Kier, in a joint venture with Clancy Docwra, has been named preferred bidder for Thames Water’s major new £1bn alliance.
The alliance, which has chosen two joint venture teams, will begin in April 2015 and will run for up to 15 years (2+3+5+5) with an estimated value to the joint venture, KCD (Kier Clancy Docwra), of £500m over the next five years.
The contract includes the option to extend the arrangements to the AMP7 and AMP8 business plans, while KCD may also be required to deliver elements of the current AMP5 programme. The second joint venture team chosen was Agility (J. Murphy & Sons and Morrison Utility Services).
The scope of the alliance includes the full range of services, including clean water network repair, rehabilitation and maintenance and leak detection, along with constructing new water mains. It will also consist of managing the logistics and scheduling of programmes, as well as developing customer and stakeholder services.
The Kier Clancy Docwra (KCD) bid focused on leveraging the two teams’ combined expertise, having already worked together on substantial Anglian Water contracts, including the new planned programme for AMP6. The bid also demonstrated the ability to offer a breadth of services and best practice, alignment to strategic aims and having multi-disciplinary design and delivery capability, which were all key requirements for Thames Water.
The contract win has furthered strengthened Kier’s position in the UK water sector – in the last 12 months the firm has secured some substantial new contract awards, including awards under the AMP6 bidding cycle, totalling £374m.
Recent notable contract wins for Kier include:
- Three five-year AMP6 contract awards for Anglian Water with a total value of £250m
- A new contract worth up to £24m with Bournemouth Water
- A £20m pa network maintenance services programme with Bristol Water.
In August this year Kier also secured the £25m pa Canal & River Trust National Engineering & Construction Contract (NECC) for England and Wales preserving 2,200 miles of canals and waterways in England Wales.
A joint venture between Kier, Van Oord, Mackley and Royal Haskoning DHV, Team Van Oord, is separately working to construct a major flood reduction scheme for the Environment Agency to protect more than 1,400 properties in Kent.
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