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Thames Water awards £1.2bn contracts

Thames Water has issued £1.2bn of contracts for the next water spending round - AMP5 - which runs from April 2010 to March 2015.

The contracts form part of a £5bn spending plan in London and the Thames Valley.

Three joint ventures have been formed to do the work, and one more is expected to be signed in the coming weeks:

  • Optimise (J Murphy & Sons/Clancy Docwra/Barhale/MWH) for north London and Thames Valley water pipes and sewers;
  • MGJV (Morrison Utility Services/Galliford Try) for south London water pipes and sewers;
  • GBM (Galliford Try/Biwater/Mott MacDonald) for north and south London water and sewage treatment works.

Thames Water’s chief executive, Martin Baggs, said: “In our continued drive to be more efficient for our 13M customers we’ve completely changed the way we do our work. Instead of letting numerous small contracts to lots of providers, we’re working with leading organisations to deliver the ‘base load’ of our investment programme for the next five years.

“This new approach has changed the way our contractors have bid for the work: they’ve formed joint ventures, each containing the required specialists. The way we’ve structured these programmes of work will also allow our contractors to plan further ahead and give them greater incentives to be efficient on cost and time.

“Our operational performance is better than ever right now – best-ever water quality*, best-ever sewage works compliance and leakage down 24 per cent in the past four years. Our new approach will help us build on these standards of excellence over the next five years.”

Work will include replacing London’s Victorian water mains, upgrading sewers to protect customers’ homes from sewer flooding, improving water and sewage treatment works and extending the existing sewer network.

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