Water & Wastewater Treatment

20 | JANUARY 2014 | WWT | www.wwtonline.co.uk Consultant and Contractor File All Change for AMP6 W ith its new emphasis on Totex and operational efficiency, AMP6 is set to be a game chang- er for the industry. So what do the contracts awarded so far under AMP6 tell us about how water company priorities have changed – and how contractors and consultants are faring in the new environ- ment? The water companies that have so far signed up partners for 2015-20 have in some cases shown a willingness to cast the net wider for expertise. Alliances have been formed, such as Thames Water's eight2O alliance and Severn Trent's One Severn Trent, which are broader than have been seen before and demand that collaborative working be taken to new heights. Regulatory requirements to consider Totex have for some engendered longer-term thinking, with 5-year contracts awarded which have the option of being extended to 10 or 15 years. One firm which has enjoyed plenty of success so far has been MWH, which has secured con- sulting or delivery contracts with Severn Trent, Southern Water, Thames Water, Yorkshire Water, United Utilities and Anglian. "The industry is already on the AMP6 journey to address the Totex challenge, with different companies starting at and moving to differ- ent points in their maturity of embracing and delivering a Totex efficient approach," says MWH Global Chief Strategy Officer David Smith. "The change from the existing Capex focussed approach is considerable and the effort required should not be underestimated. Developing and embedding Totex, efficiency driven processes and systems into everyday activities will deter- mine which companies successfully make this transition." An example of this change of approach is MWH's development of what it calls its 'Totex This year's Consultant & Contractor File reveals some interesting insight on how water companies are approaching AMP6 and which consultants and contractors are meeting their needs James Brockett EDITOR, WATER & WASTEWATER TREATMENT Solution Hierarchy': Eliminate, Collaborate, Operate, Invig- orate, Fabricate. Any identified need can be passed through this filter – to see if it can be eliminated at source or solved by operational improvements – before a build solution is considered. Smith says that this hierarchy encourages the development of solutions "without boundaries" and bring- ing in a wider set of stakeholders; perhaps one reason why there are already signs that AMP6 is encouraging a more collaborative feel to the industry. "The AMP6 and beyond 'challenge' is a tremendous opportunity for the best performing companies. I think the success MWH has achieved in the procurement of AMP6 contracts so far has been driven by our ability and agility to widely collaborate to help them get there," concludes Smith. For some, the dawning of AMP6 has been an opportune time for M&A activity, as firms seek to make their offering more comprehensive, to gain a wider platform to compete for new work and consolidate existing relationships. The biggest recent example of this is AECOM's acquisi- tion of URS, which was announced in July and completed in October. With nearly 100,000 employees between them and a footprint in 150 countries, the tie-up between the two global engineering giants has implications which reach far beyond the UK water sector, but there is no doubt that the suite of services that the combined entity will be able to offer is enhanced. By acquiring URS, AECOM has also gained contracts with Scottish Water, Southern Water and engineering, planning and environment framework agree- ments on the largest water project currently tabled in the UK, the Thames Tideway Tunnel. Graham Howells, managing director of AECOM's water practice in EMEA, explains: "The combination of AECOM and URS creates significant and exciting opportunities that our combined clients will benefit from. We are now in a stronger position to deliver integrated catchment and process solutions across water and the environment and to capitalise on prospects in the industrial water sector. "We have an outstanding group of water industry pro- fessionals who will be key to the successful delivery of our growth ambitions into overseas water opportunities." While this year's WWT Consultant and Contractor File offers an intriguing snapshot of how water companies are adapting to the new landscape and which companies are benefiting, there is much still to be learned as we progress into AMP6 and work is awarded further down the supply chain. Watch this space.

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