Anglian Water names AMP6 framework partners
Anglian Water has announced the final set of framework partners who will deliver around £200 million of work across its region during AMP6.
Five companies are expected to form the firm’s Integrated Maintenance and Repair (IMR) alliance, one of four alliances that Anglian Water has now established. The IMR alliance is divided into two specialist areas, covering water and water recycling projects. Partners will be encouraged to contribute ideas and experience across both areas of work.
Clancy Docwra and Kier MG have today (14 November) signed contracts to carry out the firm’s water infrastructure maintenance work. This will include carrying out around 40,000 jobs a year such as repairing burst mains, finding and fixing leaks and replacing lead pipes. The contract is expected to be worth around £140 million between 2015 and 2020.
Earlier this week (12 November) the company also announced the four preferred bidders for its water recycling maintenance work, which includes fixing collapsed sewers and replacing damaged manholes. This section of work is expected to be worth over £60 million in the same period.
The four bidders - Clancy Docwra, Claret Civil Engineering, Danaher & Walsh and Public Sewer Services – will spend the next three months working on a joint business plan before signing contracts to form the final part of the IMR alliance, completing around 7,500 water recycling jobs every year.
Jason Tucker, Head of Capital Delivery and Supply Chain Management for Anglian Water, said: “Confirming our partners and preferred bidders for the final two alliances brings our tier one AMP6 procurement process near to its conclusion.
“Putting our entire tier one workload out to tender at one time has meant a lot of work, but it’s also proved to be a great opportunity to challenge how we do business, ultimately for the benefit of our customers. We’re confident the carefully selected partners are the best suited to meet our targets and the expectations of our customers, to drive innovation and efficiency throughout our processes, and to work collaboratively over the next 15 years.”
All the partners for the IMR contracts have committed to support the delivery of the ten outcomes Anglian Water has promised as part of its business plan for the next five years. They will work with Anglian Water in a collaborative commercial model, sharing risk and reward collectively within the alliance, working to outperform Anglian Water’s business plan.
To maximise collaborative working and efficiency, contracts may run for 15 years, with a review after each five-year AMP period. This is one of the longest collaborations in the industry, and means these contracts could deliver around £600 million of investment over 15 years.
Tucker 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.
“This announcement is the final step in confirming all of our tier one framework partners who will work with us to deliver between £6 and £9 billion of investment over 15 years.
“Four alliances will collectively deliver every kind of work for Anglian Water, ranging from building large new water treatment works to repairing small leaks and connecting new properties to the network. The supply chain contracts begin next year and are expected to run until 2030, with a review every five years. We now look forward to running additional procurement processes to appoint our many tier two partners to service our four alliances.”
Already this year, the company has confirmed its partners for its Integrated Main Works Capital (IMWC) which will retain the ‘@one Alliance’ brand, Integrated Metering and Developer Services (IMDS) and Integrated Operational Solutions (IOS) alliances, representing almost £2 billion of the company’s investment programme during AMP6.
To ensure the selection process focussed on the behaviour of bidder’s staff, Anglian Water appointed JCP – a collaborative working specialist – to help develop and implement its AMP6 procurement process. JCP were able to bring best practice in developing alliances, establishing and implementing robust and effective collaboration.
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.”
The partner organisations already signed up to Anglian Water’s alliances are:
- IMWC (approximately a £1.3 billion contract): Balfour Beatty, Barhale, Grontmij, MMB (a joint venture of Mott MacDonald and JN Bentley), MWH and Skanska. This alliance will retain the @one Alliance brand. Black and Veatch has also signed as a reserve partner.
- IMDS (approximately £250 million contract): Clancy Docwra and Kier MG
- IOS (approximately £200 million contract): Barhale, Kier MG and Morrison Utility Services
The preferred bidders for the IMR Water Recycling framework will now enter a three month business planning period and are expected to formally sign contracts in March 2015.
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