Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/411323
20 ALLIANCES 2015 ALLIANCES 2015 Alliancing 'ticks all the right boxes' Having decided to put all its capital investment through an alliance model, Anglian Water opted to create four work- related consortia rather than a super alliance. Maureen Gaines finds out why. T he clock is ticking away as the industry gears up for the start of AMP6 next April. Water companies have either sourced or are in the process of sourc- ing their capital delivery programmes early to ensure the smooth transition to AMP6, and Anglian Water is no excep- tion. For the past ten years, the lion's share of Anglian's capital investment pro- gramme has been delivered through @One, the alliance set up in late 2004 in preparation for the start of AMP4 in 2005. Also, there "were nine or ten different ways" of delivering capital investment, with different contracts to underpin them. However, from AMP6 Anglian is adopting a different approach, although still very much based on an alliancing model. Jason Tucker, Anglian Water's head of capital delivery and supply chain man- agement, explains: "Alliancing for Anglian Water was clearly new to the business back in 2005. So when we were doing our reflections on what we needed going forward there were a few things that triggered our approach that ultimately led to the AWS [Anglian Water Services] board signing off our AMP6 contracting strategy back in November 2012. "The alliance model in every depart- ment has come out on top in terms of the relationships, bringing innovation and delivering the right sort of chal- lenges and success not just financial, but non-financial as well – in health and safety and carbon challenges and corporate social responsibilities. "It [alliancing] ticks all the right boxes." Motivations Rather than opting for one super alli- ance, though, Anglian looked at its business needs and future business needs over the next 15 years. Whilst other organisations have based their operations on geography, or set up alli- ances for particular regional patches, Anglian looked at the motivations and the type of work that the alliances would need to deliver. Essentially, says Tucker, the strategy became not one of lots of alternatives to alliancing but 'how do we effectively put all our investment programme through an alliance model?'. The answer has come in the shape of four alliances that are tasked with deliv- ering Anglian's capital investment pro- gramme for the next three five-yearly AMP cycles. These are: • Integrated Main Works Capital (IWMC), comprising Balfour Beatty, Barhale, Grontmij, MMB, MWH and Skanska. Black & Veatch is a reserve partner • Integrated Operational Solutions (IOS), consisting of Barhale, Kier MG and Morrison Utility Services • Integrated Metering & Developer Services (IMDS), comprising Clancy Docwra and Kier MG • Integrated Maintenance & Repair (IMR), the successful partners have yet to be announced Solid history IWMC, which replaces @One and the Special Projects team, will focus on the very large and complex schemes while IOS will deliver small replacement and refurbishment projects. Anglian's metering programme and developer connections will be handled by IMDS, and IMR will look a¦er the repair and maintenance work. The alliances' partner contracts may run for 15 years, with a review a¦er every five years. Collectively, this makes them one of the longest collaborations in the industry. Tucker says: "The ten years gave us a good solid history of performance. But what came out of our review was that ten years in with @One we hadn't quite "The alliance model in every department has come out on top in terms of the relationships, bringing innovation and delivering the right sort of challenges and success not just financial, but non- financial as well..." Jason Tucker Anglian Water looked at work that the alliances the model to carry out