Northumbrian Water has gone out to tender with a major contract for its AMP8/9 Capital Delivery Construction and Engineering worth up to an estimated £8 billion.
Launching the tender, the water company said delivering its AMP8 programme, and beyond, will require a step change in how it collaborates, manages risk and co-ordinates its capital investment.
Northumbrian Water’s ambitious transformation programme has already started with the award of framework agreements for professional services contracts. These lay the foundations for the utility’s new supply chain landscape or 'Living Water Ecosystem'.
Northumbrian Water is now seeking applicants to join the ecosystem as either Enterprise Design & Construction Partners or Wider Ecosystem Partners.
The company’s new delivery model contains two primary delivery routes which differentiate its approach dependent on the size, complexity and technical input required.
Short Cycle Work:
NWL's Integrated Delivery Services (IDS) team delivers lean and agile short cycle capital investment works on its water and wastewater assets, as well as delivering infrastructure services for developer customers.
Long Cycle Work:
The majority of NWL's complex long cycle programmes will be delivered by the Living Water Enterprise (LWE) - a fully integrated, highly collaborative delivery vehicle which works seamlessly to achieve the best overall business outcomes.
The LWE will:
• Think and act as a single entity, focused on outcomes and mutual goals;
• Incentivise performance to make sure collective success is the priority, not financial returns for any individual party;
• Embed TOTEX principles across the LWE from the outset;
• Place Delivery Optimisation as one of its key priorities and will consider this at a programme level to so that the water company operates a best athlete principle rather than rigid supplier boundaries.
To support the delivery of both short and long-cycle activity, NWL are looking to appoint a number of suppliers to the following lots:
Living Water Enterprise Lots FA08-01
The Client is looking to appoint Enterprise design & construct (D&C) Contractors in the Northumbrian Water operating area to deliver infrastructure projects across its capital investment programme.
Lot A - Infrastructure (North East)
Lot B - Treatment (North East)
Lot C - Treatment (Essex & Suffolk)
Wider Ecosystem Lots FA08-02
Lot A - Infrastructure Civil Engineering (North East)
Sub lot 1 - £0-£2.5m
Sub lot 2 - £0-£5m
Lot B - Treatment and Civils (North East)
Sub lot 1 - £0-£2.5m
Sub lot 2 - £0-£5m
Lot C - Treatment and Civils (Essex & Suffolk)
Sub lot 1 - £0-£2.5m
Sub lot 2 - £0-£5m
Lot D - Demolition and Associated Services (North East)
Lot E - Demolition and Associated Services (Essex & Suffolk)
Lot F - Multi-Disciplinary Civil Engineering - Non-Water Experience (North East)
Lot G - Multi-Disciplinary Civil Engineering - Non-Water Experience (Essex & Suffolk)
Lot H - Civil and Environmental Engineering (North East and Essex & Suffolk)
Living Water Ecosystem Principles
To deal with the scale of the upcoming programme, Northumbrian Water says its delivery model is designed to be as flexible as possible - suppliers appointed to one lot may be invited to support a wider aspect of the programme. The utility also recognises the need to create new capacity in the water industry and support market entrants - with this in mind Northumbrian has also created a specific lot for suppliers without pre-existing water industry experience.
Estimated total value is £8 billion. The water company is looking to put framework contracts in place of different lengths – initial contract terms range from 6 to 8 years with further extension options available making a maximum of 12 years across the entirety of the frameworks.
Applicable across all lots, Northumbrian Water said its intention is to award twelve year framework agreements for the provision of the works and services. The duration is in recognition of the significant investment required from both the client and contractors to build and maintain a high performing supply chain ecosystem to deliver a programme of this size and scale.
The water company said it is anticipated that investment will be required within its operating areas to bring the necessary skills, resources, systems and infrastructure and by giving a long term commitment to the supply chain we will be best placed to attract the best supply partners.
Time limit for receipt of tenders or requests to participate is 4 August 2023 – click here to access the tender documentation.
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