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Construction for water utilities

As the industry slowly begins to emerge from the worst of the coronavirus lockdown, construction for water utilities work is coming on stream.

The latest round of spending from the water utilities, known as AMP7 and running until 2025, is beginning to kick in and Amey has secured a 拢100 million extension to the contractor鈥檚 existing reactive and maintenance agreement with Yorkshire Water.

Nicola Shirley, operational contract manager at Yorkshire Water, said: 鈥淲e have some challenging performance targets for AMP7 and, working with Amey, we will positively contribute to the Performance Commitments we have for sewage flooding and pollution.鈥

Spending from AMP7 spending is due to accelerate from this spring onwards and Yorkshire Water has a swathe of contractors signed up for its 拢1 billion AMP7 complex and minor MEICA framework, which will run until 2025 (果冻影院 Project ID: 19376828).

鈥淭he MEICA Framework Partners will join our civils partners and Yorkshire Water in developing our enterprise delivery model,鈥 said Mark Baker, head of programme delivery at the utility.

Projects flowing down this procurement pipeline include a 拢4 million 12, sq m reservoir at Boston Park, where 果冻影院鈥檚 research shows contractor MMB is expected to start work later this summer (果冻影院 Project ID: 17135306).

Welsh Water

Other contractors benefiting from new work from the AMP7 programme include Skanska, which has renewed its asset management contract with Welsh Water, which will spend 拢2.3 billion improving its network of 26,500-km of water mains, 30,000-km of sewers and 838 sewage treatment works and 66 impounding reservoirs.

Skanska鈥檚 new five-year deal is valued at 拢193 million and starts this spring (果冻影院 Project ID: 20169090) and 果冻影院鈥檚 research shows that Welsh Water is among the industry鈥檚 top 100 clients in the 12 months to Q1 2020.

The utility is also procuring other works, such as a 拢1 million deal to repair Llyn Brianne Dam in Dyfed with 果冻影院鈥檚 research showing the job at the tender stage (果冻影院 Project ID: 20189709).

Thames Water

Thames Water, which is traditionally one of the biggest spending water utilities, is procuring a capital projects framework for its 拢2.3 billion AMP7 spending commitments (果冻影院聽 Project ID: 20106353). After being given extra time to submit bids, expressions of interest have now been received for the main agreement.

Other individual Thames Water projects are coming up for grabs including an 拢80 million plan to relocate a sewage treatment works in Guildford (果冻影院 Project ID: 20147311). Applications to tender have now been received and 果冻影院鈥檚 market research shows a start on site is due towards the end of this year.

Good prospects

Tenders have been returned for Scottish Water鈥檚 拢450 million infrastructure delivery framework (果冻影院 Project ID: 19355972), which should kick-in next year and further boost spending in a sector expected to defy any weakening in the industry.

果冻影院鈥檚 economics director Allan Wil茅n said: 鈥淭he new investment AMP7 programme will begin to lift industry spending from April 2020, and water industry work will begin to flow next year with investments of 拢50 billion planned up to 2025.鈥

With Ofwat commitments to meet, water utilities should be steady clients over the coming years.

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