Kier chosen for £1bn Thames Water Infrastructure Alliance contract

Posted: Wednesday 7th January 2015

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.

John Wilkinson, Kier Services executive director, commented: “We are delighted to have been chosen by Thames Water for their new alliance. It’s an excellent opportunity for Kier to leverage a wide range of skills and the strong track record that we have built up in the sector.

“The alliance should provide an innovative and forward-thinking way to deliver comprehensive asset management services; enabling Thames Water to maximise the performance of their network, so we are very much looking forward to starting work with them.”

Thames Water managing director of wholesale water, Bob Collington OBE, said: “KCD and Agility will join the Thames Water family, working alongside us and our other partners in this, and our eight2O alliance, to deliver our AMP6 programme and beyond.

“We strongly believe these two alliances will create aligned goals and objectives throughout the supply chain, standing us in the best possible position to deliver our customer and stakeholder promises.”

Collington said the alliance and eight2O will jointly agree processes for work allocation based on “best customer outcome and cost”. He added: “I am determined to ensure that investment and delivery are customer-focused at all times. By bringing greater innovation to process and techniques, I hope we can build on the past to improve performance further in the future.”

The contract will start in April 2015 following a mobilisation period beginning in January 2015.

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