Water Utilities Construction

With the construction industry slowly beginning to emerge from the worst of the COVID-19 lockdown, construction of water utilities work is coming through the pipelines.

The latest round of water utilities spending, which is known as AMP7, and is running until 2025, is beginning to kick in, with Amey securing a £100 million extension on the contractors existing reactive and maintenance agreement with Yorkshire Council.

Operation Contract Manger at Yorkshire Water, Nicola Shirley said: “We have some challenging performance targets for AMP7 and, working with Amey, we will positively contribute to the Performance Commitments we have for flooding and pollution.”

With spending from AMP7 to accelerate from Spring 2020 onward, Yorkshire Water have a swathe of contractors who have signed on for it £1 billion AMP7 complex and minor MEICA frameworks, which is set to run until 2025.

Mark Baker is Head of Programme Delivery at the utility, he said: “The MEICA Framework Partners will join our civils partners and Yorkshire Water in developing our enterprise delivery model.”

Projects that are in this procurement pipeline also include a £4 million, 12 sq m reservoir at Boston Park, with research from Glenigan showing that contactor MMB are expected to start their work later this year.

There are many other new projects which are benefitting from new work thanks to the AMP7 programme, including, Skanska which have renewed their asset management contract with Welsh Water. They will spend £2.3 billon improving tis network of 26,500-km of water mains, 30,000-km of sewers and 838 sewage treatment works, along with improving 66 impounding reservoirs.

Skanska’s new five-year dal is valued a £193 million and will start this Spring (2020), with research showing that Welsh Water is amongst the industry’s top 100 clients in the 12 months to Q in 2020. The utility will also be procuring other works, including a £1 million deal to repair Llyn Brianne Dam in Dyfed, with research showing this job is currently in the tender stage.

Thames Water who are traditionally one of the biggest spending water utilities is procuring a capital projects framework for its £2.3 billion AMP7 spending commitments. Other individual Thames Water projects which are coming up include the £80 million plan to relocate sewage treatment works in Guilford, with applications for tender now having been received, and with research from Glenigan showing that a start date is due towards the later half of this year.

For Scottish Water’s £450 million infrastructure delivery framework, tenders have already been returned. Work is due to start on this in 2021, and a further boost in spending is expected to defy any weakening in the industry.

Glenigan’s economics director Allan Wilén said: “The 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 £50 billion planned up to 2025.”

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