WET News

4 ALLIANCES 2017 ALLIANCES 2017 Partnering is still a winner Greater efficiency and innovation star as collaborative thinking continues to make inroads in the water sector. I t is now more than 18 months since the start of AMP6 and, if tradition is anything to go by, the water sector should be gearing up for a period of peak spending. Despite the slow start to AMP6 having dampened the optimism that had preceded this latest regulatory cycle there are signs that things are now start- ing to pick up. In the first few months of AMP6 there were reports of project delays as the water industry got to grips with new reg- ulatory demands from Ofwat – mainly adoption of a total expenditure (totex) methodology, and the introduction of outcome delivery incentives (ODIs) to drive greater efficiencies. This led to a shi… in emphasis for the industry's sup- ply chain as the water companies sought different skill sets to help make more of existing assets. One area, however, where there has been continuity is the trend for water companies to use joint ventures and con- sortia to deliver their capital delivery pro- grammes, as this issue of Alliances high- lights. Alliances 2017 is the only guide offering an insight into the collaborative ventures formed by the leading civil and process engineering companies and con- sultants serving the water sector. We have taken the leading joint ven- tures (JVs) and consortia and profiled each one in turn. In this AMP cycle, there has been more focus on long-term thinking also being reflected in the way some water companies are looking to procure the firms that will deliver work during AMP6. Many have opted for alliances, and frameworks that run beyond the tradi- tional five-year AMP period. It is possible that this longer-term thinking and the continuity provided by extended contracts will smooth out the traditional rollercoaster ride that the transition from one AMP cycle to the next usually brings. Expectations With the AMP6 emphasis being on totex it is inevitable that there has been change in delivery models as the water compa- nies' looked at their procurement strategies. This has meant joint ventures and their parent companies assessed how best to respond to the demands and expectations of the AMP6 marketplace. The arrival of AMP6 also saw a num- ber of new consortia introduced – ESD, CiM6, KCD, BNM Alliance, for instance – and these will now have bedded in. In the run-up to AMP6 there was a hive of activity as contractors and consultants jostled for the best opportunities to win work. The activity was more intense this time around as contracts that had been in place for five or ten years were up for grabs again. Miss out for AMP6 and that could mean another five, ten or 15 years pass before some contracts come up again. Although, just occasionally an oppor- tunity presents itself for the taking. Take Black & Veatch, for instance, which has joined Costain and Atkins as part of Thames Water's eight2O alliance. Black & Veatch, Costain and Atkins have recently formed new alliance CABV. "Having a multi- partner approach drives innovation which in turn delivers greater efficiency"

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