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Mon October 26 2020

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Thames Water completes its AMP7 line-up

14 Oct Thames Water has agreed the final, and biggest, framework for design and build construction contractors for its £2.3bn AMP7 capital works programme.

The clean and wastewater projects will include schemes to provide additional resilience to water supplies across London and the Thames Valley.

The initial duration of the framework agreement is five years to match Thames Water’s seventh asset management period (AMP7) from April 2020 to March 2025. There is an option to extend for up to five more years in line with the AMP8 regulatory period to 2030.

If they run the full 10 years, they could see Thames Water award up to £4bn of investment to undertake work on all types of above and below ground assets.

Following the awards of frameworks in two lots earlier this year, five sub-regional lots of contractors have been added.

The selected contractors are:

Lot 3 – Non-Infrastructure: Galliford Try and MWH Treatment (London)

Lot 4 – Non-Infrastructure: Interserve and Mott Macdonald Bentley (Thames Valley)

Lot 5 – Infrastructure: J Murphy and Barhale Ltd (London – North)

Lot 6 – Infrastructure: Morrison Utility Services and Galliford Try (London – South)

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Lot 7 – Infrastructure: Morrison Utility Services and Mott Macdonald Bentley (Thames Valley)

Back in May Thames Water announced the contractors for Lots 1 and 2, covering its whole catchment. These are:

Lot 1 – Non-Infrastructure: Costain, MWH Treatment, Mott MacDonald Bentley, Kier Infrastructure, Glan Agua, Galliford Try, Barhale and Bridges Electrical

Lot 2 – Infrastructure: Kier Infrastructure, Morrison Utility Services, Galliford Try, J Browne Cons, Barhale Ltd and Clancy Docwra

The latest geographical frameworks will run parallel to the Thames-wide frameworks.

John Bentley, Thames Water’s capital delivery director, said: “We’re delighted to have now appointed our partners to plug the final piece of the jigsaw for our AMP7 delivery. We have ambitious plans and are looking forward to working together to outperform expectations. Thames cannot achieve success without our partners being successful and we’re committed to making that happen.”

Galliford Try anticipates that its place on lots 3 and 6 will be jointly worth up to £60m a year to its business.

Last year, Thames Water announced its decision to move away from an alliancing approach and implement an ‘intelligent client’ operating model for AMP7 capital delivery, bringing more activities in-house in asset management, programme management, project management, technical assurance and commercial management.

Among contractors missing out in AMP7 are Skanska and Balfour Beatty, which formed the SMB alliance with MWH Treatment, delivering £1bn-worth of capital projects during AMP6.

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