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CN reveals JVs and programme managers bidding for £3bn alliance

Exclusive: Seven joint ventures including most of the UK’s biggest contractors have prequalified for a new alliance framework for Thames Water worth up to £3 billion.

Twenty contractors and consultants have formed teams to tender for the alliance, through which the firms will help form the plans for the construction of schemes under Thames Water’s asset management period six (AMP6), which will run from 2015 to 2020, Construction News can reveal.

Seven joint ventures will be brought to tender stage for the alliance this month.

The partnerships bidding for the work are: Tamesis Plus JV, comprising Laing O’Rourke, Imtech and Barhale; a new JV entitled GMM involving Galliford Try, Mott MacDonald and Morrison Utility Services; MBVA JV between Murphy/Black and Veatch/Aecom; KUV Water JV comprising Kier/URS/VolkerFitzpatrick; a JV between Amec and May Gurney; one involving Costain, Veolia and Atkins; and one comprising Skanska, MWH and Balfour Beatty.

The alliance will also include a representative of Thames Water, a technology and innovation provider and a programme manager, which they are procuring separately. Aecom, Amec, CH2M Hill, Jacobs UK, Mott MacDonald and MWH UK have prequalified to bid to be programme manager.

Last month CN revealed full details of the new alliance, in which contractors are expected to share supply chain members as they carry out essential upgrades to water pipes, treatment facilities and sewers across London and the Thames Valley in AMP6.

A Laing O’Rourke and Imtech Process joint venture entitled Tamesis is already working with Thames Water as the contractor for a £200 million upgrade to its Crossness Sewage Treatment Works in east London and on the £140m upgrade of the Beckton Sewage Treatment Works extension.

Galliford Try is working under the GBM joint venture with Mott MacDonald on north and south London water and sewage treatment works, and with Morrison Utility Services under the MGJV joint venture on south London water pipes and sewers.

CN understands two other joint ventures have not been prequalified but could win work separate from the alliance – one comprising Bam Nuttall, Grontmij and Enterprise and a second formed of Morgan Sindall and Arup.

Thames Water intends to switch to an alliance model from 2015 but will bring in its alliance team from May to start planning and counteract problems with the ‘boom-bust’ nature of water procurement.

The alliance will help prepare a business plan for AMP6, which will be submitted to the regulator Ofwat ahead of the 2014 industry review of prices.

The alliance will have a board that will vote on proposed schemes. Work will be carried out either by one of the design-and-build teams or directly by a supply chain member on a ‘pain-gain’ incentivised contract based on the entire programme.

Savings made during AMP6 will be shared between the seven alliance members.

A spokesperson for Thames Water said this stage of the procurement is for the “top tier”of the alliance, adding that “there will still be opportunity for other contractors/consultants to work for the alliance”.

The deadline for receipt of PQQs from potential alliance technology and innovation providers passed today.

The prequalified joint venture bidders:

  • Amec/ May Gurney
  • Costain / Veolia / Atkins
  • Galliford Try / Morrison Utility Services / Mott MacDonald – GMM JV
  • Kier / URS / VolkerFitzpatrick – KUV Water JV
  • Laing O’Rourke / Imtech / Barhale – Tamesis Plus JV
  • Murphy / Black & Veatch / Aecom – MBVA JV
  • Skanska / MWH / Balfour Beatty

Firms prequalified for programme manager:

  • Aecom
  • Amec
  • CH2M Hill
  • Jacobs UK
  • Mott MacDonald
  • MWH UK

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