Alliances 2014 | 23 No change in H5O structure for AMP6
Partners: Hyder Consulting; Pell Frischmann; Interserve Project Services; Balfour Beatty; South West Water’s engineering staff Customer: South West Water Contract: Delivering South West Water’s K5 capital engineering programme Term: 5yr contract, extended by further 2yr to 2017
SOUTH WEST Water (SWW) has extended its Tier 1 Alliance arrangements by a further two years until 2016-17, ensuring it continues to deliver the regulatory contract meeting the efficiency targets set by Ofwat and ensuring that it is best placed to effectively manage the transition between AMP5 and AMP6.
SWW’s Alliance structure will remain the same as AMP5. Its Strategic Client team is responsible for setting the project scopes and commercial targets that will be delivered by H5O, which comprises SWW’s main Tier 1 partners, South West Water staff and a significant supporting supply chain. The company said one of the aspects that is critical to its alliance, and which differs slightly from others, is that it has a mixed economy arrangement where, alongside our construction partners, it has a fully integrated relationship with small and medium enterprise organisations as Tier
2 suppliers. Many of these are regional-based suppliers. It is all based upon the principle of allocating work to the best organisation and the best person for that job, which allows SWW to pick the “best of the best” in terms of delivering its projects.
“We’ve got to make sure that we continue to do that, not only from an engineering and delivery perspective but also from the wider point viewpoint of South West Water as a major employer in the region, both directly and indirectly,” it said.
This approach enables SWW to tap into the skills and expertise of the most innovative and forward-thinking people in the sector that is vital as around 50% of its programme is delivered by local Tier 2 suppliers rather than the Alliance construction partners. SWW has recently extended the membership of the company’s K5 Alliance Board to include representation from the Tier 2 contractors, recognising the importance of this element of the supply chain to the future success of its capital delivery.
Still loads more to do, says KMI
Partners: Kier Infrastructure and Overseas; J Murphy & Sons; Interserve Construction; Mouchel Customer: United Utilities Contract: Delivering the capital programme primarily in UU’s Northern region Term: Yr4 of 5yr contract
KMI PLUS, the consortium comprising Kier Infrastructure and Overseas; J Murphy & Sons; Interserve Construction; Mouchel, achieved 98% of its key performance indicators (KPIs) for year three of AMP5. The KPIs include spend, milestones, outputs and innovations.
Projects that KMI Plus expects to work on for United Utilities (UU) in the next year are • Leigh WwTW (sludge) • Crewe WwTW (sludge) • Burnley WwTW (sludge) • Chipping WwTW • Rochdale WwTW • Anchorsholme • Wyre UID
The £12M Lostock WTW project is one of the schemes completed by KMI this year. The project achieved Water into Supply in June 2013 less than 12 months after work started on site.
The alliance said there is still a substantial proportion of the AMP5 programme to be delivered and activity levels will remain high into the final year.
However, KMI Plus as a joint venture will not be
The £12M Lostock WTW project achieved Water into Supply in June 2013
bidding for AMP6 work, so will disband at the close of the AMP5 contract. Murphy and Interserve are bidding together for UU AMP6 work, while Kier Construction has joined with Veolia to bid separately.
A supplement to WET News
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