The contract award marks the first time United Utilities has outsourced its maintenance activity as it seeks to drive material efficiency and operational improvements in line with customer expectations and regulatory requirements.
Under the initial five-year deal Costain will provide overall management and delivery of United Utilities’ larger-scale water and waste water asset maintenance activities across the entirety of its network, including 96 water treatment and 575 waste water treatment sites, which serves over six million people in the North West of England.
Costain said its integrated technology and consulting solutions will help United Utilities move from a “reactive ‘fix-on-fail’ approach to a proactive maintenance programme”.
Contract mobilisation will begin immediately in preparation for the official start in June 2019. The framework is expected to be worth around £35 million per annum throughout the duration of the contract, which also comes with an option to extend to 10 years.
The Group continues to be involved in a wide range of tendering activity across the UK water sector in anticipation of AMP7 (2020-2025) for which companies have pledged to spend more than £50 billion on improving services, a double-digit increase on the previous period.