Cadent’s construction management organisation (CMO) contracts start in April 2021 and cover the next two regulatory (RIIO-2 and RIIO-3) periods to manage the planning and delivery of each network’s mains replacement programme and related projects.
The performance-related contracts are valued at around £300m over the initial five years, with a second five-year term potentially taking the overall value to £600m.
The contracts have been awarded to the following companies in each network:
- Costain – east of England network
- Morrison Utility Services – north London network
- Network Plus - northwest network
- Sapphire Utility Solutions and Enzen Global Solutions joint venture – west midlands network.
The next stage of the partnerships is to work with each of the CMOs to appoint local delivery partners (LDP) who will carry out the mains replacement work, contracted by Cadent but managed by each of the CMO partners in the networks. These LDP contracts will be awarded in the autumn.
Cadent chief operating officer Howard Forster said: “The use of a construction management organisation contract across our gas mains replacement work is a new and innovative approach for Cadent. We are utilising knowledge and experience from other sectors, regarding this type of strategic partner contract. It is designed to allow these partners to utilise their organisation’s capability and skills to focus on driving customer and safety performance and programme efficiency across Cadent’s major investment programme on a specific network basis.”