WET News

May 2014

Water and Effluent Treatment Magazine

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WET NEWS WATER AND EFFLUENT TREATMENT NEWS News+ Thames Tideway Tunnel fi nal works package tendered, p4; the Welsh government's strategy for water, p6 Onsite: Project Management Dee Valley Water rebuilds Llwyn Onn WTW, p9-11 3D modelling: Pioneering better supply chain partnering, p12 Insight: Tanks & storage Are one- piece tanks the answer to preventing contamination in cold water storage? p23 Foresight: Have your say on the type of projects that will trend in AMP6, and how o‹ site manufacturing will a‹ ect onsite skills, p32 "We are making excellent pro- gress with the tender pro- cess" Mike Gerrard, p4 "This is the only way we will be able to address the challenges facing our water resources..." Alun Davies, p6 Water minister Dan Rogerson reveals the water companies planned transition investment for 2014-15 B alfour Beatty, Barhale, Grontmij, Mott MacDon- ald and JN Bentley joint venture MMB, MWH and Skans- ka are the six companies that will deliver Anglian Water's £1.3B capital delivery pro- gramme during. The contracts are for 15 years, with a review a‡ er each ˆ ve-year AMP cycle, to maximise collabo- rative working and e‹ ciency. The six companies form Anglian Water's new Integrated Main Works Capital Alliance (IMWC), which will deliver the type of work previously under- taken by both the @one Alliance and Special Projects team. The IMWC is the ˆ rst of four delivery vehicles that will focus on the large scale and complex projects. The remaining three will follow the same procure- ment process, and are due to be completed throughout 2014. To drive e‹ ciency, IMWC contractors will commit to Anglian Water's key outcomes, and will work on a total outper- formance basis; only recovering head o‹ ce costs and earning proˆ t when they outperform business plan targets. The partners have also signed A round £440M-worth of work is to be brought for- ward by the water compa- nies to help lessen the impact of the rollercoaster-like peaks and troughs of investment in the in- dustry, water minister Dan Rog- erson has revealed. The move has been welcomed by the Cycli- cality Working Group, which has been working with all parts of the sector to eradicate the nega- tive side of the ˆ ve-yearly cycles. Answering a written question in the House of Commons, Rog- erson said water companies have stated in their business plans "that they are bringing forward around £440M of invest- ment into 2014-15 to smooth the investment proˆ le". He added that the investment will be the delivery of service outcomes to customers, support the supply chain and enable e‹ cient delivery. Ofwat has given water com- panies the opportunity to include transition investment in their business plans for S kanska has announced plans to create around 1,500 jobs in the UK over the next two to three years. The jobs will be required to complete major water, rail, building and roads contracts that it won, said the construction company. The company said it is "look- ing forward to a period of planned growth and expan- sion", which will be fuelled by a focus on construction and infra- structure contracts. This includes commercial building in London and projects for health and pharmaceutical clients, as well as across the road, rail, util- ities and energy sectors. Mike Putnam, president and CEO of Skanska UK, explained: "With more focus on infrastruc- ture investment, we have seen our visible pipeline of new work growing strongly during the last nine months, giving us increased conˆ dence about the future. "Having the right people with the right skills in the right num- bers is therefore a priority for us. We are accelerating our recruit- ment activity signiˆ cantly across all our operations, to ˆ ll roles at all levels of the company and in many parts of the UK." Anglian picks six for AMP6 up to a jointly devel- oped beneˆ ts plan for the AMP including a new approach to Industrialised Construction and provision for migrating to totex incentives. Jason Tucker, head of Capital Delivery and Supply Chain Man- agement, said: "Our procure- ment process for AMP6 has been developed to ensure we select partners who share our vision and are committed to the same outcomes as our AMP6 business plan. We're looking forward to working together with these partners to begin delivering what will exceed £3B of invest- ment over the next three AMP periods." Water rms plan £440M pre-AMP6 spend REALITY CHECK The – ve-yearly cycles have created peaks and troughs of workload in the industry The regulated periods have resulted in up to 40,000 job losses In the past, Ofwat has attempted to introduce a scheme similar to the transitional investment period The AMP cycles have created uncertainty and ine˜ ciency for contractors Skanska plans major recruit 2015-2020. This has enabled them to bring forward invest- ment into 2014 without su¥ ering penalties within the Capital Incentive Scheme, helping to mitigate the traditional slump as the industry moves from one ˆ ve-yearly cycle to the next. Since 2013 the cross-industry cyclicality group has worked with Ofwat and HM Treasury to implement the recommenda- tions of the Smoothing MAY 2014 Volume 20 • Issue 05 IPS Flow Systems, Seaham, Co Durham, SR7 0PT Tel: 0191 521 3111 info@ipsflowsystems.com www.ipsflowsystems.com Netvitc ® Clamp System Netvitc is a unique, patented, system that is quick and simple to install using bolted clamp couplings. The clamps can easily be demounted, using the two integral bolts, so that piping can be repositioned or reused - ideal for skid units or temporary installations. The clamp is manufactured from reinforced polypropylene, and with fittings made from PVCu the system is pressure rated at 10 bar at 20ºC. For further details on the Netvitc ® Clamp System, or for a copy of our latest product handbook, please contact our sales team. Investment Cycles in the Water Sector report looking at the root causes of cyclicality in the water sector. The group promoted the transition investment approach in its responses to Ofwat's con- sultation last year on business planning. Commenting on the transi- tion spend, the group's chair- man, Richard Coackley, wel- comed the news and said: "At a time when we are looking to deliver outstanding water infra- structure while reducing the costs to the consumer, we must take every opportunity to tackle waste in the sector. "We are extremely pleased that Ofwat agreed to introduce the transition investment pro- gramme, and we are over- whelmed by the level to which it has been taken up. "It will also ensure that the industry is able to get o¥ to a ¦ y- ing start in 2015, building upon work that we have been able to bring forward through this programme." "Our procurement process for AMP6 has been developed to ensure we select partners who share our vision" Jason Tucker, head of Capital Delivery and Supply Chain Management

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