'Alliance' delivery model unveiled for future investment

Posted: Monday 4th February 2013

Thames Water will use an alliance model to deliver a significant proportion of its 2015-to-2020 programme of essential upgrades to water pipes, treatment facilities, and sewers across London and the Thames Valley, it was announced recently.

Under the new approach the organisations in Thames Water’s AMP6 (asset management period number six) alliance will get involved early in the process of helping shape the company’s business plan for the next five-year period, which will be submitted to the regulator Ofwat ahead of the 2014 industry review of prices.

The company unveiled its plans to "completely transform" the way it delivers its capital investment at a 'Preparing for AMP6' supplier event, at the Madjeski Stadium in Reading.

Lawrence Gosden, capital delivery director for Thames Water, said: "The aim of today’s event was to engage our supply chain early, getting everybody up to speed with our plans for AMP6 and beyond.

"We need to make significant investment in our water and wastewater networks over the next 10 years, and in order to do that efficiently and sustainably we need to completely transform the way we deliver our investment programmes.

"Following extensive feedback from and discussion with many members of the supply chain and industry bodies, we believe that moving to an alliance model is what will enable us to work together in a way that delivers the very best value for our customers over the long term.

"By assembling the best team we will give ourselves the best chance of success, so our focus is on business alignment, quality and value."

Under Thames Water’s new delivery model, potential suppliers will have the opportunity to gain up to 12 years of work if they align effectively with the alliance’s shared values and business objectives.

The working principles of the company’s AMP6 alliance represent a big change from past delivery models. They include:

The company started its procurement process earlier this month, publishing a qualification system notice in the supplement to the Official Journal of the European Union.

The deadline for suppliers expressing an interest is December 21. Thames Water plans to announce ‘early contractor engagement’ (ECI) alliance agreements in the spring of 2013.

In the next five-year regulatory period, 2015 to 2020, it is expected that a significant proportion of Thames Water's investment programme will be carried out by its AMP6 alliance team.

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