Water and Effluent Treatment Magazine
Issue link: https://fhpublishing.uberflip.com/i/411323
4 ALLIANCES 2015 ALLIANCES 2015 Partner swapping for AMP6 The growth of alliances and JVs in the UK water sector shows no sign of slowing for AMP6, but what happens to those whose contracts are coming to an end? A lliances 2015 is the only guide offering an insight into the collaborative ven- tures formed by the leading civil and process engineer- ing companies and consultants serving the water sector. We have taken the lead- ing 20-plus joint ventures (JVs) and con- sortia and profiled each one in turn. This reveals how collaborations are adapting as the industry enters the final few weeks of AMP5 and prepares for the AMP6 cycle covering 2015-20. Throughout the past 12 months there has been a hive of activity as contractors and consultants have jostled for the best opportunities to win work in the next AMP cycle covering 2015 to 2020. With less than five months to go to the start of AMP6 from April 1, this picture is unlikely to change. And it seems that if you are in some form of collaboration, this is more favourable to some water companies as they adopt alliance models moving for- ward. Look at Thames Water, with its eight2O; and Anglian Water, which has opted to have four alliances handling its capital delivery potentially over the next 15 years (see p20-21). And as the industry hurtles towards the next AMP cycle exciting times are ahead, perhaps for the first time since five or ten years ago. Why? It is simple – contracts that were awarded five or even ten years ago are ending and contractors are now jock- eying for position and partners to make sure they do not miss out this time round. AŒer all, it could be another ten or 15 years before the next opportunities arise. Expectations And that is certainly true in terms of the collaborations and joint ventures that have been around since for the past two or three AMP cycles and what will become of them going forward as con- tractors and consultants decide who the ideal partners are to meet the challenges that AMP6 and potentially AMP7 and 8 will bring. In other words, joint ventures and their parent companies are assessing how best they can respond to the expec- tations and demands of the emerging AMP6 marketplace. Unfortunately, while this does mean the end for some consor- tia, 4Delivery and KMI+ to name but two, new collaborations have emerged includ- ing Caledonia Water Alliance, Advance, C2V+ and LiMA. In the case of KMI+ – its partners comprise Kier, Murphy, Interserve and Mouchel – it has more than £100M of work to deliver for United Utilities. This is likely to be completed in around 18 months time, says a spokesperson for the consortium. Looking at AMP6, Murphy and Interserve formed a partnership while Kier collaborated with Veolia and Mouchel. Neither bid was successful. However, the spokesperson says: "We anticipate that there will still be a requirement for the skills and expertise that KMI+ holds, and we are continually exploring alternative sources of revenue. "As a joint venture, we have valuable skills and experience that we believe will allow us to remain successful within the UK construction industry." Like KMI+, 4Delivery (Veolia, Costain and MWH) will complete its AMP5 pro- jects for client Southern Water even if this continues into AMP6. Graham Dick- inson, marketing director, at MWH, says "It's about being able to have a kind of maturity in those relationships to deal with the rough and smooth." Duncan Atkins, managing director, Imtech Water