Alliances 2014 | 5
Collaboration enables the companies to tap into the skills and expertise of the most
innovative and forward-thinking people in the sector
delivery vehicle a chance to demonstrate the increased outcomes-focus in the solutions it develops. One desired outcome relates to ‘investing for tomorrow’, demonstrating Anglian’s commitment to a whole life cost and Totex model. The main works alliance is one of four delivery vehicles being established to deliver different types of Anglian’s capital work in AMP6. The company is looking to establish an integrated supply chain to service the four teams, and this should lead to more collaboration and integration in Tier 2 and 3 organisations as they gear up to provide this broader, more joined-up service. South West Water’s (SWW) Tier 1 Alliance arrangements have been extended for a further two years until 2016- 17. Not only will this help the company meet efficiency targets set by regulator Ofwat as well as manage effectively the transition to AMP6. One aspect that is critical to SWW’s H5O alliance is that it has a mixed economy arrangement where, alongside
the 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. The company said it is all
“If tradition is anything to go by, it would be expected that AMP5 starts to wind down as the industry moves towards AMP6.”
based upon the principle of allocating work to the best organisation and the best person for that job, which really allows it 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 says.
This approach enables SWW to tap into the skills and expertise of the most innovative and forward- thinking people in the sector, which is vital as around half of its programme is delivered by local Tier 2 suppliers rather than its alliance construction partners.
Common interest Yorkshire Water is another that has its delivery partners in place already for AMP6. ETM, the AECOM and Galliford Try joint venture, is one of these having been reappointed as one of Yorkshire Water’s eight delivery partners.
The joint venture says there has been active engagement between all the delivery partners and Yorkshire Water to determine the best way to manage “the lull” moving towards AMP6.
A potential option is to pull forward any initial investigation and design work.
Collaboration is a key component between the water company and its delivery partners, says ETM, and
several initiatives are being put in place to make this achievable.
These include the Combined AMP Performance Plan, a collaborative plan that will be produced per framework stream instead of individual plans per delivery partner. Another initiative includes the shared pain gain mechanism, which sees all partners ensuring a culture of aligned common interest.
Of course, when AMP5 closes it will inevitably mean the end for some existing alliances. KMI will be one of these as the partners tender separately for AMP6. KMI Plus as a joint venture will not be bidding for AMP6 work, so will disband at the close of the AMP5 contract. Murphy and Interserve are bidding together for
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AMP6 work, while Kier Construction has joined with Veolia to bid separately. But there are still 18 months to go before the close of AMP5 and all the alliances, collaborations and joint ventures are reporting busy schedules right up to the end.
A supplement to WET News
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