Thames announces £1.2bn of contracts

Thames Water awarded contracts for up to £1.2B on 7 April. The company says the work is to carry out essential work to improve and maintain its ageing water pipes, sewers and other facilities over the next five years.

Thames says it will invest nearly £5B across London and the Thames Valley over the next five years.

Martin Baggs, Thames Water’s chief executive, said: “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.”

The base load contracts are:

* 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.

The work in these contracts includes continuing to replace London’s worn-out Victorian water mains, upgrading sewers to protect customers’ homes from sewer flooding, improving water and sewage treatment works and extending water and sewerage networks.

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