Southern Water has launched the procurement process for a range of supply chain partners for the delivery of its AMP8 capital programme. The utility has gone out to tender with a major AMP8/9 framework contract for capital strategic delivery partners worth up to an estimated £6.2 billion.

The water company is anticipating that AMP8 will be the largest investment programme it has ever undertaken, given its plans for WINEP and WRMP, and the service it is seeking to deliver for customers.

The overall value of £6,194 million as detailed in the Contract Notice and the Bravo portal comprises:

(a) £3,613 million for the initial 7 year term; and

(b) £2,581 million for the potential extension period(s) (the framework has the potential to be extended by a further 5 years estimated at £516m per year).

Southern Water is looking to secure a range of supply chain partners for the delivery of its AMP8 capital programme which will run from April 2025 to March 2030. The current frameworks used for engineering, design and construction services have been in place for almost 10 years and expire on 31st March 2025.

The new arrangements will offer the option of running for AMP9.

In parallel to the procurement process, Southern Water is working up its plans for PR24 – including working with regulators and stakeholders to confirm the investment that will be available, and the capital delivery projects that will need to be undertaken.

The water company is looking to put a collaborative framework in place for the delivery of strategic programmes, including; strategic planning, outline design and detailed design and build.

The scope of the framework is anticipated to be as follows:

• Services across the company’s geographical region across Sussex, Kent, Hampshire and Isle of Wight.
• Strategic Delivery Partner working across the Asset Lifecycle Process providing strategic planning, design, construction management services and expertise.
• Identify and develop options in accordance with the client’s technical and engineering standards for all aspects of Water, Wastewater and Infrastructure systems.
• Achieve the required asset performance or customer outcomes

The successful suppliers will be expected to identify: 

• low build or no-build solutions.
• sustainable including low carbon, catchment, and nature-based solutions.
• lowest Totex or Best Value solutions across an agreed Tranche or Programme of works.
• how the solution(s) deliver benefit as measured through the Client’s Balanced Scorecard, and at an aggregate catchment or system level.

Southern Water intends to appoint up to 8 contractors on the framework - works they will be expected to provide include:

• strategic planning, design, construction management services and expertise including:
• create, manage and optimise its allocated programmes, including developing programme, tranche and project execution plans
• supporting the client with pre-construction enabling activities.
• undertaking construction enabling activities (e.g. site surveys, site preparation, streetworks management , including communicating with the customer).
• preparing all aspects of work delivery planning, including identification of the most cost-efficient civils, mechanical and electrical, and environmental construction resource to deliver the works, for review and acceptance by the client.
• work with the client to regularly optimise the specification and procurement of the client’s Standard Asset List, including use of centralised or buying club solutions.
• managing and undertaking construction delivery to the time, cost, quality and risk parameters agreed with the client.
• managing and undertaking commissioning and handover according to Client Engineering Standards.

The contract is being tendered in the following Lots:

Lot 1 Capital SDP Non-Infrastructure Water (£1,949,000,000)

Lot 2 Capital SDP Non-Infrastructure Wastewater (£2,772,000,000)

Lot 3 Capital SDP Infrastructure Water & Wastewater (£1,524,000,000)

Southern Water also makes the point that the framework agreements will typically require a significant investment from the supplier to achieve the technical requirements and to manage the inherent risks with the complex requirements. The strategic and complex tranches/programmes of work may cover an extended period of time and would create a complexity of changing a supplier during an AMP period.

Time limit for receipt of tenders or requests to participate is 30 June 2023 – click here to access the tender documentation.