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Exclusive: Six teams to tender Scottish Water £1.5bn deals

Construction News can reveal that six joint ventures have been invited to tender across two categories for Scottish Water’s infrastructure programme, which could be worth up to £1.47bn over 12 years.

Scottish Water is procuring long-term partners for its Q&S4 SR15 (2015-21) capital programme and is moving into the tendering stage of the infrastructure alliance’s procurement process.

The programme is due to be divided into two lots: waste water infrastructure and water infrastructure. Each lot is estimated to be worth up to £65m annually with an estimated value of £390m in each lot between 2015 and 2021.

However, there is an option of an extension to the contracts so that they run over 12 years – the next two regulatory periods – and would be worth almost £1.5bn.

Construction News revealed the winners of Thames Water’s £3bn alliance earlier this month with a Skanska/MWH/Balfour Beatty JV and a Costain/Veolia/Atkins team chosen as design-and-build alliance partners.

Atkins has paired with Galliford Try, Farrans and George Leslie for Scottish Water, while Balfour Beatty is bidding in partnership with Barhale and CH2M Hill.

MWH is bidding with Carillion and Morgan Sindall.

Scottish Water shortlisted bidders

Waste Water Infrastructure Alliance:

Water Infrastructure Alliance:

  • Aqua 4 – Graham Construction, Mace, Grontmij and VolkerStevin
  • Galliford Try with Farrans, George Leslie and Atkins
  • Morgan Sindall, Carillion and MWH
  • Morrison Utility Services & Aecom 
  • Uisge Alliance – Balfour Beatty with Barhale and CH2M Hill

Firms understood to have missed out include Amec and a joint venture which involved Murphy and McNicholas.

For its waste water infrastructure alliance lot, Scottish Water will procure one alliance partner with design-and-build capabilities to support the programme.

The client expects 40 to 60 per cent of the work under this lot to be carried out directly by the contractor, with the remaining work to be procured through wider supply chain delivery.

The lot is estimated to be worth about £60m annually over both the initial six-year period and the optional extension period, giving a total value of £720m over 12 years including the regulatory period from 2021 to 2027.

Works will include construction of new assets, renewals, modification, maintenance and refurbishment of sewerage networks and pumping stations.

Scottish Water said a significant proportion of the work will involve removing properties from the flood register by addressing flooding that results from overloaded sewers, and to address unsatisfactory intermittent discharges from the sewer network.

For its water infrastructure alliance lot, Scottish Water expects between 50 per cent and 70 per cent of work to be carried out directly by the alliance partner.

The lot is estimated to be worth £62.5m annually, with a total value in each regulatory period of around £375m.

The scope of this work will include investigations and interventions on raw water, trunk and distribution mains, including service reservoirs.

Scottish Water will develop and monitor a suite of key performance indicators to assess partners on areas including health and safety, timely completion of projects, community benefit and carbon reduction.

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