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North Midland wins £225m South West Water deal

North Midland Construction has landed the £225m sole-contractor deal to deliver civil works across South West Water’s AMP7 funding period.

The contractor is the only company to be selected for K7 Capital Works civil engineering framework, which will run from 2020 to 2025.

South West Water has also appointed Stantec as its single strategic consultant for AMP 7.

The contract will see North Midland Construction deliver civils and building works, demolition jobs and M&E packages for the Pennon-owned client.

The deal will replace the current H5O alliance, which involves Interserve and Balfour Beatty and was formed in 2009.

North Midland Construction will work alongside Balfour Beatty and Interserve to complete a small number of legacy projects on AMP6 across South West Water assets before 2020.

The aim of the K7 framework was to appoint another contractor alongside North Midland, but South West Water has said that this decision is on hold.

Last month South West Water, which covers Devon, Cornwall and parts of Dorset and Somerset, revealed it would invest more than £1bn in improving services and carrying out environmental upgrades over the next 15 years.

Earlier this month, North Midland Construction’s subsidiary Nomenca was chosen for two lots on South West Water’s MEICA capital works framework.

The contractor won spots on the major and minor works lots under the deal, which will run until 2026.

Water sector work is North Midland Construction’s biggest income stream and was responsible for more than 50 per cent of the company’s £168m turnover in 2017, according to its accounts for the year to 31 December.

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