Anglian Water picks four to deliver IOS and IMDS programmes

Barhale, Clancy Docwra, Kier MG and Morrison Utility Services are the latest contractors appointed by Anglian Water to its AMP6 capital delivery programme. The The four companies will deliver contracts worth around £450M during AMP6.

One of the deals entails delivering Anglian's entire domestic and business metering programme

Clancy Docwra and Kier MG will deliver Anglian’s Integrated Metering and Developer Services (IMDS) programme in a deal worth around £200M. Working with Anglian Water employees, the companies will deliver the entire domestic and business metering programme including water efficiency audits. They will also lay new mains and divert existing pipework, and install new water connections to housing developments.

Barhale, Kier MG and Morrison US will deliver the Integrated Operational Solutions (IOS) programme, worth in the region of £250M. They will deliver the majority of small replacement and refurbishment projects, such as work on filter screens at Anglian's existing operational sites and treatment works. The work also includes programmes of small scale new installations, such as pumping stations and control kiosks across the entire Anglian Water 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 IMDS and IOS contractors have committed to support the delivery of the ten outcomes Anglian Water has promised as part of its business planning for the next five years. They will work with Anglian Water in a collaborative commercial model, sharing risk and reward collectively within the alliances, only recovering head office costs and earning profit when they 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 £1.5B of investment over 15 years.

Tucker said: “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 the latest two alliances developed by Anglian Water to deliver between £6B and £9B 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 in 2015 and are expected to run until 2030, with a review every five years.

This is the first time Anglian Water has put every aspect of its capital investment out to tender at the same time. It expects to announce the final Tier 1 frameworks in the coming months.

In spring, the company confirmed Balfour Beatty, Barhale, Grontmij, MMB (a joint venture of Mott MacDonald and JN Bentley), MWH and Skanska as partners to deliver its Integrated Main Works Capital (IMWC) programme, representing roughly half of the total investment programme. Black and Veatch has also signed as a reserve partner.

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.