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Awards 2024

Firms put on alert for £4.5bn Northumbrian Water AMP8 deal

Northumbrian Water is calling up contractors to help shape its procurement plans ahead of launching a £4.5bn AMP8 mega bid race in the Autumn.

The water company, which also operates in the south east in Suffolk and Essex, aims to reshape the way it delivers capital investment.

This will see it shift to an embedded client collaboration model, based on an ‘enterprise’ approach involving shared a vision and values with contractors and joint incentivisation.

The water company wants specifically to speak to design and construct firms with experience of working in similar collaborative delivery models.

This will involve interest in how contractors can deliver value at each handover stage; from needs to outcome delivery, the commercial models and incentives used.

It also wants to explore how contractors deliver on cost/time/quality with low carbon (PAS2080 and creating a PAS2080 supply chain), promoting biodiversity and longterm workforce skill sets.

Northumbrian Water procurement chiefs said the framework lot structure has yet to be formalised and would be informed by market feedback, along with its PR24 plan content.

As such, it also want to talk about suppliers’ capabilities in different services across its operating regions.

Monisha Gower, Assets Director, said: “We want to really challenge ourselves as we look to the future of our capital plan and processes, recognising the need to evolve how we do business to deliver the best possible value for our customers in these challenging times.

“We also see a huge opportunity for greater sustainability and reduced carbon in our asset base by looking at our business through a TOTEX lens.”

In February Northumbrian appointed five long-term consultants partners to map out the delivery programme for the next eight years.

These are new strategic technical partners, Stantec and Jacobs, as well as lead commercial consultants Turner & Townsend, with support from Aqua Consultants and Long O’Donnell Associates.