucker, Head of Capital Delivery and Supply Chain Management for Anglian Water, said: “Confirming our partners for these two vitally important alliances is another significant step forward in our AMP6 procurement process.

“We are determined to deliver maximum efficiency and satisfaction for our customers by working closely with these carefully selected organisations to drive innovation.”

The contractors have committed to support the delivery of the ten outcomes Anglian Water has promised is part of its business planning. They will work with the utilities company in a collaborative commercial model, sharing risk and reward collectively within the alliances, only recovering head office costs and earn profit when they outperform the business plan. 

Contracts may run for up to 15 years to maximise collaborative working and efficiency, and a review will take place after each five-year AMP period. This is one of the industry’s longest collaborations and means the contracts could deliver around £1.5Bn of investment over 15 years. 

Jason continued: “Our procurement process for AMP6 has been developed to ensure we select organisations that share our vision and are committed to the same outcomes as our AMP6 business plan, which was created collaboratively with thousands of our customers and stakeholders.

These are Anglian Water’s latest two alliances to deliver between £6 and £9Bn investment of 15 years. Four alliances will collectively deliver every kind of work ranging from building large water treatment works to repairing small leaks and connecting properties to the network. The supply chain contracts will run from 2015 to 2030, with five year reviews. 

This is the first time the utilities company has put every capital investment aspect out to tender at the same time.

The company confirmed Balfour Beatty, Barhale, Grontmij, MMB (a joint venture of Mott MacDonald and JN Bentley), MWH and Skanska as partners in spring. Those contractors will deliver its Integrated Main Works Capital (IMWC) programme which represents only half of the investment programme total. Black and Veatch signed as reserve partners. The final tier 1 framework announcements are expected in the coming months. 

To ensure selection focused on the behaviour of bidder’s staff, Anglian Water appointed JCP – a collaborative working specialist – to help deliver and implement the AMP6 procurement process.

Simon Vaughan, Director at JCP said that adopting a collaborative approach is the way forward for companies working on long-term, complex, high cost projects. “For over 20 years, we have developed high performance teams to produce outstanding results. Companies who have adopted this approach have dramatically and consistently reduced time and cost on capital projects and I am delighted to work with Anglian Water which has embraced this approach.”