14 | Leaders 2013
Laing O’Rourke Collaboration will be key
Laing O’Rourke tops the Return on Capital top 10. The company gives an insight into the remainder of AMP5, and says contractors must change
LAING O’ROURKE says it has “performed positively from both a financial and work winning perspective in the water sector in the last year”, working on large projects such as the Beckton and Crossness sewage treatment works.
Martin Bradbury, Laing O’Rourke’s utilities sec- tor leader, says: “We would expect our perfor- mance in the water sector to remain strong over the next 12 months. We have an excellent track record, an innovative approach – particularly with our Design for Manufacture and Assembly (DfMA) and digital engineering with a reputa- tion for partnering, looking to bring down costs for our clients.
“For example, as part of our work at Beckton and Crossness (pictured) we manufactured concrete panels of around eight by four metres at our Explore Industrial Park (EIP) in Not- tinghamshire, which were then assembled on site, as well as six aeration tanks. This was the first time that DfMA had been used for building aeration tanks – certainly in Europe – and it means that the projects are likely to be finished later this year, months ahead of schedule and on budget.
“Going forward we will continue to focus on securing AMP6 frameworks while successfully and safely delivering current work.”
Delivering assets
As with other contractors, Bradbury expects activity levels to tail off as the end of AMP5 approaches. He explains: “We would naturally expect activity around AMP5 to drop off slightly as it runs down in the final two years. As the sector moves to Totex in AMP6 there will be a greater emphasis placed on delivering assets that impact positively on the whole life cost of the project and even greater collaboration with clients to understand their key drivers. “We would expect that there will be a de- crease in the number of high value projects, but capital maintenance programmes will become more significant. “We wouldn’t comment on specific financials but with our expertise and track record in the area we would be seeking an AMP6 framework position and we will continue to engage with our water sector clients.”
The trend for alliances is likely to continue
Return on Capital % Laing O’Rourke Costain Dawnus MWH
Interserve Imtech Dyer Trant
FM Conway Clancy Docwra A supplement to WET News and WWT
and Bradbury sees this as the likely way that AMP6 will be procured for many water sector clients. “Thames Water has followed this route and others have signalled their intention to do so.” he says.
Moving forward, in addition to a shift to smaller value projects with alliances being the preferred method of delivery Bradbury says other key changes include the Water Framework Directive from the EU, which aims to improve the ecological and chemical status of inland waters by 2015 will also have an impact. “Utilities can’t simply maintain the waters they own – they have to leave them much cleaner.”
148.7 82.1 81.8 69.5 38.0 36.7 35.5 26.4 25.5 25.5
Also, Bradbury says the economic regulations that water companies are subjected to is becom- ing more rigorous. Contractors cannot simply carry on as they were. There will be a focus on collaboration with the contractors helping the client to reduce the price.”
Extreme drought
Laing O’Rourke designed and constructed Aus- tralia’s first potable water recycling plant. The Luggage Point Advanced Water Treatment plant in Brisbane, Australia produces 70 million litres of purified recycled water a day – a first for Aus- tralia – and thanks to advanced DfMA processes
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