33 companies awarded £3.6 billion Northumbrian Water framework

Northumbrian Water has completed its AMP8 framework procurement with the appointment of 33 new partners to help deliver its £3.6bn AMP8 capital investment programme.

The appointments have created brand new opportunities for many of the construction and engineering contractors and provided a particular boost to contractors within the water company’s operating areas, helping Northumbrian Water deliver on their promise to spend 60p in the £1 with regional suppliers.

The innovative procurement approach also created opportunity for 11 new entrants into the water sector with the promise of mentorship and guidance, with the ultimate aim of building more capacity in an industry that is seeing significant investment growth.

The new partners have been appointed to 11 procurement lots to work across the company’s Northumbrian Water and Essex & Suffolk Water operating areas. The contractors will be available to work flexibly across the company’s programme of work including working with its Living Water Enterprise, but will primarily work with its in-house Integrated Delivery Services (IDS) team, delivering lean and agile short-term schemes. They join existing partners already playing a role on our wider ecosystem.

The IDS team operates an integrated delivery model with our ecosystem partners, combining in-house and partner expertise to deliver the best outcomes on shorter cycle, lower complexity solutions. The estimated value of the lots range from £0-£5m to £20m-£40m per annum.

Earlier this year, Northumbrian Water announced its largest ever contractual commitment with the appointment of seven new partners, adding to five companies appointed in 2023, creating the Living Water Enterprise (LWE). The LWE lies at the heart of the company’s plan for transformational investment and change and will deliver long cycle and higher complexity programmes.

Monisha Gower, Assets Director at Northumbrian Water Group, said: “AMP8 and beyond represent a huge challenge for us, as they do the whole water industry. We are nearly tripling our investment programme and this requires a significant increase in delivery capacity at a time when the rest of the sector, and construction as a whole are also preparing to ramp up activity.

“So, we needed to build capacity when demand for supply chain partners is at an all-time high. That’s why we’ve moved quickly and worked innovatively in our procurement, to make sure we get the right partners on board, with time to prepare for delivery.

“The ecosystem we have built provides a lean and agile delivery community that will play a fundamental role as we scale for AMP8. These appointments represent a significant milestone for us. Our delivery ecosystem is now fully populated with supply chain partners and we can begin planning for execution of our AMP8 programme in earnest."

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